Mercedes-Benz sales hit 12-year low in Australia amid luxury-car slowdown: VFACTS 2024

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Mercedes-Benz sales in Australia have slumped to their lowest levels since 2012, amid a decline in the luxury-car market that saw rivals Audi, Lexus and Volvo – but not BMW – also hit reverse.

Data published today by the Federal Chamber of Automotive Industries shows BMW was the top-selling luxury-car brand in Australia last year, after ending Mercedes-Benz’s 11-year run at the top a year earlier.

However, all but a handful of top-selling luxury marques recorded a drop in deliveries in 2024, following a record 2023 for the likes of Volvo and Lexus.

Sales of all new vehicles grew by 1.7 per cent last year – as car brands cleared backorders placed years ago – but demand for new vehicles in showrooms has declined amid higher interest rates across most manufacturers.

MORE: Australian new-car sales in 2024: Annual record barely broken despite drop in demand

Audi recorded the largest year-on-year decline – in percentage terms – of the top luxury brands, down 19.5 per cent in 2024 to 15,333 deliveries.

It was influenced by a change-over from old to new versions of popular models such as the A3 (down 28.4 per cent to 2375 sales), though its most popular model, the Q3 small SUV, recorded a 23.3 per cent increase year-on-year to 5497 deliveries.

In sales volume terms, Mercedes-Benz Cars was hit hardest, down 4326 vehicles or 17.8 per cent in 2024 to 19,989 deliveries – its lowest annual sales since 2012.

It is close to half of the brand’s sales record – 37,068 examples in 2017 – and its sixth year of consecutive sales decline.

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Even with its commercial-van division included (for a total of 24,831 sales, down 13.9 per cent), the German car giant would still fall behind long-time foe BMW, which was instead up 0.6 per cent in 2024 to 26,341 deliveries.

The circa-$400,000 G-Class off-roader was one of Mercedes-Benz’s only models to avoid a sales decline – up 6.9 per cent to 421 examples – alongside a 65 per cent spike for the GLA small SUV, amid improved supply and a new special edition.

The EQE SUV and EQS SUV electric vehicles are also up 201 and 127 per cent respectively, though they were not on sale for all of 2023.

But the A-Class is down 16.5 per cent, the C-Class sedan is down 26 per cent, the GLC SUV range is down 18.3 per cent, and the GLE SUV range is down 44 per cent. A company spokesperson cited “a general downturn in the luxury car market globally,” to which “Australia is no exception.”

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Alongside a switch to fixed prices for new cars three years ago, Mercedes-Benz cars have risen sharply in price – albeit offset with additional equipment.

The most affordable A-Class hatch now priced from more than $60,000 drive-away, compared to about $47,000 five years ago. In that time, sales have dropped by 57 per cent, from 4689 deliveries in 2019 to 1997 in 2024.

And the latest version of its top seller, the GLC mid-size SUV, launched two years ago as a single model grade priced from more than $110,000 drive-away, up from about $85,000 to $90,000 for the previous cheapest model with less equipment, space and power.

BMW has also increased prices for its newest models – the most affordable X3 SUV now starts from more than $90,000 drive-away, up from about $75,000 five years ago, though again for a car with less equipment, space and power.

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It seems BMW customers have been more receptive to the increases, as its sales are up 0.6 per cent year-on-year, though some models – including the 1 Series hatch and 3 Series sedan/wagon – are down more than 20 per cent.

However, BMW sales would be in the red if not for one model – the i4 electric car, which reported a 484 per cent increase in 2024 – from 353 to 2062 deliveries – helped by a new entry-level model eligible for lucrative tax exemptions under novated leases.

Without it, the German brand would have been down 6 per cent.

It would have been a decrease approaching Lexus (down 10.2 per cent to 13,642 cars) and Volvo (down 20 per cent to 8898 cars), both of which came off record years in 2023.

The Japanese and Swedish-badged brands would have recorded larger sales declines if not for the arrival of new nameplates – the Lexus GX (868) and LBX (1470), as well as the Volvo EX30 (2129) – as their other top sellers were down year-on-year.

Alfa Romeo reported its lowest sales since 1998 – with 561 deliveries, down 21.6 per cent year-on-year – while Hyundai-owned upstart Genesis posted its first decline since 2018, with 1400 deliveries (down 26.9 per cent).

Land Rover was down 6.1 per cent to 7910 sales – and about 42 per cent behind its record of 13,597 deliveries set in 2016 – with all models bar the Discovery Sport and Range Rover Evoque in decline.

As the brand prepares to ‘reboot’ with a new range of more expensive electric cars, Jaguar sales in Australia grew in 2024 after six years in decline, rising by 27.9 per cent – albeit from a low base to only 743 cars, well down on its record of 3008 in 2016.

Porsche was another of the few luxury brands to report sales growth last year, up 16.1 per cent to a record 7029 deliveries.

It was driven by a 13.6 per cent increase for its top seller, the Macan (to 3323) – despite a change-over from old petrol to new electric models – as well as record 911 sports-car sales, up 40.3 per cent to 783 cars.

And it appears not all car buyers are affected by a cost-of-living crisis, as marques at the top end of town also reported growth.

The data shows increases in deliveries for Lamborghini (273, up 13.3 per cent) and Ferrari (246, up 14.4 per cent).

However, Maserati sales nearly halved year-on-year – down 40.9 per cent, from 638 to 377 – amid a similar decrease for its most popular model, the Grecale SUV.

Luxury-car sales in Australia (with change vs 2023, and annual records)

• Alfa Romeo – 561, down 21.6 per cent (sales record 2513, set in 2002)
• Aston Martin – 154, down 1.9 per cent (sales record 167, set in 2018)
• Audi – 15,333, down 19.5 per cent (sales record 24,258, set in 2016)
• Bentley – 183, down 20.1 per cent (sales record 229, set in 2023)
• BMW – 26,341, up 0.6 per cent (sales record 28,028, set in 2016)
• Ferrari – 246, up 14.4 per cent (sales record 257, set in 2019)
• Genesis – 1400, down 26.9 per cent (sales record 1916, set in 2023)
• Jaguar – 743, up 27.9 per cent (sales record 3008, set in 2016)
• Lamborghini – 273, up 13.3 per cent (new sales record, beats 241 cars in 2023)
• Land Rover – 7910, down 6.1 per cent (sales record 13,597, set in 2016)
• Lexus – 13,642, down 10.2 per cent (sales record 15,192, set in 2023)
• Lotus – 155, down 15.3 per cent (sales record 183, set in 2023)
• Maserati – 377, down 40.9 per cent (sales record 740, set in 2017)
• Mercedes-Benz Cars – 19,989, down 17.8 per cent (sales record 37,068, set in 2017)
• Mini – 3982, down 7.2 per cent (sales record 4289, set in 2023)
• Polestar – 1713, down 30.3 per cent (sales record 2463, set in 2023)
• Porsche – 7029, up 16.1 per cent (new sales record, beats 6052 cars in 2023)
• Rolls-Royce – 54, up 10.2 per cent (sales record 60, set in 2022)
• Volvo Car – 8898, down 20 per cent (sales record 11,128, set in 2023)

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