Moscow, 28 August 2008: The Russian luxury car market is fast emerging as one of the 'most hottest' destinations for luxury cars.

This may be why some of the most coveted carmakers like BMW, Daimler (Mercedes-Benz) and Audi have to fight hard to win over wealthy Russian buyers.

The three German automakers dominate the global market for luxury cars, yet they are finding the strength of their brands not enough to guarantee sales in Russia, where incomes are soaring.

"Russia is one of the hardest-fought luxury markets in the world," Christian Kremer, President of BMW Group Russia, said on the sidelines of the Moscow International Auto Salon.

"Since customers are not so far along in their purchasing decision, you can change their opinion very quickly with the right marketing", he added.

Although volumes in the luxury segment are not high with the three major German luxury brands selling around 15,000 cars each last year, the market's growth rate has been ever increasing.

Mercedes' customer deliveries in Russia rose 65%, BMW by 55% and Audi by 52% last year. The trio enjoy higher-margin sales thanks to the desire by many in Russia to display their wealth by driving the most expensive cars.

"There is another big difference about our customers - they are considerably younger. Our average Mercedes buyer is between 35-37 years of age, in other words roughly 15 years younger than elsewhere," said Juergen Sauer, President & CEO of Mercedes-Benz Russia SAO.

Mercedes has adapted its western Europe marketing campaigns for Russia to focus on younger buyers, he said.

"It would be fatal not to be present at this show. The effect you can generate in Russia during such a trade fair is much higher than in an established market," Mr.Sauer said, pointing to the success that Infiniti enjoyed in Russia two years ago.

In order to generate as much media splash in the country as possible, BMW's next-generation 7 Series luxury saloon made its world debut on Red Square in early July. The car is its largest and most expensive model below the Rolls-Royce Phantom.