Audi U.S. Sales Climb 23% as Sub-$30,000 A3 Woos Younger Buyers

Source: Audi

Audi posted its 42nd straight monthly sales record, reaching first-half deliveries of 84,349 cars and SUVs, more than its annual total just five years ago. Close

Audi posted its 42nd straight monthly sales record, reaching first-half deliveries of... Read More

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Source: Audi

Audi posted its 42nd straight monthly sales record, reaching first-half deliveries of 84,349 cars and SUVs, more than its annual total just five years ago.

Audi’s U.S. sales rose 23 percent to its best June ever as the Volkswagen AG (VOW) luxury unit’s A3 sedan, which starts at $29,900, attracts younger customers.

Total deliveries climbed to 16,867, including 2,452 A3s, the Ingolstadt, Germany-based automaker said in a statement yesterday. Audi also reported gains of 15 percent from a year earlier for the Q5 sport utility vehicle and 3.6 percent for the A4 sedan.

Audi posted its 42nd straight monthly sales record, reaching first-half deliveries of 84,349 cars and SUVs, more than its annual total just five years ago. While BMW, Mercedes-Benz and Lexus still lead in U.S. luxury sales, Audi is luring buyers in a crucial market for the segment: younger owners new to the brand, said Jesse Toprak, an analyst at Cars.com.

“Audi right now is in the state of really catching on and becoming fashionable in the luxury market,” Toprak said in an interview. “Buyers in key, high-volume luxury markets, especially first-time buyers, prefer Audi more and more because it’s more unique. Not as many people have it.”

Audi has about 11.5 percent of the U.S. market for imported luxury autos, rising from 9.7 percent pre-A3, Scott Keogh, president of Audi America, told reporters on a conference call to discuss June sales. Since the April introduction of the revamped A3, Audi has jumped to fourth place in U.S. luxury sales, passing General Motors Co. (GM)’s Cadillac and Honda Motor Co. (7267)’s Acura brands.

“Luxury is not an in-between place,” Keogh said. “The middle ground is a very tough place to be. You need to have the strong brand first. Everything else follows that.”

First-Half Leaders

Audi still trails its larger rivals by big margins. For the first half, Bayerische Motoren Werke AG (BMW)’s BMW brand sold 157,382 vehicles in the U.S., for a lead of 5,758 over Daimler AG’s Mercedes, which reported 151,624 deliveries.

Last month, Munich-based BMW sold 30,201 vehicles, a 12 percent increase, helped by the 5 Series sedan, which surged 77 percent to 7,940 deliveries. Mercedes rose 8.6 percent to 26,506, helped by a 25 percent gain to 6,500 for the E-Class sedan.

Sales figures for the two brands don’t include Stuttgart, Germany-based Daimler’s cargo vans and Smart cars and BMW’s Mini brand, which aren’t luxury vehicles.

Toyota Motor Corp. (7203)’s Lexus brand posted a June increase of 10 percent to 23,518. Sales more than doubled to 3,932 for the entry-level IS, the Toyota City, Japan-based company said in a statement. For the year, sales have risen 17 percent to 138,689.

GM’s Cadillac reported a 0.1 percent increase to 13,941, with advances of 19 percent to 4,652 for the SRX SUV and 84 percent to 1,907 for the Escalade SUV. Sales of the ATS sedan, winner of last year’s North American Car of the Year award, fell 32 percent to 2,358, Detroit-based GM said.

To contact the reporter on this story: Mark Clothier in Southfield, Michigan at mclothier@bloomberg.net

To contact the editors responsible for this story: Jamie Butters at jbutters@bloomberg.net John Lear, Stephen West

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