Australian Car Market – The Luxurious cars at their best


Since the last decade, Australia is seeing a major shift in people’s taste and preferences as far as cars are concerned. People are getting more inclined towards premium German brands

In short, a palpable shift from usability to luxury can be noticed in client’s buying behavior while purchasing a car. The speculation is further cemented by the sales figures. Here is the detailed report on the same:

Kings of the market

When we talk about luxury cars, Mercedes-Benz is prime, unchallenged and unstirred by the competition. But the things are a bit different in Australia if figures are something to believe. With 13% growth, Mercedes-Benz holds the top position but has found a tough contender in BMW, another luxury elite brand with a strong following, that registered a 12% growth in 2016. Rest are not a match as they are way down the competition index. Audi grew by 5% that is less than half the growth enjoyed by Mercedes and BMW.

Sedan Boom

It is the impressive sales figures of its C-Class sedan that brings Mercedes to the fore. It has even surpassed the sales of mainstream cars like Subaru Liberty and Mazda6. If we talk about the types of luxury brands, SUVs certainly ruled the roost with people preferring SUVs of class brands over passenger models of mass brands.

The effort behind the success

Apart from a shift in consumers’ demand, the steady efforts of premium brands are also responsible for sales growth. Luxury cars are clearly eyeing another income section that craves for luxury but is limited by resources. The SUVs with $40K+ price tags saw an acute growth of 45% that shows a clear inclination towards smaller models of luxury brands. Q3 from Audi, X1 from BMW and GLA-Class from Mercedes-Benz can clearly be called the promising princes of SUV market.

Smaller models with bigger volumes

The release of a series of smaller models has further eased the decision of people eyeing the luxury names but concerned about the price tag. With the ex-showroom prices between $30000 and $40000, the smaller models are attracting a huge number of buyers who aspire for luxury brands. Another interesting thing to note here is that more people might be exchanging comfort for luxury. They are not hesitating to exchange their larger cars of general brands to see smaller premium brand cars in their garage.

Favorable market policies

The third major factor that has hugely contributed to the growth of luxury German brands in the Australian car market is favorable tariff policy on imported cars. It can be highlighted that during the first half of 80’s, the import tariffs on cars were as high as 60% but after the latter half of that decade, tariffs saw a steady reduction every year that continued till 2000. Thereafter 2 more instances of tariff reductions, one in 2005 and the other in 2010 caused a further decline of 10% in tariffs. So, it would not be an exaggeration to say that reduction in import tariffs has played the foundational role in the steady increase in sales of the luxury car models.

The emerging SUV market

The SUV market also saw an increasing popularity of 2 new contenders: Jaguar with its first offering in the form of the F Pace and Land Rover already maintaining a decently strong position with its Discovery Sport and Evoque models, that are luring a number of Australians fancying these trendy luxury brands.

New entrant

The legendary brands like Aston Martin and Lamborghini have to contend with the new yet strong entrant in McLaren that sold 94 cars in 2016, as opposed to Aston’s 103 and Lamborghini’s 127 units sold in the same period.

Here are top 10 luxury brands of  2016:

  1. Mercedes-Benz
  2. BMW
  3. Audi
  4. Land Rover
  5. Lexus
  6. Volvo
  7. Porsche
  8. Mini
  9. Jaguar
  10. Infinity

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