As the overall passenger/SUV market (excluding commercial vehicles) dropped 4.6 per cent for the year, dragged down in no uncertain terms by a 15.9 per cent freefall in passenger car sales, VFACTS figures show that registrations of new prestige and luxury passenger cars fell 18.6 per cent (or 10,722 units) – from 57,545 sales in 2017 to 46,823 – while the growth in SUV sales was nowhere near strong enough to offset the decline.

The premium SUV classes combined pushed up 2.5 per cent (1645 units) last year to leave a new high-water mark of 67,897 sales, but this was still shallower than the 6.4 per cent increase in SUV sales for the entire industry.

Most of the leading prestige brands suffered double-digit sales declines last year, with the runaway market leader Mercedes-Benz Cars falling 13.1 per cent on a still-dominant 32,201 units, and Audi no longer posing a threat to either Benz or second-placed BMW as the four-ringed brand, which up until 2017 had a remarkable 12-year run of record annual sales growth, fell 11.8 per cent (19,416).

BMW stemmed the tide with its sales last year 2.4 per cent in arrears (23,055) – not bad up against the prevailing winds and in light of its 15.7 per cent plunge in 2017 – while Lexus was one of only a few higher-volume prestige brands to keep its head above water, posting 8819 sales for a 0.2 per cent increase and its second-best result ever as it now sets sail for an all-time record come December 31.

Volvo was the clear standout, surging to 6693 sales with a piping-hot 43.0 per cent year-on-year increase due the positive reception of its burgeoning SUV range – its best result since the mid-1970s, when Swedish car-maker was assembling vehicles in Australia.

Elsewhere, Land Rover’s Range Rover collective suffered a 22.8 per cent fall (to 5366 units) – combined sales came in at 10,089 (-23.1%) – as Porsche shed 12.8 per cent (3909), Infiniti 16.4 per cent (649) and Maserati 13.2 per cent (642), while positive returns were made by Jaguar (2679, +7.9%) and Alfa Romeo (1279, +21.0%).

Volvo XC40

In the light-commercial sector, Mercedes-Benz Vans, with its all-new X-Class ute and redesigned Sprinter van, recorded 7336 sales last year, up 35.3 per cent, and among the lower-volume top-end sports-luxury marques, Ferrari (241, +14.8%) and Aston Martin (167, +16.0%) received strong support from their well-heeled clientele.

This shows that there is still underlying strength in the market for highly aspirational brands and those which bring forth desirable new models, and while the 114,720 sales for the prestige/luxury sector in overall terms is relatively strong – about 46,000 more than in 2010, for example – there is no escaping the fact that it stands as 9077 fewer purchases than last year.

Break it down into individual segments and there is an oil slick of red ink, with negative returns in almost every prestige passenger model class where volume really counts – light (3899, -11.1%), small (13,512, -15.9%), medium (17,483, -21.8%), large (3417, -23.8%), sub-$80,000 sportscars (4977, -28.7%) and, to a lesser extent, $100,000-plus sportscars (1685, -2.5%).

AMG GLC63

Positive entries are seen only among the low-volume upper-large flagship cars (821, +46.3%) and premium MPVs/people-movers (1029, +5.6%).

Across the SUV classes, premium large SUVs also took a significant hit last year, falling 16.4 per cent to 17,199 units, which compares to a 2.9 per cent fall for the segment overall with mainstream brands included.

Small SUVs led the way for the prestige sector, accumulating 16,457 sales for a 28.1 per cent increase, while the returns were more modest for the volume-selling medium (32,191, +4.4%) and niche upper-large (2050, +2.3%) SUV categories.

By Terry Martin

BMW X5