Sales of German Brands Climb But Market Share Dips

by Joseph Szczesny | January 12, 2024

With their market share under pressure, German brands Audi, BMW and Porsche succeeded in posting record sales for 2023 as the industry had its best year since the pandemic crushed sales and the supply chains.

Mercedes-Benz saw its EV sales rise 248% in 2023. They accounted for 15% of all new vehicle sales.

Volkswagen held its own, but Mercedes Benz slipped, making only meager gains despite launching new EVs into the U.S. market.

Mercedes-Benz sales flat

Mercedes-Benz reported this week its sales increase 2% from the fourth quarter 2022 with 90,014 vehicles sold. Total 2023 total sales of 351,746 units, up by 0.2% compared to 2022. Sales of Mercedes-Benz electric vehicles grew by 248% in 2023 compared to 2022 with 43,202 units. And comprised 15% of overall passenger vehicle sales in 2023.

Mercedes-Benz Vans reported Q4 2023 sales of 17,701 units, bringing MBUSA to a total of 90,014 vehicles for the quarter. Sales in the top-end segment is up 15% for 2023 compared to 2022 with a total of 94,391 units sold.

“Our 2023 sales results demonstrate another year of strong brand and volume growth for Mercedes-Benz USA, Dimitris Psillakis, president and CEO of Mercedes-Benz USA said.

“We have and will continue to focus relentlessly on transforming both the digital and physical experience for our customers, whether revitalizing stores with our dealer partners or building world-class digital tools that underpin our award-winning product portfolio.

Mercedes-Benz reported its sales increase 2% from the fourth quarter 2022 with 90,014 vehicles sold.

“And with the all-new E-Class, CLE, AMG GT, G-Class with Electric Technology, eSprinter and more arriving at dealerships in the months ahead, 2024 is poised for even greater success,” he added.

VW enjoys jump

Volkswagen sales increased 9.3% compared to last year with Q4 2023 sales alone growing by 39.9% over 2022 as production increased at its plant in Chattanooga, Tennessee.

Growth was fueled largely by sales of the battery electric ID.4 increasing 84.2% year over year as well as Atlas sales by 13.7% compared with year-ago results as well as Atlas Cross Sport by 22.2%, according to the company’s VOA sales reports.

In the fourth quarter of 2023, BMW sales in the U.S. totaled 107,881 vehicles, a 6% increase from the 101,738 vehicles sold in the fourth quarter of 2022. For the full year 2023, BMW sales increased by 9% on total sales of 362,244 vehicles compared to the 332,388 vehicles sold in 2022. This represents a new annual record for BMW sales in the U.S.

BMW post record sales with help from EVs.

Following the market launch of the first-ever BMW i5 in November, BMW now offers four full battery electric vehicles in the U.S. — the BMW i4, BMW i5, BMW i7 and BMW iX. BMW sold 14,374 battery electric vehicles in the fourth quarter of 2023, a 65.4% increase over the 8,689 battery electric vehicles sold in the fourth quarter of 2022.

Volkswagen sales increased 9.3% compared to last year with Q4 2023 sales alone growing by 39.9% over 2022.

For the full year 2023, BMW sold 45,417 battery electric vehicles, which represents 12.5% of total sales for the year.

In addition, the company sold 25,318 plug-in hybrid electric vehicles in 2023, bringing the total number of electrified vehicles sold to 70,735, or 19.5% of total sales.

“We attribute the success of 2023 to two main factors – the strength, breadth, and quality of our product line-up, and the close collaboration with our national dealer network,” said Sebastian Mackensen, president & CEO, BMW of North America.

“We excite and inspire our customers, regardless of drivetrain. Whether they prefer to drive one of our highly efficient internal combustion vehicles, a fully electric vehicle, or plug-in hybrid electric vehicle, we are delivering the ultimate driving experience with every drivetrain, in every segment.”

Small cars make big leap

For the full year 2023, Mini brand sales increased by 13.5% on total sales of 33,497 vehicles.

Mini brand sales in the U.S. totaled 10,728 vehicles in the fourth quarter of 2023, an increase of 4% vs the 10,319 vehicles sold in the fourth quarter of 2022. For the full year 2023, Mini brand sales increased by 13.5% on total sales of 33,497 vehicles compared to the 29,504 vehicles sold in 2022.

The combined market share of German brands appears to have slipped to roughly 8.2% in 2023 from approximately 8.5% as Japanese and South Korean brands gained popularity and the pickup trucks sold by Ford and General Motors continued to keep pace with the market.

Additionally, Tesla, the maker of electric vehicles, which has built its brand at the expense of German carmakers, continues to sell in key U.S. markets, particularly in California where German brands were dominate.

Porsche Cars North America reported retail deliveries in the United States totaled 75,415 cars — a new record — and a 7.6% increase versus the previous record set in 2022.