In a dynamic year for the automotive sector, 2025 witnessed significant shifts and strong performances within the luxury car segment in the United States. BMW, a prominent German automaker, clinched the top position, demonstrating robust sales figures and outpacing its closest competitor. Meanwhile, several other luxury brands experienced varying degrees of success and challenges, influenced by market trends, electric vehicle adoption, and evolving strategic plans for future growth and competition.
Luxury Automotive Market: 2025 Performance Overview
In 2025, the American luxury vehicle market saw a fierce contest for dominance, with BMW ultimately securing the leading position. The Bavarian powerhouse moved an impressive 388,897 units, marking a 4.7% increase in sales and positioning itself as the top-selling luxury brand. Lexus, a Japanese luxury marque, followed closely, capturing the second spot with sales totaling 370,260 vehicles.
Mercedes-Benz, another German titan, registered 303,200 sales, a decrease from its 2024 performance. A notable development was Cadillac's surge, with sales climbing by 8.3% to 173,515 units, allowing it to surpass Audi. Conversely, Audi faced a considerable setback, experiencing a 16% decline, resulting in 164,942 sales.
Electric vehicles played a significant role in these outcomes; EVs constituted a substantial 28.3% of Cadillac's sales and 10.9% of BMW's. However, the discontinuation of the federal EV tax credit in the U.S. in September led to a noticeable slowdown in EV sales during the final quarter of the year. Beyond the top five, brands like Acura, Volvo, and Lincoln reported more modest sales, with Acura's sales increasing by a slight 0.8% to 133,433 units, Volvo seeing a 3.0% dip to 121,607, and Lincoln growing by 2.0% to 106,868 units. Infiniti, under Nissan, faced one of the steepest declines, with sales plummeting 9.0% to just 52,846, a figure significantly below its pre-pandemic levels. In contrast, the Korean luxury brand Genesis, celebrating its tenth anniversary, achieved a substantial 9.8% increase, selling 82,331 vehicles and surpassing Infiniti.
Looking ahead, luxury manufacturers are gearing up for heightened competition. Infiniti plans to introduce new models to regain its footing and annual sales of over 100,000 in the U.S. Mercedes-Benz harbors ambitions to exceed 400,000 units annually in the coming years, aiming to unseat BMW. Audi, targeting global sales of over two million cars, is considering establishing its first U.S. production facility to mitigate the impact of tariffs that heavily affected its 2025 sales. These brands are not only contending with each other but also with shifting consumer preferences globally, as evidenced by a decline in luxury mid-size sedan sales in Europe, pushing automakers to adapt their strategies for sustained growth.
The competitive landscape of the luxury automotive market is a fascinating indicator of economic trends, consumer desires, and technological advancements. The 2025 sales figures underscore the dynamic nature of this industry, where innovation, strategic market positioning, and adapting to evolving consumer demands, especially concerning electric vehicles, are crucial for success. The intense rivalry among leading brands like BMW, Mercedes-Benz, and Audi, coupled with the rising challenge from brands such as Genesis, highlights a vibrant market ripe for further evolution and disruption. This ongoing competition ultimately benefits consumers, who are presented with increasingly sophisticated and diverse options in the realm of luxury automobiles.