Mercedes aims to surpass BMW and Audi in China by 2020
Mercedes-Benz targets the top spot in China's luxury car market by 2020, after rapid sales growth narrows the gap to BMW and Audi.
Mercedes-Benz is targeting the number one position in China’s luxury car market by 2020, after a surge in sales brought the brand closer to BMW and Audi. In 2015, Mercedes delivered 373,459 vehicles in China, a 32.6 percent increase on the previous year, outpacing BMW’s 1.7 percent growth and reversing Audi’s 1.4 percent decline. Despite this, both rivals remained ahead in absolute sales, with Audi selling 570,000 cars and BMW 460,000.
China became Mercedes’ largest individual market worldwide in 2015, overtaking traditional strongholds in Europe and North America. The company’s rapid growth has been driven by localised production, a refreshed model range and expanded dealer presence. While Mercedes still trails its German competitors in total Chinese sales, the gap narrowed sharply over the past year, setting up a closer contest for the luxury crown.
Competitive context: BMW and Audi in China
BMW has led the premium segment in China for a decade, but Mercedes’ recent momentum has put it in contention for the top spot. Audi, long the dominant luxury brand in China, saw its volumes slip in 2015. Mercedes’ management, including China chief Hubertus Troska and global sales head Ola Källenius, have publicly stated their ambition to claim number one by 2020, while insisting they will not pursue volume at any cost.
- Mercedes: 373,459 vehicles sold in China in 2015 (+32.6%)
- BMW: 460,000 vehicles sold in China in 2015 (+1.7%)
- Audi: 570,000 vehicles sold in China in 2015 (-1.4%)
The first quarter of 2016 saw Mercedes briefly overtake its rivals in Chinese premium sales, according to company statements at the Beijing motor show. Executives expect China to remain the brand’s biggest growth market for at least five years, but have acknowledged that global leadership does not depend solely on Chinese performance. For more on Mercedes’ global sales trajectory, seeMercedes-Benz Sets New November Sales Record Globally
Why China matters for Mercedes
China’s premium car market has become critical for German manufacturers, with local demand outstripping most other regions. Mercedes’ investment in local production and dealer networks has paid off with rapid volume growth. While the company’s senior management has downplayed the need to be number one in China to achieve global leadership, they have made it clear that China will remain central to their growth strategy through 2020.
