Russia wants to launch a BMW-rivaling luxury brand


Kaustubh Shinde,

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Luxury brands Mercedes and Audi are trying to pull down BMW from the number one spot and hope to complete the formalities by 2020.

BMW 6 Series Gran Coupe

The Bavarian automaker always outsmarts the competition by creating new segments. There is a very good chance that Audi might be able to outpace BMW sometime in 2015 but only if the Russians don’t have their way!

The Russian government wants homegrown automakers ZiL, Marussia Motors, and GAZ Group to develop a luxury car brand that could succeed BMW as the best luxury automaker in the world. Russia’s Trade Minister Denis Manturov believes that a luxury brand from Russia could target a broader market.

The big three from Russia do not sound even remotely optimistic about the new proposal because setting up a brand to compete with BMW is very difficult as it involves huge R&D costs. But Manturov is so serious about the proposal that he has even pledged government funding to spark the project.

ZiL, one of Russia’s big three automakers, said the company is currently focused on building an armored limousine for President Vladimir Putin but is open to the idea of a luxury brand. Marussia is working on the proposal that needs to be submitted to the government but no details were provided.

A luxury brand from Russia giving BMW a run for its money may seem like an overly ambitious plan. So far, we see only Audi coming close to BMW sometime in the next three years. Even the well received luxury brands such as Mercedes, Jaguar, Cadillac et al still have a long way to go before coming near BMW.


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