PRESTIGE car-makers are moving increasingly into ground previously occupied by high-volume Japanese car companies, tempting small-car buyers with prestigious badges and European style.

The intrusion is seen particularly by companies such as Audi and BMW that a decade ago had few offerings in the sub-$60,000 market.

Now, 53 per cent of Audi’s passenger car and SUV sales are in the sub-$60,000 price range, reaching to buyers who previously may have bought vehicles from Japan or Korea.

It’s the same story with BMW, who has doubled its sales in the segment, with the price range now accounting for 35 per cent of its passenger car and SUV range.

Lexus now has 21 per cent of sales in the under $60,000 price range, while 38 per cent of Volvo sales and 27 per cent of Infiniti buyers come from the less-expensive end of the car market.

The growth is attributed to prestige brands putting an emphasis on volume models and more brand-conscious consumers seeking a prestige badge at an affordable price.

As prestige brands grow their market share, dealers have the opportunity to attract first-time owners and then maintain a relationship with the customer through successive models.

Although, it also happens in reverse, but with less success. Hyundai’s Genesis brand – which combines a very high standard of luxury and build quality – competes with the Mercedes C-Class on price but is as large as the German brand’s E-Class.

However, it has only sold 57 units this calendar year to the end of April, eight per cent of the E-Class’ 691 sales.

By Neil Dowling