Nov. 7 (Bloomberg) -- Bayerische Motoren Werke AG and Daimler AG's Mercedes-Benz Cars unit, the world's top two makers of luxury cars, sold a combined 31,000 fewer vehicles last month as the credit crunch discouraged large purchases by consumers.

BMW, which also owns the Mini and Rolls-Royce auto brands, said today that sales fell 8.3 percent to 113,005 cars and sport- utility vehicles from 123,300 vehicles a year earlier. Stuttgart, Germany-based Daimler said deliveries of Mercedes-Benz, Smart, and Maybach vehicles fell 18 percent to 93,800 from 114,600.

``Generally, we're feeling the effects of the poor market developments,'' while models nearing renewal are adding pressure, Verena Mueller, a spokeswoman for Mercedes-Benz, said in a telephone interview. Sales of the E-Class sedan fell 35 percent to 12,100 in advance of the introduction of a new version in March, even as the model kept its position atop the segment in Germany, she said.

Auto sales in the U.S., BMW's largest market and Mercedes's second-biggest, plummeted 32 percent in October to the lowest monthly total since January 1991. BMW scrapped its 2008 profit target on Nov. 4, while Daimler slashed 1 billion euros ($1.28 billion) from its 2008 earnings forecast on Oct. 23. BMW plans to cut production by 65,000 cars and SUVs, while Mercedes is curtailing output by more than 45,000 vehicles.

`Extremely Challenging' Market

BMW anticipates a decline in vehicle sales for the full year because of ``the extremely challenging conditions,'' Ian Robertson, the Munich-based carmaker's sales chief, said in a statement today, reiterating a forecast released Nov. 4. ``The retail gains made in our growth markets were unable to fully offset'' declines in western Europe, Japan and the U.S.

Mature markets hurt sales at both carmakers. BMW posted a 12 percent drop in western Europe, a 5 percent decline in the U.S. and a 29 percent plunge in Japan. Mercedes-Benz Cars' sales dropped 18 percent in western Europe, 25 percent in the U.S. and 34 percent in Japan to 1,800.

China was among the few markets to provide increases. BMW's deliveries in the country climbed 36 percent to 5,280 vehicles, while Mercedes-Benz's jumped 43 percent to 3,700.

Year-to-date global sales at BMW gained 0.7 percent to 1.23 million vehicles, as deliveries of Mini cars advanced 11 percent while demand at the BMW brand slipped 1.1 percent. Mercedes-Benz Cars' year-to-date deliveries rose 1.6 percent to 1.07 million cars and SUVs because of a 41 percent jump for the Smart brand, with the Mercedes-Benz brand reporting a 1.7 percent decline.

To contact the reporter on this story: Chris Reiter in Berlin at creiter2@bloomberg.net

Last Updated: November 7, 2008 07:29 EST