The German luxury brands Mercedes Benz and BMW are having a bout in the Korean market.

Entering this year, Mercedes Benz have been pressing the top import brand BMW in sales with introduction of new S class models, and both brands are on a close match in Korea. More recently they are competing in investments for logistics network and R&D.

In last September, Mercedes Benz sold 3,538 units here, topping BMW to the best seller. It is in two years and nine months after giving the top notch to BMW in December 2011.

Mercedes Benz had already surpassed BMW in August. The official registration of Benz was 3,067 units, less 150 units than BMW’s 3,213 units, but the actual sales was 3,500 units, including unregistered 500 units, exceeding BMW’s 3,300 units.

The accumulated sales by BMW upto September registered 30,137 units, which is 3,500 units more than Mercedes Benz’s 26,596 units, but the projection by Benz Korea to sell 3,500 units per month till the end of this year, the last stretch will be a tug-of-war.

For the prospects of Mercedes Benz, sales outlets will be expanded to 50 by 2020, while sales will reach 50,000 units per annum.

BMW Korea also has the equivalent plan to increase sales to 50,000 units in three to four years, and so for the time both brands’ competition will be very close.

The rivalry will not be for sales but also for infrastructure investments, such as logistics network and R&D.

As BMW Korea opened last July the Yeongjongdo Driving Center at 77 billion won, Mercedes Benz opened in August a supply logistics center in Anseong with an investment of 52 billion won.

BMW released a plan on October 10th to set up an R&D center within the Driving Center with an investment of 20 billion won by 2020.

The plan is materializing the projection reported by Mr. Ian Robertson, President of Sales and Marketing at BMW Group at the ceremony of the Driving Center, and around 20 R&D staff members from the German head office will be dispatched by 2017 for completion of the R&D center.

The R&D center will be affiliated to the German head office, and the principal mission will be developing IT-related technologies in collaboration with Samsung Electronics, as well as convenience equipments like navigation for the Korean marekt.

Mr. Ian Robertson said that “Korea is one of the high-tech countries in the world, and the consumers’ expectation is very high. So, BMW has decided to establish an R&D center in Korea to offer the high level service, meeting the request by the Korean consumers.”

The R&D center in Korea is the fifth folloing Brazil, USA, Japan, and China, and will be settled in the BMW Driving Center by 2015.

Earlier, Mercedes Benz also inaugurated a special team for the role of R&D center last March. For the moment two researchers from Germany and a couple of Korean employees are in charge of the Benz Korea R&D center, and will be reinforced in years.

Chairman Dieter Zetsche also said that “He is planning to comply with Korean consumers’ needs by utilizing Korean’s capabilities.”

In addition, BMW is operating BMW Future Fund as a CSR activity, and Benz Korea is also scheduled to undertake a CSR foundation at the end of the year. As such, both brands are competing with little concession.