Mercedes-Benz Korea's G-Class SUV is seen in front of the carmaker's SUV Experience Center in Yongin, Gyeonggi Province / Courtesy of Mercedes-Benz Korea

Mercedes-Benz and BMW are expanding their facility investments to strengthen their leadership in the imported vehicle market here amid Korea's growing strategic importance to luxury carmakers, industry officials said Friday.

The local subsidiaries of the two German carmakers have been engaged in a close rivalry for the past decade, primarily focusing on maximizing vehicle sales. However, both companies are shifting their strategies toward prioritizing long-term growth in Korea.

Early this month, Mercedes-Benz Korea launched the largest year-round off-road course in Yongin, Gyeonggi Province, allowing customers to test the off-road capabilities of its various SUV models.

The facility features real natural terrain and spans 26,000 square meters. The luxury carmaker collaborated with Samsung Construction & Trading's resort group to open the course. This marks the second time the carmaker has opened a vehicle experience space in Korea following AMG Speedway, the world's first AMG-branded track, in 2018.

"The decision is part of our investment to provide Korean customers with a broader brand experience for our best vehicle lineups," a Mercedes-Benz spokesperson said.

BMW vehicles run on a track at the BMW Driving Center on Yeongjong Island in Incheon, Oct. 4. Courtesy of BMW Korea

BMW Korea is also stepping up its facility and equipment investment to ensure sustainable growth. The company is renovating its long-beloved BMW Driving Center on Yeongjong Island in Incheon. The renewed center will open sometime around November.

The decision was made to celebrate the facility's 10th anniversary. BMW Korea opened the center in July 2014 by investing 77 billion won ($56.21 million). The center holds symbolic significance as this is the carmaker's first facility of its kind in Asia.

It attracted more than 1.5 million visitors over the past decade and is undisputedly considered Korea's one of the most popular driving facilities.

The carmaker is also making significant investments in electric vehicle (EV) charging stations. As of the end of September, it had installed over 1,600 EV chargers nationwide. It plans to increase that number to more than 2,100 by the end of 2024

"As Korean consumers' strong interest in the two leading German carmakers has persisted for over a decade, they are seeking to devise long-term growth strategies by expanding relevant investment, an official from an automaker said.

According to data from the Korea Automobile Importers & Distributors Association, BMW Korea topped the list of imported auto sales with 54,472 sold in the first nine months of this year. That of Mercedes-Benz Korea came in second with 48,048 during the same period.