Bloomberg

(Bloomberg) -- Mercedes-Benz remains on course to reclaim the luxury-car lead this year for the first time in a decade after sales rose at more than twice the pace of arch-rival BMW through July, boosted by a sportier lineup and a new crop of SUVs.

Deliveries by Mercedes jumped 12 percent to 1.17 million vehicles in the first seven months of the year, compared to a 5.6 percent increase for BMW AG’s namesake brand. That put Mercedes more than 30,000 cars ahead of its rival. Third-place Audi gained 5.2 percent to 1.1 million vehicles.

The three German carmakers are tussling over the top spot in global sales that BMW has held since 2005. Mercedes is set to move to No. 1 for the year after bulking up its offering of sport utility vehicles with additions such as the GLC crossover and introducing a new version of its E-Class business sedan. BMW won’t refresh its E-Class competitor, the 5-Series, until next year, and the new version of its top-of-the-line 7-Series has struggled to compete against the Mercedes S-Class.

“It would appear to be inevitable that BMW is losing its lead this year,” said Stuart Pearson, a London-based analyst at Exane BNP Paribas. “They’re at a weaker point in their product cycle.”

While sales are important, manufacturers have pledged to preserve their profitability by resisting the temptation to use discounts to achieve delivery targets. During the second quarter, Daimler AG’s Mercedes-Benz Cars unit, including the Smart city car brand, reported a 10 percent return on sales after adjusting for special items. Audi’s margin, also adjusted for special items, was 8.4 percent. BMW’s return on sales from carmaking was 9.5 percent.

To contact the reporter on this story: Elisabeth Behrmann in Munich at ebehrmann1@bloomberg.net. To contact the editors responsible for this story: Chris Reiter at creiter2@bloomberg.net, Naomi Kresge, Tom Lavell

©2016 Bloomberg L.P.

bloomberg

 Bloomberg