/ 26 May 1997

Luxury cars bear brunt of sales squeeze

MONDAY, 10.30AM

The growth in the small car market, corporate income constraints and changes top fringe benefits taxes have hit the super-luxury end of the new car market, with last year’s sales nearly half of 1995’s figures.

While 1995 sales in the category totalled 1 504, last year only 872 units were sold. And the downward trend continues in this category, represented by the BMW Seven Series, Mercedes-Benz S Class, Audi A8, Nissan Infiniti and Toyota Lexus. In the first quarter only 47 Mercedes-Benz S Class cars were sold, as opposed to 74 during the same period in 1996. BMW sold 72 Seven Series cars against last years 121, while Audi moved 149 A8s after selling 239 in the first three months of last year.