German carmaker Audi reported booming sales for August, making the month the best-ever in company history. Audi's premium A3 compact car is billed as the company's next top-seller.
Deliveries in August surged 14.9 percent on the same month a year ago, as Audi continued growing in all regions of the world, the German carmaker announced Monday.
As customers bought 108,100 Audi cars last month, total sales for the past eight months of 2012 reached 961,000 vehicles, up 12.7 percent compared with the same period in 2011, the subsidiary of Germany's biggest auto maker Volkswagen said.
Audi AG (NSU) trimmed Bayerische Motoren Werke AG (BMW)’s lead in 2012 luxury-car sales to just 2,110 vehicles in August, threatening BMW’s seven-year hold on the top position in premium auto deliveries.
The Volkswagen AG (VOW) luxury brand boosted eight-month sales 13 percent to 961,000 vehicles, compared with BMW’s 7.8 percent increase to 963,110 autos, according to the two companies’ monthly sales reports. BMW, the world’s largest-maker of luxury cars, led by 40,513 vehicles through August of last year.
VW is reaping the benefits from pouring 20 billion euros ($25.6 billion) into research and development at Audi since 2002. The luxury brand now sells 12 model lines, twice what it had in 2003, including three sport-utility vehicles, the A1 compact and the R8 sports car. Audi, which ranks second in premium-vehicle deliveries since overtaking Daimler AG (DAI)’s Mercedes-Benz in 2011, has a goal of beating BMW by 2020.
Audi is likely to overtake BMW several years ahead of that target unless “there are surprising shifts in market share which I don’t expect, especially in China,” said Daniel Schwarz, a Frankfurt-based Commerzbank analyst. “They are the strongest growing luxury brand, and they just launched the A3, which is close to being their best-selling car in a peak year.”
The updated A3 hatchback went on sale in Germany in August, three weeks ahead of Mercedes’ A-Class. Mercedes plans to expand its lineup of compacts from two to at least five in the coming years, and has opened a new plant in Hungary dedicated to building smaller models. The A3, which made up 14 percent of Audi’s 2011 deliveries, starts at 21,600 euros, undercutting the A-Class’s base price of 23,978 euros.
“There will be more A-Class derivatives over the coming years,” said Commerzbank’s Schwarz. “But the A3 is established in the market and will take the lead among the three brands, helping Audi to keep its sales momentum.”
Volkswagen advanced 70 cents, or 0.5 percent, to 142 euros in Frankfurt trading today. Munich-based BMW gained 0.9 percent to 58.53 euros, while Daimler fell 0.8 percent to 38.77 euros.
The 102,730 vehicles BMW sold in August fell short of the 108,100 sold by Audi, which also passed the BMW brand in deliveries in April and July. The VW unit’s delivery growth was led by jumps so far this year of 33 percent in China and 18 percent in the U.S., the world’s two biggest auto markets.
“Every month the figures are surprisingly good,” said Frankfurt-based Silvia Quandt analyst Albrecht Denninghoff, who rates VW neutral. “Audi’s growth is overwhelmingly because of China, with the U.S. also playing a role.”
I gotta admit - I've made my contribution to this figure as I updated my A4 last month!