A game of thrones: BMW vs. Mercedes-Benz

Industry

Published: 29 Sep. 2023, 07:00

A game of thrones: BMW vs. Mercedes-Benz

BMW's new 5 Series which will be hitting the Korean market in October earlier than any other country [BMW KOREA]

BMW vs. Mercedes-Benz.

This time every year, the starting gun fires for the most exciting toe-to-toe slugging match between the two German brands vying for the top spot in Korea’s imported car market.

The race gets more fascinating this year, with BMW determined to overturn the tables with the fully revamped 5 series, its bestselling model for local customers, which will be introduced in Korea in October, earlier than any other country on the planet.

BMW expands sales in Korea to reclaim the crown from Mercedes

But it won’t be an easy game. Mercedes has its new E-Class well prepared for the competition, which is also the German brand’s bestselling model for Koreans.

Korea is a huge market that both brands cannot overlook as it is the biggest market for the 5 Series and E-Class in terms of sales.

BMW is betting big on the new 5 Series, a fully revamped version in six years, which includes the i5, the first-ever pure EV under the series.

All internal combustion engine models come with a 48-volt mild hybrid engine.

With the wheelbase, the distance between the front and back wheels, increased by 20 millimeters (0.8 inches) compared to the previous model, it offers a roomy interior.

“It is very rare that a global automaker chooses Korea as the very first country to introduce their model,” said a spokesperson for BMW. “It shows how seriously BMW considers the Korean market.”

In May 2020, BMW world premiered the partially revamped 5 Series in Korea.

BMW last year opened an M Performance Garage, a service center dedicated to its high-performance M models, in central Seoul, for the first time. The same center is now available in other countries as well.

Mercedes-Benz's new E-Class which will be introduced in Korea next year [MERCEDES-BENZ KOREA]

Mercedes is defending with big discounts until the introduction of the new E-Class, a fully revamped version in seven years, that is slated to hit the Korean market early next year.

It was unveiled globally in April.

Mercedes is offering up to 15 percent off its E-Class sedans, priced at up to 16 million won ($11,900), according to car information provider Getcha. It is very rare that the German brand offers double-digit discounts on its models.

The two automakers’ battle has always been in close quarters, with BMW always pulling ahead in the competition and then being caught up by Mercedes in the later part of the year.

But BMW narrowed that gap last year, selling 78,545 units in the Korean market compared to Mercedes with 80,976 units.

So far this year, BMW overtook Mercedes in January and February, but Mercedes reclaimed the throne from March through May. BMW then snatched the No. 1 position in June and July, but Mercedes succeeded in topping the market in August.

BMW sold a total of 50,341 vehicles this year through the end of August, compared to Mercedes which sold 47,405 cars, according to data from the Korea Automobile Importers & Distributors Association (KAIDA).

Imported brands are selling well in Korea as more customers turn their eyes to EVs. A total of 15,084 EVs from imported brands were sold this year through the end of August, up 54.8 percent on year according to the KAIDA.

In August, 2,926 EVs from imported brands were sold, up 72.2 percent on year.

EVs from domestic brands are losing steam, with sales declining 32 percent during the same period.

In August, Hyundai Motor sales in the domestic market rose 13 percent, but sales of Ioniq 5s plunged 47 percent while Ioniq 6s fell 18 percent.

BY SARAH CHEA [chea.sarah@joongang.co.kr]