Mercedes-Benz and BMW stage uphill rivalry

Mercedes-Benz’s all-new E300 sedan

By Jhoo Dong-chan

Mercedes-Benz Korea, the German automaker’s affiliate here, sold more than 6,000 cars last month, a record high figure in its history. Another German luxury brand BMW also sold over 5,000 cars in Korea last month, nipping at the heels of Mercedes-Benz Korea.

The German premium automakers’ performances are in stark contrast with other German players Audi and Volkswagen, which struggle to find their feet after reputation damage caused by the government’s cancellation of their sales licenses earlier this year.

According to a Korea Automobile Importers and Distributors Association (KAIDA), Mercedes-Benz Korea sold a total of 6,400 cars in Korea last month, to carve out a 31 percent of the market for imported automotives, a record monthly figure among the KAIDA members.

Mercedes-Benz Korea’s spike is attributable to the success of the all-new E-Class sedan, fully redesigned after seven years with a distinct style, enhanced efficiency and technological innovation.

Since Mercedes-Benz started to market the all-new E300 and E220d here in July, both models have been the best sellers for three consecutive months.

Thanks to the E-Class models’ surge, Mercedes-Benz topped a 30 percent market sales among imported automakers in August, and sold 5,087 cars in September for a 15 percent increase year-on-year.

The rival BMW also sold 5,415 cars last month, following Mercedes-Benz by an inch.

BMW Korea’s results are even more remarkable considering it has not introduced the new 5-Series, the German automaker’s popular sedan model, to Korea this year.

BMW’s strong sales last month was led by the popular 520d. The mid-size sedan sold 1,732 cars last month.

The BMW 520d has been the best-selling imported car in Korea during the January-September period of 2016, a strong candidate for “the imported car of the year.”

In the meantime, Volkswagen and its sister brand Audi have remained underachievers after the emission scandal.

Audi and Volkswagen sold 506 and 184 cars, respectively, in September. The figures further slipped to 475 and 30 cars apiece last month.

“If the poor sales trends continue, Audi and Volkswagen should consider pulling out of Korea. As you know, lots of people lost interest in the two brands after the worldwide emission scandal,” said an industry insider who asked not to be named.

“Along with Audi and Volkswagen, other imported automakers’ sales were not very good this year, but only Mercedes-Benz and BMW show strength. It will be interesting to see whether the two German automakers will be able to continue their momentum during the remainder of this year.”