BMW vs Mercedes: Which Is Winning The Premium Cars Segment?

BMW vs Mercedes

April began with a bang in the luxury cars segment in India. How? Due to the heated battle of BMW vs Mercedes!

BMW vs Mercedes

In the last quarter of FY23, Mercedes-Benz sold over 350 EVs while BMW sold 211 EVS in the same period. Not just that, the former is planning to launch three new EVs this year to race ahead of its rival BMW and to become a market leader in the Indian EV space.

However, this doesn’t make BMW any lesser than Mercedes. You see, BMW reported sky-high sales of 22,940 units of luxury cars in India with YOY growth of 19%.

All these facts boil down to one question- BMW vs Mercedes- who is winning the premium cars segment?

Let’s find out!

BMW vs Mercedes: Profile Comparison

Both BMW and Mercedes are highly recognized names in the global automotive industry. Their secret? Cutting-edge technology, engineering excellence & innovation, iconic cars, and the list goes on… Due to their unique features, folks named them the “most prestigious automakers in the world.”

Before moving further, let’s have a look at their profiles-

ParticularsBMW Mercedes
Official NameBayerische Motoren Werke AGMercedes- Benz Group
Type of CompanyPublicPublic
Founded7th March 191628th June 1926
FoundersKarl RappCarl Benz, Emil Georg von Stauss
HeadquartersMunich (Germany)Stuttgart (Germany)
Area ServedWorldwideWorldwide
BrandsAutomobiles- Alpina, BMW, BMW I, BMW M, BMW X, BMW Z, DriveNow, Mini, Rolls-Royce 
Motorcycles- BMW Motorrad
Mercedes-Benz, 
Mercedes-EQ, 
Mercedes-Maybach, 
Mercedes-AMG, 
Smart
ServicesCar-sharing services, financing, leasing, insurance, and other financial servicesMaintenance Services, Finance Services, Insurance Solutions
OwnersPublic (50.7%), Stefan Quandt (25.8%, 25.6% through holdings, and 0.19% directly), Susanne Klatten (20.9%, 20.7% through holdings and 0.2% directly)Institutional investors (52.7%), Private shareholders (22.8%), BAIC Group (9.98%), Tenaciou3 Prospect Investment Limited (Li Shufu) (9.7%), Kuwait Investment Authority (6.8%)
CompetitorsAudi, Mercedes, Jeep, Lexus, Honda, Hyundai, etc.BMW, Audi, Porsche, Jaguar Land Rover, Volvo, Lexus, Cadillac, etc.
BMW vs Mercedes: Profile Comparison

Features Comparison: BMW vs Mercedes

Here comes one of the most anticipated parts of BMW vs Mercedes- how do they differ in their features?

Go through the table and you’ll find out!

FeaturesBMWMercedes
WarrantyFour years or 50,000 milesFour years or 50,000 miles
Complimentary MaintenanceThree years or 36,000 milesNone
Power Brand Reliability Score123 pp out of 100153 pp out of 100
PerformanceHigh performance with an exceptional level of speed and powerThe 255-horsepower turbo E 350 self-tunes every few seconds to extract more performance with less gas.
DesignFeatures sharp lines and aggressive styling Emphasizes elegance and sophistication
Technology & SafetyLucrative features like autonomous emergency stopping, lane deviation indication, and morePrioritizes safety with features like fatigue monitoring, proactive lane assistance, and proactive braking facilitation
Interior QualityKnown for its premium materials and modern design. Offers luxurious interiors with attention to detail and comfort
Infotainment SystemBMW’s iDrive system is user-friendly and responsive.Mercedes-Benz’s COMAND system provides intuitive controls and a large display.
Driving DynamicsBMW prioritizes sporty handling and precise steering.Mercedes-Benz focuses on a smooth and comfortable ride. 
Variety of ModelsBMW has a wide range of models, from compact cars to SUVs and high-performance M cars.Mercedes-Benz offers diverse options, including sedans, coupes, convertibles, and SUVs. 
CustomizationBMW’s Individual program allows extensive customization.Mercedes-Benz offers various packages and options for personalization. 
Resale ValueBMW tends to have slightly better resale value.Mercedes-Benz also holds its value well.
Brand ImageBMW is associated with sportiness and driving pleasure.Mercedes-Benz is synonymous with luxury, elegance, and prestige. 
Ownership ExperienceBMW owners appreciate the brand’s driving dynamics and performance. Mercedes-Benz owners value comfort, safety, and status.
Features Comparison: BMW vs Mercedes

Are you planning to buy a car belonging to any of these brands? If yes, then you must remember that both brands offer great performance, reliability, and sturdy construction. BMW’s compact and lightweight powertrain may appeal to some, while Mercedes-Benz provides powerful engines for those seeking horsepower. Safety features and technology offerings also play a significant role in your decision-making process.

