Aussie 3 Series sales slip continues

BMW's 3 Series is fighting a losing battle in Australian showrooms. Although the company’s top-selling model, it is now out-sold by a ratio of nearly two-and-a-half to one by the Mercedes-Benz C-Class.

Sales of the current (F30) 3 Series have been in decline for nearly 12 months with 2014 figures showing the model as finishing 3108 units down on the strong-selling C-Class (sedan, wagon and coupe variants). Last year BMW Australia sold 4588 3 Series, against Mercedes-Benz’s 7696 C-Classes.

For BMW, the updated LCI (or Life Cycle Impulse) and its suite of new features cannot come soon enough, though it is not expected in local showrooms until at least October.

Year to date June 2015 figures show the gap between the top two German marques is growing even wider. Just 2012 3 Series variants have been registered in Australia against 5841 C-Class models.

It's a trend BMW says it hopes the updated 3 Series LCI will help address.

"We now have a very good product in place, and we have concentrated on the points that we feel could create added value," BMW 3 Series product manager, Dr Christian Voigt, told motoring.com.au.

"The key thing from our perspective is 'how does it feel for customers', and I can say on that point this is the best 3 Series that we've ever built."

Voigt went on to say that it is important to consider the "family" of 3 Series models when factoring sales figures, something the VFACTS report tends to mask.

"If you only compare the C-Class to the 3 Series, the sales figures may be neglecting that we also have a 4 Series that is selling quite well, [and] we have the 4 Series Gran Coupe, [and] we have the 3 Series Gran Turismo," said Voigt.

"It's something that must be considered if we are to compare apples with apples. From a product point of view, the 3 Series range is a very good and competitive product."

Sales of the wider 3 Series family — 3 Series Gran Touring, 4 Series and 4 Series Gran Coupe —tally is 3688 vehicles, closing the gap to the C-Class to 2153 units.

"We have a wide range of vehicles that appeal to a wide range of buyers," stated BMW Australia general manager of communications, Lenore Fletcher.

"We’re able to keep people in the brand because of the breadth of our offerings, and we’re pleased with our progress. BMW sales are up 16 per cent year-on-year, MINI is up nearly 60 per cent and Motorrad [motorcycles] is up 20 [per cent].

"And while there’s always a downturn in sales immediately prior to a major model change, year-to-date as of the end of June 2015 show our best June sales on record, our best half-year sales to date and our best ever end to an Australian financial year.

“We’ve also had record sales of our X models and wide acceptance of our 2 and 4 Series Coupes,” Fletcher stated.

BMW Australia currently offers it entry-grade 316i sedan from $53,800 (plus on-road costs), a significant $7100 cheaper than the base model Mercedes-Benz C 200 (from $60,900). But sales figures suggest that price is not the deciding factor when it comes to buying a mid-size prestige vehicle, the C-Class also out-selling cheaper models from Audi (A4 from $55,500 and 1360 sales YTD) and Lexus (IS from $54,000 and 1146 sales YTD.

It's a point Mercedes-Benz Australia Pacific's senior PR manager David McCarthy supports, saying prestige vehicle buyers are attracted to more than price alone.

"You have to look at design, equipment levels, and the driving experience; and for the C-Class I think that mix is right," he proffered.

"BMW's 3 Series update will try and address some of that [shortfall], but it's obvious the C-Class really has struck a chord with buyers."

Voigt agreed with McCarthy's point, but argued BMW customers look beyond looks alone.

"The feedback we have from some markets is that the changes in design have been really expansive in the C-Class, and that's what attracts people in the first place," Voigt admitted.

"But sales performance is influenced by a lot of factors, like design, the timing of the launch, [and] separate deals that we are not aware of.

"For us, it's really important that we have the true 3 Series characteristics, and that is our core message – our customers prefer the precision and the resources that have gone into this car, and I am really convinced of this."

Convinced or not Mercedes-Benz still has the numbers Down Under, with McCarthy saying supply limitations meant the model's potential was not being realised.

"We did 900 C-Class sales, excluding coupe, in June, and 1000 a month is possible if we had the supply. The demand is there, and this shows BMW has a lot of ground to make up," he stated.

"C-Class is selling at almost half of the Toyota Camry's volume... And when you realise the C 63 is going to add more [to the sales tally], and that we think the C 350 plug-in is going to be really successful, then BMW really needs to take a good, long, hard look at our tail-lights..."

Mercedes-Benz sales top those of BMW in every segment excluding large SUV where the X5 and X6 outpace the M/GLE-Class by just more than two to one.

Mercedes-Benz is also currently without a competitor to BMW's medium SUV segment X3 and X4, though McCarty says the pending arrival of the GLC-Class "is going to shake them up a bit".

"We're not a one-trick pony," said McCarty.

"The sales of our compacts models [A-Class, B-Class and CLA-Class] combined outsell C-Class, and in all the time it has been on sale, it has only ever been out-sold by the 3 Series for just more than two months...