BMW vs. Audi- A Battle for the Chinese Car Market

Those with an interest in the inner workings of the global economy know that China is the next economic frontier. With a great deal of financial and political sway, the thirsty nation is searching for vehicles to quell its rapidly rising needs. In a battle to dominate the market two contenders have come forward: BMW and Audi. Both Germany manufacturers, it seems that their rivalry will be reaching a fevering pitching during this battle, leaving one the true victor to feast on the spoils.

Analysts believed that in 2012 the Chinese to overtake the Germans to become the second largest luxury car market. While many don’t believe that it will topple the United States, currently placed in first, the increase in sales have been quite staggering. For example, Bloomberg Buisnessweek suggested that some 939,000-luxury vehicles have been sold in 2011. This is 39 climb from the previous year, beating Germany’s 914,000 vehicles.

The Shanghai based firm LMC Automotive commented on this dramatic increase, stating that it is likely to far exceed that next year. Indeed, conservative statstics believe predict a staggering 16 percent rise at the same time suggested that Germany will reach a modest 4.4 percent climb.

Considering all of this, Audi has been doing particularly well this year. Of all the manufactures the company experienced a 69 percent rise over last year. Setting very admirable targets for the following years, the company hopes to be beat BMW as the global seller of luxury automobiles in 2015. This compares remarkably well with BMW 9.8 percent rise as well as Mercedes 24 percent rise in the market. While the general European trend has actually fallen by 3 percent, these manufactures don’t appear to be much affected.

Bloomberg noted that while the battle between these two great figures is indeed important, other Germany manufactures like Mercedes-Benz and Volkswagen also hold some value. Based on Barclay’s estimates, Europe will be in a recession the first half of 2012 and the growth caused by these manufactures will be of great importance.  While it may not be as strong as in previous years, the Chinese consumer market will certainly provide the European economy with a strong backbone to begin its recovery.