GLC could become Mercedes-AMG's top seller

Mercedes-AMG is expected to hit a record 7000 sales this year in Australia, eclipsing its previous high of 5200, and the GLC could eventually become its most popular model.

The German luxury performance brand attributes its growth to both the introduction of V6 turbo-powered 43 models and the continuing tradition of Australia being a key market for AMG.

“If the cars arrive and we get them through customs in time and they’re delivered, we should do 7000 units this year,” said Mercedes-Benz Australia Senior Manager of Public Relations, Product and Corporate Communications, David McCarthy at the international launch of the new Mercedes-AMG GLC 63 S in Stuttgart, Germany this week.

Australia is currently vying with Canada for the highest AMG market penetration globally, with AMG sales as a proportion of Mercedes-Benz passenger vehicle sales again topping 20 per cent this year.

“Our allocation problems are less of an issue than they were in the past because we’re running at 20-25 per cent in AMG, and AMG recognise that,” said McCarthy.

Mercedes-AMG sales have already surpassed its 2017 record of 5200 sales so far this year, due mostly to the new E 43 and C 43, sales of which have been almost all additional as the C 63 remains its top-seller.

Four-cylinder AMG sales are also strong. The biggest selling 45 model is the CLA sedan/wagon, followed by the A 45 hatch and then the GLA 45 crossover.

The Mercedes-AMG 43 engine is available across the range in sedan, medium and large SUV, SUV coupe and wagon variants, a line-up which will be mirrored by the twin-turbo V8-powered 63 models once the mid-size GLC 63 S arrives mid-year.

The 375kW GLC 63 S will be introduced in both conventional SUV and SUV coupé body styles and McCarthy said it could eventually outsell the C 63 S sedan to become AMG’s most popular model Down Under.

“Looking at how GLC 43 is selling, yes, I think over time when you look how the trend’s going in the market, GLC could potentially overtake C Class.

“C Class has been pretty consistent, between 500 and 700 a month, depending on supply. Sedans are not so much declining but they’re not growing at the same rate.

“SUVs and pick-ups are really what a lot of people are buying. The GLC 63 could outsell the C 63 in time.”

While GLC models are the second most popular vehicle line in the Mercedes-Benz range, the company doesn’t expect customers to switch from its sedans into SUVs, instead expecting to see continued incremental sales growth moving forward.

Despite its bumper year, however, David McCarthy said the company was cautious about 2018.

“I think the market next year is going to be a lot tougher. I don’t see as much growth as this year but there’ll still be growth.”

Vehicle purchasing patterns have reflected buoyancy in the domestic property market but he said concerns that the property bubble may soon deflate were fuelling changes in lending patterns.

“Finance is not harder to get, but rates are starting to creep up a little bit and acceptance standards are changing a little bit because the banks are uneasy about people having too much debt on their equity package that’s not related to the property.

“It makes it harder for people to service that debt. That’s one of the reasons that the market is becoming tougher, plus we’ve had no appreciable rise increase in wages in the last couple of years. Inflation is relatively low but a lot of people are not seeing more income.”

Despite having a more conservative approach to next year’s sales, Mercedes-AMG is pushing ahead with plans to open its first standalone performance outlet.

Located in Sydney and on schedule to open next month, the dealership will be the first in the country to sell only AMG models in its showroom.