Australian luxury car market in trouble

Article on CarAdvice: "Vehicle sales in Australia have returned to where they were five years ago, and it's the premium market battling most for traction"

2019 YTD Mercedes -18%, Audi -27%, Porsche -50% and so on.

Why is that? Overall softer market conditions are only one reason and it would be too easy to blame that as the main issue. Many challenges are created within the companies themselves:

• an increasingly complex range and options make it harder for customers to decide
• equipment levels and warranties are sometimes lagging behind mid-market competition
• a sales shift towards the lower-end models - where a lot of value-for-money competition from Japan and Korea is positioned - waters down the overall positioning of iconic brands
• the incentive push of the last years saturated the market over-proportionally
• new(er) kids on the block like Tesla, Volvo or Alfa Romeo are gaining traction

What is the way out?

Re-focus!

• on your customers
• on your brand
• on your value proposition
• your core range and its differentiating factors

What would be a mistake: slash prices and slide even further into the mid-field.

Here the link: https://www.caradvice.com.au/734435/premium-new-car-sales/