Mercedes Is Taking China by Storm

Mercedes is a global brand; they stand for luxury and efficient engineering amongst other things. They have dominated this part of the market for years, and now they seem to be making huge advances in dominating the Chinese luxury car market too.

Mercedes-Is-Taking-China-by-StormFor the first quarter of 2016, Mercedes have seen a 24% increase in sales. This, when they have also seen a 39% increase in sales for 2015 too, surely shows that they are most definitely on the rise. But how has this happened?

Mercedes have cleverly adopted their vehicles to better suit and therefore sell in the Chinese automotive market. They currently produce four vehicles in Beijing which enables cheaper production and ends with a cheaper vehicle to buy. But, as aforementioned, it is the creativity involved in manufacturing specifically Chinese Mercedes’ for a Chinese market. For example, the classic SUV, which is now very popular, has been edited to allow for more space in the back. The sporty SUV has been morphed into a family car as this is what the buyers in the markets desire. Mercedes understand the Chinese market and are effectively altering their vehicles to supply a specific automotive need alongside a premium branded name.

Mercedes’ business plan is working extremely effectively at this moment in time but, they are still facing fierce competition from luxury rivals BMW and Audi. It is worth mentioning however that Mercedes are growing much much faster than the other two brands. By the end of this year, Mercedes may in fact be the number one luxury car manufacturing company in China.

If Mercedes want to be the top luxury car manufacturer in China by the end of this year, they need to continue with their strategy. But, with the economy slowing down, is it possible? Yes it is, possibly, there are tax breaks on auto sales until December 2016. So, as Mercedes understand the market, there are tax breaks and with the release of a new E-class vehicle this year, Mercedes may become the biggest premium car brand in China for 2016.

It is now just a waiting game; we will update you with the winner when the time comes…

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