√VFACTS December 2022: Mercedes, BMW, Audi hit reverse in luxury-car sales battle

Luxury-car sales in Australia hit reverse in 2022, as rising interest rates and production interruptions delivered the lowest results in up to 10 years.

German automaker Mercedes-Benz led the Australian luxury-car market for the ninth year in a row in 2022 – however sales hit reverse at a similar pace to rivals BMW and Audi.

New-car sales figures in Australia for 2022 showed Mercedes-Benz passenger-car and SUV sales slipped 5.5 per cent compared to the prior year, while deliveries of second-placed luxury brand BMW slowed by 8.8 per cent, and Audi finished third in the segment amid a decline of 7.9 per cent.

Dealer sources told Drive rising interest rates and production interruptions pumped the brakes on deliveries in the luxury sector.

Representatives for the three top-selling prestige brands in Australia – Mercedes-Benz, BMW and Audi – said they were still holding orders going well into the 2023 as delivery delays typically ranged from three to nine months on popular models.

The luxury-car sector slowdown saw Audi post its lowest annual sales in Australia in 10 years, while Mercedes-Benz and BMW each hit an eight-year low.

It’s a surprising fall from grace for all three brands, which appear to have lost at least some sales to electric-car specialist Tesla, which reported almost 20,000 vehicles as sold in Australia last year.

Audi had the most dramatic decline among the German trio; its 2022 tally was 39.2 per cent less than its record annual result set in 2016.

Mercedes-Benz experienced the next biggest drop in sales – 27.7 per cent – compared to its record set in 2017, amid a shift to non-negotiable fixed prices for its new cars since the start of 2022.

BMW Australia’s sales total in 2022 was 19 per cent less than its record year set in 2016.

Toyota’s luxury division Lexus also went backwards in 2022, posting its lowest annual result in eight years – which was 26.2 per cent less than its record result set in 2019.

Meantime, British brand Jaguar posted its lowest annual sales result in Australia in 11 years after reporting sales that amounted to a fraction of its former glory.

Jaguar Australia reported 700 new cars and SUVs as sold in Australia in 2022, a staggering 77 per cent decline compared to its record annual tally in 2016.

Jaguar’s off-road offshoot Land Rover also had a shocker in 2022.

Land Rover’s annual sales tally of 4348 deliveries was a 32.7 per cent drop compared to the prior year – and a significant 68 per cent decline compared to its annual record set in 2016.

Despite the significant sales slowdown of most luxury brands – in an overall new-car market that grew by 3 per cent compared to the year prior – there were two bright spots in the sector.

German sports-car specialist Porsche posted an all-time sales record in Australia, reporting 5608 deliveries – the first time it has eclipsed the 5000 mark in a calendar year in Australia.

And Swedish brand Volvo was also in positive territory, reporting 10,715 new cars as sold in 2022 – its highest tally on record after hovering around 4000 to 5000 sales for the better part of two decades.

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