Mercedes is winning the luxury market with an unusual strategy

Mercedes-AMG

Mercedes-Benz is having a very solid year.

Even though growth so far this year is flat, the three-pointed star is still setting the pace for the luxury car sales in the US.

For the month of July, Mercedes-Benz's US operation set a new company record with 28,523 cars sold — an increase of 3.6% over the same period last year.

As result, Mercedes is leading the way in sales among the group of companies considered to be "tier one" luxury brands. It's a star-studded group that also includes BMW, Lexus, and newcomer Audi.

"We are continuing to see strong momentum build into the third quarter, fueled by the recent launch of three of our dream cars," Dietmar Exler, Mercedes-Benz USA president and CEO, said in a statement. "The S-Class Cabriolet, SL and SLC Roadsters, teamed with strong momentum for the all-new E-Class, helped us set a new record for July."

What is interesting is that Mercedes is leading the way by selling a ton of cars in a market that craves crossovers and SUVs.

So far this year, Mercedes' best-selling model is the C-Class, with almost 44,000 cars sold, while its third-best-selling model is the E-Class, with nearly 28,000 in sales. That doesn't mean the company's SUVs aren't selling — in fact, they are selling very well.

Mercedes-AMGMercedes' lineup of SUVs — consisting of the GLC, GLE, and GLS — are either on par with or outselling its rivals from BMW and Audi.

Of the "tier one" luxury brands, only Lexus sells more SUVs that Mercedes. After all, the Lexus RX is the king of luxury crossover SUV.

Finishing second in the sales race in July is Lexus with 27,890 cars sold, followed by BMW at 25,777, and Audi at 18,364.

So far this year, Mercedes-Benz US has sold 191,300 cars. Here, too, Mercedes has a lead over the roughly 179,000 cars Lexus and BMW have each sold. Even though Audi sales are up 3.6% through the first seven months of 2016, the VW Group brand sits in fourth place, with 115,298 cars sold.

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