One Characteristic of the U.S. Premium New Vehicle Marketplace: Consistency

Wednesday, July 14, 2010 by Tom Libby
The "pecking order" of the premium makes, based on retail registrations (to individual consumers), has remained remarkably consistent over the past 5+ years. From 2005 through this past April, the same five luxury market brands have occupied the top five spots every year. Further, the top three - Lexus, BMW and Mercedes-Benz - have ranked one, two and three each and every full year, and the fourth and fifth place finishers, Acura and Cadillac, have also occupied one or another of those spots every year. These five premium brands together have accounted for more than two thirds of all luxury market retail registrations every year as well.

From 2005 through 2009, Lexus, BMW and Mercedes-Benz ranked one, two and three, respectively, but through the first four months of this year, Mercedes-Benz is edging out its German rival to claim the number two spot. However, Mercedes-Benz was number two at this time a year ago as well, but finished the year in third place. 

Among the top three marques, each has its own traditional area of strength, with BMW being strong in small cars, Mercedes-Benz doing well in the midsize premium sedan segment, and Lexus prevailing in the crossover market. But Lexus's superior crossover results (40% of the brand’s total April 2010 retail registrations, more than double the registrations of both X Series models combined and close to double the registrations of the ML and GLK combined) have given it a leadership position that seems unassailable. The Lexus RX benefits from having been on the market since 1998 and therefore having a large pool of potential re-purchasers, frequent styling updates, a hybrid version, and a reputation for stellar quality, reliability and customer service.



Posted by Tom Libby, PolkInsight Advisor, Polk (07.14.2010)


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