The outside of the Maybach Model Heart Seoul / Courtesy of Mercedes-Benz Korea
BMW Korea and Mercedes-Benz Korea can higher fend off the speedy rise of Tesla and Chinese language electrical autos (EVs) makers by pivoting towards Korea’s rising ultra-luxury automobile section — an area the place newcomers are unlikely to match their model heritage and exclusivity anytime quickly, trade officers stated Friday.
Somewhat than competing head-on within the more and more crowded premium market, the German automakers are increasing their highest-end choices, betting that their longstanding model heritage and premium positioning will stay troublesome for newer rivals to copy.
The technique comes as Tesla and Chinese language manufacturers, akin to BYD, proceed to realize traction in Korea, eroding the dominance lengthy loved by established premium automakers. As an example, Tesla’s price-competitive Mannequin Y received a title because the nation’s top-selling automobile within the first half, accounting for greater than 30 p.c of all newly-registered autos right here.
Whereas German manufacturers nonetheless stay robust within the luxurious section, competitors is turning into more and more intense in mainstream premium fashions, prompting them to concentrate on higher-margin autos the place pricing energy and model fairness stay their greatest benefits.
The BMW 7 Sequence premium sedan / Courtesy of BMW Korea
BMW Group lately shared plans to launch its standalone ultra-luxury marque, BMW ALPINA, in Korea in 2027. Beneath the initiative, BMW Korea is scheduled to ascertain seven devoted ALPINA retail areas nationwide by the second half of subsequent 12 months forward of the model’s debut.
The BMW 7 Sequence offered 3,077 models within the first half of 2026, turning into the top-selling mannequin in the identical section.
Mercedes-Benz Korea can also be making related strikes by strengthening its ultra-luxury presence with an upcoming launch of its new S-Class mannequin. Korea has develop into Maybach’s third-largest market after China and america final 12 months. Maybach is the ultra-luxury model of Mercedes-Benz.
The shifts from BMW and Mercedes-Benz displays sturdy progress in Korea’s ultra-luxury automobile market.
In keeping with BMW Korea, home gross sales of flagship premium sedans priced between 100 million received and 200 million received, together with the BMW 7 Sequence and Mercedes-Benz S-Class, rose from round 12,000 models in 2014 to about 34,000 final 12 months.
The brand new Mercedes-Maybach SL is displayed on the Maybach Model Heart Seoul, July 14, 2025. Korea Instances photograph by Nam Hyun-woo
Gross sales of autos priced above 300 million received, together with Maybach, Bentley and Ferrari fashions, climbed even sooner, growing practically sixfold from 452 models to 2,605 throughout the identical interval.
Trade officers stated German premium manufacturers more and more view the ultra-luxury section as a defensive stronghold in opposition to the inflow of lower-priced EV opponents. Regardless of the steep gross sales progress by Chinese language price-competitive fashions, few of Chinese language luxurious vehicles nonetheless can’t attraction to Korean prospects, based on the officers.
“German automakers acknowledge that competing solely on worth or expertise in opposition to Chinese language EV makers will develop into more and more troublesome,” an trade official stated. “As an alternative, they’re concentrating on the ultra-luxury market, the place model status, craftsmanship and heritage stay key aggressive benefits which are troublesome to copy from Chinese language rivals.”
Whereas the technique is unlikely to halt the growth of Tesla and Chinese language EV manufacturers out there, the official stated it might assist BMW and Mercedes-Benz protect profitability by strengthening their presence in a section the place competitors stays restricted.
Others identified the auto trade’s transition to EVs pressured the German automobile powerhouse to revamp their technique in opposition to the unavoidably fierce rivalry in opposition to Chinese language counterparts.
“With Chinese language EV makers quickly closing the efficiency hole within the electrified period, German premium automakers have little alternative however to double down on the ultra-luxury section,” an auto trade official stated. “The ultra-luxury section stays one aggressive area that Chinese language manufacturers are unlikely to match anytime quickly.”
