BMW sold more cars, sport utility vehicles (SUVs) and crossovers than Mercedes in March. Both companies can take relief that other luxury brands lagged well behind.

The race between the two German car behemoths finished with a razor-thin BMW victory. Its total reached 34,301, against 32,300 for Mercedes. BMW sales advanced by 6.9%, while Mercedes improved 10.2%. For the first three months of the year, BMW sales hit 78,492, up 8.4%. Mercedes sales totaled 83,715, or up 8.4%. Based on these numbers, the top spot may not be determined until the end of the year.

BMW’s sales relied to a large extent on its smaller, lower priced cars. Sales of its 1/2 Series rose 124% to 1,249. Sales of its 3/4 Series rose 47% to 14,835. BMW also did well with its mid-level sedan. Sales of the 5-Series rose 32% to 5,100. BMW was hurt by sales of its SUVs, which dropped 20% to 7,115.

The BMW numbers show how much it has come to rely on what many analysts would consider entry-level cars. The price of the 2-Series begins at $32,100. The 3-Series starts at $32,950 and the 4-Series at $40,300. The price of a Ford Motor Co. (NYSE: F) Taurus tops out over $40,000. No one would argue that the American car is a luxury model at all. BMW would argue back that it wants first-time buyers so that it can move them up the food chain of its more expensive cars as time passes.

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Mercedes relies on the same philosophy. Its CLA-Class lowest priced model starts at $31,500. It also barely qualifies as a luxury car. The only argument Mercedes can make in this regard is that the CLA is a Mercedes and not a Chevy. This shows how powerful the Mercedes and BMW brands are. They can sell non-luxury models as luxury ones.

Luxury, it turns out, is in the eye of the beholder. BMW and Mercedes have moved well down-market to bolster sales. Now each has to wait as buyers age into their 50s and 60s to see whether the step up to more expensive models works. If not, each will have made a terrible business decision.

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