Why BMW dominates China’s luxury market

BMW clearly dominates the Chinese market in the luxury segment. Together with Audi and Mercedes Benz, BMW controls almost 76% of the luxury car sales in China. In the next years, this percentage is still expected to grow. The reason behind this success is the lowered prices of BMW cars and the car designs that are tailor fit for the Chines market.

BMW has been very vocal in its focus on China and the U.S.A. In fact, BMW’s 7 Series and the BMW M3 Limited Tiger Edition were specifically made for the Chinese market. The former addresses the Chinese habit of being chauffeured, and the latter was made in celebration of the Chinese Year of the Tiger. In the following years, BMW plans to create additional extended-wheelbase models for China.

BMW is able to lower the cost of their luxury cars in China because of it’s manufacturing plant there. The BMW 3 Series and 5 Series sold in China are also manufactured there, thus eliminating export costs. This helps BMW gain competitive advantage against brands that manufacture their cars abroad and then just ship it to China.