For the first time, BMW has surpassed Mercedes-Benz in South Korea’s ultra-luxury imported car market, driven by rising demand for premium SUVs and shifts in buyer demographics. This milestone highlights changing consumer preferences and BMW’s strategic agility in this competitive segment.
BMW has taken the lead from Mercedes-Benz as the top brand in South Korea’s ultra-luxury imported car market segment, marking a historic shift in consumer preferences. This segment includes vehicles priced above 150 million Korean won and has seen a notable surge, underpinned by premium SUV demand and changing lifestyles among affluent younger buyers.
Changing Market Dynamics
The ultra-luxury market, historically dominated by luxury sedans like the Mercedes-Benz S-Class and BMW 7 Series, has shifted towards family-friendly SUVs, with the BMW X7 emerging as the bestselling model this year. This reflects evolving consumer priorities favouring utility and lifestyle compatibility alongside luxury.
Generational Shift
Younger affluent buyers in their 30s and 40s—referred to as the "Young Rich"—now account for 59% of personal purchases in the ultra-luxury market, doubling their share over five years. Their preference for performance SUVs and outdoor lifestyle vehicles has reshaped the market landscape significantly.
Competitive Impact
BMW’s strategic emphasis on SUVs and its flexible, customer-centric approach gave it an edge, despite overall declines in luxury sedan sales. Meanwhile, Mercedes-Benz faces challenges maintaining market share amid shifting demand patterns.
Economic Context
The growing ultra-luxury segment contrasts with a prolonged economic downturn limiting broader consumer spending, highlighting polarization where only affluent buyers sustain top-tier luxury demand.
This milestone for BMW signals its strengthened position in South Korea’s luxury car market and broader success in capturing emerging segments within premium automotive demand.
Sources: KED Global, Chosun Ilbo, Korea Times, Korea JoongAng Daily.