SANTA MONICA, California — Sales of luxury crossovers continue to take a beating as consumers focus on value, according to a new report on Edmunds' AutoObserver.com. The report finds that sales of the BMW X3 dropped 66 percent this year compared with 2008, while sales of the Volvo XC90 declined 53 percent in the same period.
Other models which have taken a big hit in terms of declining sales are the Acura MDX, Acura RDX, Cadillac SRX, Infiniti EX35 and Land Rover LR2, the report points out.
"The luxury crossover segment has taken a beating in sales because most of today's consumers are concentrating on value," said Jessica Caldwell, senior industry analyst at Edmunds.com. "Big profits were anticipated for new models introduced into this segment and that is just not proving to be the reality for most."
The Edmunds' study provides a micro look at a larger trend that is tracking the rise of Asia as the world's biggest consumer of luxury goods.
A recent study by consulting firm PriceWaterhouseCoopers says that global sales of luxury goods are predicted to fall 10 to 15 percent in 2009 as consumers continue to tighten their belts. The study found that by 2015, China is forecast to become the world's top buyer of luxury goods. Sales of luxury goods in China are forecast to rise 12 percent this year, according to a recent study by Bain & Company. The report underscored that the U.S. and Japan, two of the world's largest markets for luxury goods, are due to see sales fall by 16 percent and 10 percent, respectively.
Inside Line says: Automakers can't seem to convince us to open our wallets, even when they dangle new luxury crossovers in front of us. But China is poised to buck that trend. — Anita Lienert, Correspondent
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roar02ram says:
06:23 AM, 10/28/2009
The only one of the models listed for which declining sales might be a surprise is the MDX. The rest of them were never stellar sellers anyway.
The XC90 in particular is an old, OLD design, and I read somewhere that BMW was artificially limiting X3 production.
I don't think there's anything particularly newsworthy here, UNLESS there's similar information available for stalwarts like the X5, ML350, and RX350 or new introductions like the GLK, XC60, and Q5.
charlesb says:
11:06 PM, 10/27/2009
The Infiniti EX35 never had any sales to begin with. So tanking doesn't mean much there. I think the Volvo XC60 is a much better package for where the market is going vis a vis the larger XC90.