German automakers are most likely to gain a wider advantage in the European market this year, and Daimler AG is all set to reap maximum benefit out of it. Half a decade since the collaboration with Chrysler, the company has posted its best profit margin this year. Yet, the company still lags behind two German luxury cars in terms of rankings.

The analysis findings go on to say that Fiat and French carmakers are most likely to face severe competition from Asian heavyweights such as Hyundai Motor Co. and Toyota Motor Corp., which will in turn work in Daimler AG’s favor. In 2011 alone, BMW, Volkswagen and Daimler managed the sale of a record number of cars, with their markets expanding significantly in China.

The three aforementioned companies owe their fast-paced growth to their range of updated models – the Audi A3 compact, the BMW 3-Series sedan and the Mercedes SL Roadster for instance. According to Zurich-based analyst Reto Hess, these German automakers possess higher structural margins primarily because they belong to the premium segment and in turn have better pricing power than their mass-market counterparts.

via inautonews