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BMW, Mercedes-Benz turn to super luxury to fend off Tesla, Chinese EV challenge

BMW Korea and Mercedes-Benz Korea can better fend off the rapid rise of Tesla and Chinese electric vehicles (EVs) makers by pivoting toward Korea’s growing ultra-luxury vehicle segment — an arena where newcomers are unlikely to match their brand heritage and exclusivity anytime soon, industry officials said Friday. Rather than competing head-on in the increasingly crowded premium market, the German automakers are expanding their highest-end offerings, betting that their longstanding brand heritage and premium positioning will remain difficult for newer rivals to replicate. The strategy comes as Tesla and Chinese brands, such as BYD, continue to gain traction in Korea, eroding the dominance long enjoyed by established premium automakers. For instance, Tesla’s price-competitive Model Y won a title as the nation’s top-selling vehicle in the first half, accounting for more than 30 percent of all newly-registered vehicles here. While German brands still remain strong in the luxury segment, competition is becoming increasingly intense in mainstream premium models, prompting them to fo

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