BMW brand sales rose 17.3% in May to 29,602. That allowed it to keep pace with sales of arch rival Mercedes. The gain owed a great deal to the success of low-priced cars, at least based on the German manufacturer’s historical pricing.
Source: courtesy of The Car Spy, via Wikimedia Commons
Sales of some of BMW’s most expensive model lines dropped sharply. Sales of 7-Series, the company’s flagship sedan, dropped 40% to 607. The car has a base price of $74,000. Sales of the high-end 6-Series coupe dropped by 561% to 401 — its base price is $75,000.
The BMW mainstay 3-Series product line, along with 4-Series cars coupes, led the improved May results. Sales between the two reached 10,915, up 17.3%. The base price for the 3-Series is $32,750, and for the 4-Series $40,500. Each model sets BMW up to target younger buyers, and buyers who might buy U.S. luxury models that tend to be priced well below the German ones. According to Kelley Blue Book, the 3/4 Series have 15.8% of the “entry level luxury car” market, which puts it ahead of all rivals for the segment.
BMW’s success in the SUV segment also owed itself to low price points. Sales of the X3 SUV rose 168% to 5,723. The increase translated into 3,589 units. Total sales of all BMW models in May rose by 4,372. In other words, the X3 was absolutely essential to the month’s advance. The X3’s sales strength also shows in market share. According to Kelley Blue Book, the X3 has 17.3% of the “luxury compact SUV/Crossover” market, another category in which it leads all rivals.
BMW can claim that it does have a current success outside the entry level of the luxury segment. Sales of its mid-sized sedan 5-Series rose 17.8% in May to 4,752. The 5-Series base price is $49,500. Higher end versions of the model have prices that reach above $70,000, and that is before adding from a long list of options.
The rise in inexpensive car sales has two edges. One is strong unit sales. The other is pressure on prices. According to Kelley Blue Book, BMW’s average transaction price in May was $52,104. That is down by 2.3% from April and by 2.1% from May 2013. The advantages of cheap models are mixed.
ALSO READ: Is There No End to Luxury Car Sales Growth in America?
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