Prestige brands key to recovery
Premium car brands look set to play a central role in the Australian motor industry’s recovery from the severe downturn caused by the coronavirus pandemic, as evidenced by strong sales results across a broad range of prestige marques in June.
While light-commercial vehicle sales were a driving force behind the June result, pushing up 8.6 percent to more than 100,000 units, the premium car sector – accounting for about 16,000 units last month – was no less impressive, climbing 31.8 percent across the various higher-tier passenger car segments and SUV categories.
Light, small, medium, large, sports… substantial gains were seen across the premium market in almost every class of vehicle, with double-digit growth spurts in nine out of the 13 segments, 50-plus percent rises for small and light cars and small SUVS, and a 32.5 percent upswing for the biggest-selling segment, mid-size SUVS.
Negative results were found in only two niche corners of the market – limousines over $100,000, down two units, and sportscars over $200,000, down 66 units.
The June result has helped fuel widespread expectation among the car companies and industry observers that the trend will continue as wealthier Australians, forced to curb their spending on overseas travel as a direct result of the COVID-19 pandemic, shift to luxury vehicle purchases.
The volume-selling prestige marques were the standout performers last month, led by Mercedes-benz cars racking up 4437 sales for a 31.4 percent increase on June last year and eighth position across the entire market, ahead of Nissan, Subaru, Honda and various other mainstream brands.
This was a return to form for Mercedes after deferring to BMW in April and May, and finding its sales for the year to date down 20 percent before the end-of-financial-year surge that now sees it only down nine percent at the halfway mark of the year.
By comparison, the overall industry is down 20.2 percent.
BMW might have reassumed second position in June, but its 3307 sales was an all-time monthly record for the Bavarian brand in Australia, up 32 percent on the corresponding month last year and taking the marque into positive territory for the year to date by 1.6 percent.
BMW’S Mini brand also recorded a 49.5 percent increase in sales last month, to 450 units, which places it 9.4 percent in arrears after six months of trading, but, according to local management, sees it well positioned for a quick bounce-back in the second half of the year.
What’s more, BMW Group Australia says 15 of its dealers achieved sales records last month, 37 reported yearon-year growth and 23 outperformed the premium segment trend with double-digit percentage growth.
The third member of the leading German premium brand triumvirate, Audi, similarly turned in a resurgent sales performance in June with 2027 sales, an 84.6 percent increase on June last year when it was struggling due to a severe lack of model availability and supply.
The result also now places Audi in a positive position for the year to date, up 0.4 percent, from which it can now attack with an array of new models arriving in showrooms.
A host of other high-end brands last month either shrugged off, or continued to ignore, the coronavirus blues including Lexus, Volvo, Porsche, Mercedes Vans and Ram.
For the year to date, Lexus has fallen just 1.4 percent, Volvo has reduced the deficit to 11.9 percent, and Porsche is poised to return to growth from what is now only a 2.9 percent backmarker.
Among the premium light-commercial brands, Mercedes-benz Vans is in the black with a 2.9 percent increase, while the Ram Trucks pick-up truck conversion operation continues to exert its muscular form on the marketplace with 54.6 percent growth.
Jaguar and Land Rover remained in the red last month, but the British brands turned in better results, down 6.2 percent and 7.5 percent respectively to leave them with year-to-date downturns of 33 and 42.6 percent.
Alfa Romeo continues to struggle, posting only 58 sales last month, while the fledgling Genesis brand had its best-ever month with 21 vehicles registered in June – accounting for a third of its total 63 sales for the year.
The more exotic and super-luxury marques appear to be generally weathering the corona storm and, like the bigger-selling premium brands, will be an important indicator of the market’s recovery during the second half of the year.
Ferrari is down 9.1 percent at the halfway mark on 110 units, compared with Lamborghini 54, Mclaren 30, Aston Martin 40, Lotus 28, Bentley, 19, and Rolls-royce, 18.
The higher-volume Maserati brand also finds itself down 16.3 percent, on 231 units, but with expectations that the second half of the year will be a considerable improvement on the first.