Bayerische Motoren Werke AG retained its rank as the world’s biggest maker of luxury vehicles last year as the German manufacturer and its two closest competitors all broke sales records, propelled by demand in China.

BMW-brand deliveries jumped 13 percent in 2011 to 1.38 million cars and sport-utility vehicles, the Munich-based manufacturer said today in a statement. Volkswagen AG’s Audi placed second with a 19 percent gain to 1.3 million deliveries to overtake Daimler AG’s Mercedes-Benz, which posted an 8 percent increase to 1.26 million cars and SUVs, according to Bloomberg.

Chinese sales growth exceeded 30 percent at all three carmakers, with a 37 percent jump in Audi deliveries turning the country into the biggest market for the Ingolstadt, Germany- based company. The manufacturers are introducing models such as Audi’s updated A4 sedan and Mercedes-Benz’s revamped SL roadster at the North American International Auto Show in Detroit, which is holding its press day today, as BMW seeks to maintain an industry lead that the others have vowed to overtake.

“Given the product momentum and given the regional sales momentum, I see no reason why Audi shouldn’t grow stronger than Mercedes this year, and BMW will also grow stronger,” said Arndt Ellinghorst, a London-based analyst at Credit Suisse who has a “neutral” recommendation on Daimler an “outperform” on BMW and Volkswagen. “China is slowing down, but it is still a market that for the premium makers will grow by about 20 percent this year.”

Group sales at BMW, including its Mini small-car brand and Rolls-Royce super-luxury marque, rose 14 percent to 1.67 million vehicles in 2011. Deliveries in Europe increased 8.5 percent, while sales in the U.S, BMW’s biggest national market, jumped 15 percent.

Including a 4.6 percent increase for the Smart two-seat brand, Daimler’s Mercedes-Benz Cars division posted a 7.7 percent gain to 1.36 million deliveries. The Mercedes-Benz marque’s growth was held back by a 1 percent decline in western Europe. Deliveries in the U.S. increased 13 percent.

Growth at Audi contributed to a 14 percent sales jump at Volkswagen, Europe’s biggest carmaker, which delivered a record 8.16 million cars, SUVs and vans last year. VW’s namesake brand sold 13 percent more vehicles at 5.09 million deliveries, and sales at the van unit jumped 21 percent. The Skoda brand’s deliveries rose 15 percent and the Seat brand’s increased 3.1 percent.

Audi expects its sales gains this year to exceed the global automotive market’s predicted growth of 4 percent, division Chief Executive Officer Rupert Stadler told reporters in Detroit today. China’s industrywide car sales will probably rise 8 percent, he said.

The VW unit is likely to maintain its second-place luxury- car industry rank until 2014 or 2015, as Mercedes-Benz needs to build up sales of the lower-priced A-Class and B-Class lines, Ellinghorst said.

Daimler Chief Executive Officer Dieter Zetsche set a goal last year of returning to the No. 1 spot in luxury-car sales by 2020. BMW overtook Mercedes-Benz as the industry leader in 2005.

Zetsche is “very optimistic” that Mercedes will regain the top ranking and isn’t ruling out beating the deadline, the CEO said today in a Bloomberg Television interview from the Detroit show. The new A-Class, being presented at Detroit, is intended to signal that Mercedes is a “more dynamic” brand, Zetsche said.