BMW Group SA is bullish about defending its turf in the competitive premium vehicle segment.
While the segment has been declining for the past decade, the entry of Chinese carmakers has shrunk the pie even further.
Chinese car brands have disrupted the automotive industry with their competitive pricing, advanced technology and feature-rich vehicles.
Their offerings are rapidly gaining market share and putting pressure on local manufacturers to stay competitive.
However, German carmaker BMW said that while Chinese brands are making inroads, the group had some key advantages that stand it in good stead to ward off premium segment competition.
“While acknowledging the increasing presence of Chinese brands in the entry-level and mid-market segments, the premium sector requires significant brand trust, a strong dealer network and a well-established history of superior performance and luxury,” the group said.
“BMW has cultivated this reputation over decades and confidently asserts its ability to maintain its leadership position in the premium landscape.”
The bullish tone exhibited by BMW is in contrast to the alarm bells rung by rival Audi, which has called for state support as the premium vehicle market declines.
Audi, a subsidiary of the Volkswagen Group, said in April that the sector had contracted to nearly a third of its size compared with a decade ago, with 2024 marking the lowest level yet.
Audi flagged the “entry of new brands” that has led to substantial and heightened retail competition.
One of the reasons behind the decline flagged by Audi is consumers “buying down” as disposable incomes come under strain.
Jebb McIntosh, CEO of CMH, one of SA’s largest car showroom owners, recently called for government intervention, citing the growing threat Chinese carmakers pose to local manufacturing and established brands.
“The unrestricted proliferation of Chinese and Indian vehicle imports has placed extreme pressure on local producers and many jobs may be lost unless there is more government support,” he said in a letter to the company’s shareholders, published in its recent annual report.
Still, BMW maintains competition drives innovation and benefits customers. It said it would continue to focus on delivering premium vehicles built on quality, safety and dynamic performance.
The group said its leadership in the premium market was reinforced by its strong performance in the first quarter of 2025, in which it outperformed key competitors in passenger vehicle sales.
“This confidence is underscored by BMW Group SA’s strong performance in the first quarter of 2025, demonstrating the enduring appeal of its product range and the resilience of its local operations. BMW Group SA significantly outperformed its key premium competitors in passenger vehicle sales during this period,” BMW said.
Business Day recently reported that average new car prices in 2025 are down 8.6% from 2024, largely due to the surge in cheaper brands, many of which are Chinese.
April saw total vehicle sales rise to 42,401 units, up 11.9% from the same month last year. For the first four months of the year sales were 10.6% higher than in the same period in 2024, suggesting a return to pre-Covid-19 levels.
Toyota continues to lead overall sales, but the most notable shifts are being driven by Chinese and other budget-focused brands.
Suzuki has overtaken traditional giants such as Volkswagen, while Chinese manufacturers, including Great Wall Motors (Haval), Chery, Omoda, Jaecoo, Jetour, Foton and BAIC, are rapidly climbing the rankings.
BMW Group ranked 12th in April, with 1,146 units sold, behind Kia, Mahindra and Renault.
Electric vehicle maker BYD has also entered the local market, with more Chinese entrants expected to follow.
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