Mercedes Faces The Audi Challenge In China's Compact Luxury Car Market

The compact segment is expected to constitute 20% of the luxury vehicle market in China by 2015, up from around 11% in 2012. Mercedes will aim to grab a majority of this growth, in order to narrow its gap with the global luxury leader BMW. However, the biggest competitor for Mercedes in China is its other German compatriot Audi, which presently leads China's premium sales.