Comparison of Premium brands across the globe

 

The market for premium vehicles increased by 10% in the first half of 2015 (compared to the first half of 2014), reaching 4.3 million units against 3.9 million units last year. Three brands represent two thirds of the market for premium vehicles: BMW, Audi and Mercedes. The last third is represented by many smaller volume brands such as Volvo, Land Rover, Lexus, Infinity, Acura, Jaguar, Porsche, Alfa, Lancia, DS…

How do the first 3 premium brands rank? In the first haft of 2015, BMW is the leading premium brand globally with 954 000 units (+8.3% compared to last year) ahead of Mercedes (899 000 units, +22.6%) and Audi (893 000 units, -1.6%). Mercedes has hence overtaken Audi in the last couple of months, after being in third position for many years. The success of the Active and the Grand Tourer enabled BMW to stay the leader of this segment.

Mercedes is the only carmaker of the three premium manufacturers to increase its production in China (+68% in the first half of 2015), while BMW and Audi stayed stable (with respectively -0.5% and -2%). In other word, Mercedes production in the US double year on year thanks to the arrival of the C class on the assembly lines of Tuscaloosa which didn’t decrease production volume of the notorious Bremen plant. Audi suffered from the A4 reaching the end of its life cycle (110 000 units produced in Europe in the first half of 2015 against 120 000 last year), its replacement being launched next fall its possible that the ranking of the top three Premium manufacturers may change at the end of the year.

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Assessment of US sales (PC+UV) for the first six months of 2015

 

In the first half of 2015, the US market (PC + UV) increased by 2.8% to almost 8.6 million units, compared to the same period last year. Unlike local car production, sales of commercial vehicles rose (+ 8% reaching 4.7 million units), while sales of passenger cars stagnated at nearly 3.9 million units.

Like Europe, sales of SUVs were up (+ 12.7% reaching 3 million units) while those of MPV were down (-15.2% decreasing to 275 000 units). Pick ups continued to grow (+ 11% reaching 982 000 units). The D segment (EU definition) is the largest in the US market and rose by 5.7% (to 3.3 million units), driven by the renewal of SUVs. Its interesting to note the growth of the urban segment (segment B), which increased by 12.5% to 380 000 units, which mainly benefited Japanese brand vehicles.

Most mainstream brands in this  market have benefited from the growth of the American market, whose leaders are: Ford (+ 1.5% reaching 1.3 million units), Chevrolet (+ 2.5% reaching 1.05 million of units) and Toyota (5.2% reaching 1.04 million units). In the FCA group, while Chrysler experienced strong growth (+ 21% reaching 177 000 units), Dodge was down (-16.2% decreasing to 257 000 units). It is interesting to point out the performance of the first premium brand in the country, Lexus, growing by 14.5% (159 000 units), overtaking BMW (-1.4% decreasing to 155 000 units).

By model, the F series remained the market leader, despite a slight drop in sales (-2.4% decreasing to 357 000 units). Its competitor, the Chevrolet Silverado progressed by 14.6% (276 000 units). Finally, the Chrysler 200 experienced strong growth, recently renewed, it saw its sales jump by 136% to 106 500 units.
 

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15-18-10b 

 

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Assessment of UK sales (PC+UV) for the first six months of 2015

 

In the first half of 2015, the British market (PC+UV) grew by 8.1% to 1.55 million units. As for Germany, France and Europe in general, sales of commercial vehicles have progressed well (+ 20% reaching 182 400 units), and that of passenger cars grew by 6.7% (1.38 million units).

By segment, solid growth is recorded for segment D (+ 24.5% reaching 205 000 units). Only segments A (-3.3% decreasing to 125 700 units) and E (-1.8% decreasing to 78 800 units) are down. By body, like other European countries, sales of SUV are still progressing (+ 24.9% reaching 325 300 units) at the expense of the MPV category (-25.8% decreasing to 80 500 units).

By brand, Ford, is the leading brand in the country and increased by 6.2% to almost 224 000 units. The brand benefited from the growth of the Kuga SUV (+44.8% reaching 16 600 units) and the launch of the Ecosport (4 100 units). Furthermore, the Transit Custom also rose sharply (+25.2% to 36 000 units), making it the fifth best-selling vehicle in the United Kingdom, regardless as to whether they are PC or UV , this is something quite unusual in a mature market. Overall, all brands grew, apart from Honda (-7.6% decreasing to 27 600 units), Suzuki (-10.3% decreasing to 17 700 units) and DS (-26.3% reaching less than 10 000 units). These three brands are awaiting new developments that are expected to arrive in the second half of the year or early 2016.

By model, sales of the Ford Fiesta were almost stable (-1% decreasing to 71 200 units), while the new version of the Opel / Vauxhall Corsa increased by 19% to nearly 52 000 units.
 

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The US EV market (100% Electric+Hybrids) for the first 6 months of 2015

 

In the first half of 2015, the share of EVs in the US reached 2.8% against 3.6% last year. Sales of EVs decreased by 15.5% due to the fall of petrol prices (petrol being far ahead of any other power type), fewer subsidies and the increasing share of SUV, a category in which there are very few EV available. The share of the Chevrolet Volt decreased by 35%, the Nissan Leaf decreased by 23% and the Toyota Prius plug-in decreased by 70%! Sales of hybrid vehicles didn’t suffer such strong decreases: Honda decreased by 21% while the Toyota Prius decreased by 16%.


The share of non plug-in hybrids reached 2.3% in the first half of 2015 while the share of 100% electric and plug-in hybrids only reached 0.5%. Over the same period diesel vehicles (very niche in the US) didn’t loose any market share, with 1% of the market it stayed stable due to the decline in fuel prices.


By model, it appears that Toyota hold the first 4 places in the category of non plug-in hybrids (Prius, Prius C, Camry, Prius+) and Nissan hold the second place in the category of electric vehicles (behind the Tesla Model S but ahead of the Chevrolet Volt). In fact, the Japanese carmaker holds 2/3 of the market for hybrids and electric cars in the US, identical to the same period last year.

 

15-19-1  

 

 

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Assessment of US production (PC+UV) for the first six months of 2015

 

In the first half 2015, car production (PC + UV) in the US increased slightly by 1.2% to 6.1 million units. There has been a production slowdown after several booming years, post-automotive crisis. The production of passenger cars increased by 3.5% (4.7 million units) while that of commercial vehicles declined by 5.7% (to 1.4 million units).

The Ford Group, the leading carmaker in the US, fell by 2% to 1.2 million units, ahead of GM that was also down by 2.7% (1 million units), while FCA is almost stagnant at 917 000 units (+ 0.9%). Strong growth is to be credited to foreign groups: BMW (+11.8% reaching 197 000 units) thanks to the ramp-up of the X4 and the progression of the X6 ; Daimler (+ 97.4% reaching 174 600 units), which benefited from the transfer of the Mercedes C Class (55 000 units produced); Subaru (+ 35% reaching 115 200 units) thanks to sales of the Legacy / Outback.

By model, the F series remained the most produced models, despite a decline of 15.6% (to 432 000 units). Nevertheless, coming months should see an increase with the ramp up of the new F-150. The Japanese Toyota Camry sedan saw its production stagnated (+ 0.8% reaching 233 690 units), while its rival, the Honda Accord was down by 19.4% (to 195 000 units). It is interesting to point out the increase of the Chrysler 200, recently renewed (+ 108% reaching 98 800 units).
 

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15-18-9b 

 

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