BMW ended 2025 with a dominant performance in the U.S. luxury car market, delivering 388,897 vehicles—a 4.7% increase from 2024—cementing its lead over rival Mercedes-Benz and Lexus.
Key to BMW’s success was its broad product lineup. The X3 and X5 led sales, but the brand also saw strong demand for 3 Series sedans and M performance models. Even in a tariff-impacted market, BMW’s strategy resonated with American luxury buyers, while Mercedes-Benz struggled to match the momentum.
Mercedes-Benz found some strength in its SUV portfolio. The Alabama-built GLE posted 14% growth over 2024, capped by a 12% fourth-quarter increase. The GLC also recorded a 20% year-over-year gain, keeping Mercedes competitive in premium crossovers. However, commercial vans dropped 14% to 40,000 units, and passenger car sales stagnated as competitors offered aggressive incentives and new models.
Performance models painted a mixed picture for both brands. Mercedes-AMG achieved record sales with 12% growth, the G-Class jumped 26%, the CLE coupe rose 53%, and the entry-level GLA increased 21%. BMW, meanwhile, grew its M model sales and SUVs, maintaining overall momentum despite a 16.7% decline in pure electric vehicle deliveries following the end of federal incentives.
Analysts say BMW’s consistent growth across multiple segments highlights its stronger positioning in the U.S. luxury market, while Mercedes-Benz relied heavily on a few SUV models to sustain competitiveness.
