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Mercedes widens luxury sales gap on strong early CLA demand

Mercedes-Benz CLA sales have been booming, with the Stuttgart-based manufacturer moving 2,300 of the sleek four-doors in its first week on sale. That is astonishing. Mercedes moved nearly twice as many CLAs (which start at $29,900) in one week than Jaguar, a brand that is on a very solid roll, sold in all of September. Ignoring the price differences between the Jag line and the CLA, that is still wildly impressive.
Mercedes has been pushing the CLA in television ads, using a shortened version of its Super Bowl spot, which starred William Dafoe, Usher and Kate Upton. "As the bargain entrance into the Mercedes portfolio, we weren't sure how luxury buyers would react," Kelly Blue Book auto analyst Alec Gutierrez told Bloomberg.
The CLA push was just part of MB's 6.7-percent increase in September sales, which were also helped along by a 17-percent jump in E-Class sales. That surge has allowed Mercedes to widen its 2013 sales lead over its rival, BMW, to 2,491 cars, according to Bloomberg. If CLA sales continue at this rate, we can only expect that margin to grow.

Mercedes making aggressive plans for Chinese market

Mercedes-Benz is preparing a major product offensive to counteract lagging sales in the Chinese market, aiming 20 new or updated models at the People's Republic in the next two years, according to a report by Reuters. The plan is part of MB's so-called 2020 Initiative, which will see the Stuttgart-based manufacturer dump 2 billion Euros ($2.67 billion) into its Chinese market vehicles in a bid to boost sales to 300,000 units by 2015.
Were it to succeed, China would become the largest market for the Silver Arrow, outpacing Germany and the United States. Leading the charge will be the redesigned E-Class, which is set to launch in China this week. That will quickly be followed by the S-Class, and eventually by the GLA-Class in 2014.
Mercedes has struggled in China, especially relative to its German competition, BMW and Audi. Where Mercedes saw a mere four-percent increase in 2012 sales to 206,150 units, Audi was up a staggering 32 percent, while BMW's numbers jumped 41 percent. While some voices, according to Reuters, accuse Munich and Ingolstadt of boosting their numbers through hefty incentives, the fact remains that Mercedes was just walloped by its competitors last year.

BMW expects China to pass US as its top market in 2013

When you combine two billion citizens, 100 cities with more than a million inhabitants and an economy that's as unrestrained as Jim Cramer on an Adderall binge, China's explosive auto industry growth shouldn't be a huge surprise. Audi already lists the communist country as its largest market, while Mercedes-Benz is expecting it to be there in the next few years. Now, according to a report from Automotive News, BMW is expecting the People's Republic to overtake the United States in sales by the end of 2013.
We already discovered the extent that BMW is going to in establishing a dedicated Chinese stronghold, when we explored BMW's Shanghai-based DesignWorks studio ahead of April's Shanghai Motor Show. And while we argued that DesignWorks Shanghai hasn't really borne fruit, it isn't due to a lack of sales.
BMW China has seen a 16-percent jump in year-over-year sales, lead by a 28-percent gain in 5 Series sales. Part of BMW's growth strategy comes from an ever-expanding dealership network. Remember those 100 cities we mentioned with over one million people? According to Karsten Engel, CEO of BMW's Chinese operations, those 100-million-plus city dwellers don't have access to a premium dealership.