In short, the choice between BMW vs Mercedes depends on your personal preferences, budget, and specific needs!

BMW vs Mercedes: Business Comparison

Coming to the core part of our discussion i.e. BMW vs Mercedes- Who is winning in the premium car segment? For that, we need to analyze the business aspects of both the companies. Such as how many units they sell, their revenue, profitable or not, etc. 

Let’s begin our comparison analysis from the business perspective-

(A) Sales by Region

The following table describes the percentage of cars sold by BMW and Mercedes in different parts of the globe-

RegionCountriesBMWMercedes
ChinaRepublic of China32.3%16.5%
North AmericaUnited States of America15.6%23.5%
Except for the USA2.9%
GermanyGermany10.7%16.5%
EuropeUK6.2%23.6%
France3.4%
Italy3.1%
Asia (Without China)South Korea3.3%11.8%
Other Markets25.4%4.9%
BMW vs Mercedes: Sales by Region

Looking at the table, you can see the percentage of cars sold by BMW and Mercedes in different regions of the world. In China, BMW sold 32.3% of cars compared to Mercedes, which sold 16.5%. In North America, including the USA, Mercedes sold more cars with 23.5% compared to BMW’s 15.6%. However, in the rest of North America (excluding the USA), Mercedes sold 2.9% while BMW didn’t have sales data listed. 

Moving to Germany, Mercedes again outperformed BMW with 16.5% compared to BMW’s 10.7%. In Europe, Mercedes sold significantly more cars in the UK with 23.6% compared to BMW’s 6.2%. In other European countries like France and Italy, Mercedes also sold more than BMW.

In Asia, excluding China, Mercedes sold more cars in South Korea with 11.8% compared to BMW’s 3.3%. Finally, in other markets not specified, Mercedes had a higher percentage of sales with 25.4% compared to BMW’s 4.9%.

Thus, Mercedes sold more cars overall in most regions compared to BMW!

(B) Financial Comparison

Now, let’s compare the financials of BMW vs Mercedes-

Financial Aspects (FY23)BMWMercedes
Market CapitalizationEUR 67.64 billionEUR 109.74 million
RevenueEUR 155.5 billion
($170 billion)
EUR 153.2 billion
Expenses$144.02 billion$146.971 million
Profit/LossProfit of EUR 12 billionProfit of EUR 14.5 billion
($15.7 billion)
BMW vs Mercedes: Comparing the Finances

Looking at the financial aspects of BMW and Mercedes for the fiscal year 2023, we see some interesting comparisons. 

In terms of market capitalization, BMW leads with EUR 67.64 billion compared to Mercedes with EUR 109.74 million, indicating BMW has a higher total value in the stock market.

When it comes to revenue, BMW generated EUR 155.5 billion (which is roughly $170 billion), slightly higher than Mercedes’ EUR 153.2 billion. However, in terms of expenses, BMW spent $144.02 billion, while Mercedes spent $146.971 million, indicating that BMW had lower expenses.

In the end, looking at the profit/loss, Mercedes came out ahead with a profit of EUR 14.5 billion (approximately $15.7 billion) compared to BMW’s profit of EUR 12 billion. 

This suggests that despite BMW having higher revenue and lower expenses, Mercedes managed to generate more profit, indicating better business performance in terms of profitability for Mercedes in fiscal year 2023.

Final Words: Who is the winner in BMW vs Mercedes?

In the battle of premium cars, both BMW and Mercedes-Benz showcase impressive performances, but BMW currently holds a slight edge in market capitalization, profit margins, and global presence. However, Mercedes Benz’s innovative engineering and rich history ensure it remains a strong contender. 

That’s how the race for luxury supremacy continues… However, in 2023, Mercedes was more profitable as compared to BMW.

Thank you for taking the time to read this article. Feel free to share your thoughts in the comment section below!

Related Posts:

Photo of author
Published By: Supti Nandi
Subscribe
Notify of
guest
2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Rashmi Sharma
Rashmi Sharma
2 months ago

BMW does have a good market cap and profit margin, but Mercedes offers amazing model designs!

Vijay Pandey
Vijay Pandey
2 months ago

BMW surely has a higher mark in sales!