AutoNews: Why Audi, BMW and Mercedes will dominate China’s luxury market

Automotive News publishes a report on China’s car luxury market and the dominance from the three major German premium automaker, BMW, Mercedes and Audi. According to the magazine, the three automakers control nearly 76 percent of China’s luxury car sales, and their market share over the next few years may even grow.

Some of their advantages coming into the Chinese market are identified in the pricing area, lower than the competitors, and also vehicles tailored and customized specifically to satisfy Chinese tastes.

Audi offers the A4L and A6L longbase models, BMWresponded with their 5 Series long-wheelbase.

The stretched premium vehicles offer the increased interior space demanded by wealthy Chinese customers. Most of these vehicles are chauffeur driven.

Mercedes-Benz also sells a lengthened E-class sedan.

Audi’s sales continue to remain very strong in China, and the A4L and A6L stretch models account for 60 percent of Audi’s total sales.

Another reason why the three companies will dominate the fast-growing Chinese market comes from the local production of vehicles. The Audi A4L, A6L and Q5; BMW 3 series and 5 series; and Mercedes C class and E class all are built in China.

“Except for the Audi Q5 and Mercedes E class, the other five locally produced models are among the 10 best-selling luxury models in China”, says Autonews.

While some competitors are trying to catch up, the German brands aren’t sitting still. Over the next two years, Audi, BMW and Mercedes-Benz plan to launch additional extended-wheelbase models in China.

Therefore, we expect to see a wider gap between the three and the competitors, and implicitly a higher market share.