Mercedes catching up fast with BMW

By Park Jin-hai

Volkswagen Golf GTD

BMW new X4

Mercedes-Benz CLS 63 AMG 4MATIC

Audi A3

Mercedes-Benz is steadily catching up with BMW and taking a bigger bite out of the local car market.

BMW is expected to maintain its position as the top imported car brand, but is facing a fierce challenge to hold onto that title as Mercedes-Benz has fared surprisingly well.

This year’s total imported car sales are expected to hit 195,000, a 24 percent increase from last year, according to the Korea Automobile Importers and Distributors Association.

BMW is likely to win the honor of top-selling imported car for the fifth straight year since 2009.

It sold 33,617 cars as of October, with annual sales forecasted to pass the 40,000 mark by the end of this year.

However, BMW’s market share has been slipping over the past number of years, faced with its rival Mercedes increasing its sales.

BMW’s annual sales increased from 23,293 in 2011 to 28,152 and 33,066 in 2012 and 2013 respectively; however, its market share dropped from 22.18 percent to 21.51 percent, then 21.13 percent over the same period.

As of October this year, its market share remained at 20.72 percent.

Mercedes-Benz has threatened BMW’s place by carrying out aggressive marketing, expanding its market share.

Mercedes sold a total of 30,107 cars as of October, from 20,822 during the same period last year.

The carmaker gave up its second place to Volkswagen last year, but recovered its position by surpassing the 30,000 mark in accumulated sales as of October this year.

In fact, September and October monthly sales beat out BMW two months in a row. Its market share recorded 18.55 percent, from 15.99 percent during the same period last year. The carmaker is 3,510 short of BMW’s overall sales for 2014.

Unlike its other German rivals’ loaded diesel models, Mercedes has diverse gasoline models including the C200 and E300, and has been beefing up its compact car segment. This targets young customers and has meant its market share is predicted to gain 3 percent this year.

Audi is also showing a good sales record so far. Although it hasn’t launched many new cars apart from the A3 sedan, its sales have become stronger.

Its annual sales, which have been on the rise since 2010, are forecast to hit around 27,000, taking 15 percent of the market share.

Meanwhile, Volkswagen, which overtook Mercedes last year in sales, has slipped back into fourth place. The carmaker is heavy in diesel lineups and has been losing its market share as rival carmakers all launched diesel sedans, diversifying the demand for the segment.

Its sales inched up to 25,085 as of October from 21,401 a year earlier, but its market share slipped to 15.46 percent from 16.43 during the same period.