SEOUL (Bloomberg) -- Ssangyong Motor Co., the South Korean unit of China's biggest automaker, plans to introduce a new luxury model early next year to fend off competition in its domestic market from Bayerische Motoren Werke (BMW) AG and Daimler AG.

The Chairman W will be the Pyeongtaek, South Korea-based automaker's most expensive model, it said in a statement. Ssangyong aims to sell 30,000 sedans annually, including exports of 10,000 cars, Kim Geun Tak, director of marketing told reporters in Seoul Wednesday.
Ssangyong's new model will be released in March, following the introduction of Hyundai Motor Co.’s Genesis sedan. The Korean carmakers are losing customers in their home market to BMW, Daimler and other importers, whose sales are growing five times faster than those of domestic manufacturers.
“Imported vehicles now take nearly 5 percent of the Korean auto market and the sales are growing rapidly,” said Park Hwa Jin, an analyst at Shinyoung Securities Co. in Seoul. “The releases of premium models show their effort to keep the local market,” added Park.
The Chairman W will have either a 3.6 or 5-liter gasoline engine and a 7-speed automatic transmission. Hyundai will release the Genesis, its first rear-wheel drive premium sedan, in January in Korea. It plans to export it to China and the U.S. next year. The Genesis will be equipped with either a 3.3-, 3.8- or 4.6-liter engine and have either a six- or seven-speed automatic transmission.
The Chairman W will compete with imported models such as Toyota Motor Corp.'s Lexus, Daimler's Mercedes S-Class, BMW's 7-Series and Audi AG's A8 sedans, Choi Hyung Tak, Ssangyong's chief executive officer said.
“We've thoroughly analyzed the Lexus LS430, Audi's A8, BMW's 750 and other potential competitors for the launch of this model,” Choi said. “Our aim is to compete with those world-class models, not with large local models.”
China will likely be the main export market for the Chairman W. Ssangyong will also look at the Middle East, Russia and other Eastern European countries, the CEO said.
During the first 11 months of this year, sales of locally made large sedans rose 2.2 percent from a year earlier to 135,912 units, while overall domestic automobile sales grew 6 percent to 1.1 million, according to the Korea Automobile Manufacturers Association.
Sales of imported vehicles with engines bigger than 3 liters jumped 27 percent during the same period while overall import vehicle sales grew 32 percent to 48,787, according to the Korea Automobile Importers & Distributors Association.
Ssangyong said March 21 it will add a total of seven new models, including as many as five sedans, within seven years to expand its lineup, which is currently focused on sport-utility vehicles. Ssangyong makes Actyon, Kyron and Rexton SUVs and Rodius minivans along with Chairman sedans now.