German luxury carmakers find a beacon of light

Daimler AG's Mercedes-Benz, Volkswagen AG's Audi and BMW's flagship BMW brand all posted year-on-year volume gains of above 35 percent in the country in September, they said.

Globally, BMW and Daimler have been suffering double-digit declines this year through August, while Audi has cut its sales contraction to slightly below 10 percent.

"The sales figures for premium carmakers give a better indication of where the market would be were it not for government incentives," said Ulrich Winzen, chief analyst for forecasting and consulting at Essen-based firm R.L. Polk.

"At the latest by the end of 2010 or early 2011, though, luxury carmakers should return to their previous growth paths, albeit from a lower level. Until then, China will certainly help them bridge the gap."

Thanks to the new E-Class saloon that nearly doubled sales to 1,700 units, Mercedes-Benz's volume in China grew by 56 percent to about 6,800 vehicles last month, albeit from a lower base than its two German rivals.

It shifted 1,600 of its top-of-the-line S-Class model that carries fat margins, a gain of 12 percent. Sales of its SUV models jumped 73 percent to 1,200 vehicles.

This helped boost the brand's overall volume in the first nine months by 41 percent to 45,400 vehicles, Kazinform cites China Daily. See www.chinadaily.com.cn for full version.