KOREASCHOLAR

Developments on the Chinese automotive market could change the business in the race to the crown for German premium brands. With extraordinary growth rates, car manu-facturers prioritized Asian market development. More concrete, a quickly evolving segment of young, wealthy Chinese customers demanding German luxury cars seems to be a chance to compensate maturing home markets. BMW – originated in premium segments – is about to expand its luxury reach through its 7-series while, at the same time, serving the increasing demand for “affordable luxury” in all markets. However, competitors are catching up with new concepts. Whereas Mercedes-Benz always had a great proportion in the luxury segment, Audi became the market leader in China by launching several new luxury models. BMW sees the answer in the possible launch of a new 9-series sharing a platform with their Rolls-Royce cars. Furthermore, the BMW Individual manufactory launched a new, strictly limited 7-Series in corporation with silver manufacturer Robbe & Berking – the most expensive and exclusive car BMW ever crafted. To be able to win the race, BMW has to incorporate new technologies when considering the trading-up or trading-down of their model range.

• Ashok Som(ESSEC Business School, France)