Mechanics wanted

To be sure, bringing expensive products and venturing into small cities comes with its challenges. Those include outpacing or misjudging market trends as well as bumping up against manpower constraints.

In particular, dealerships struggle to find qualified technicians who can earn 200,000 to 300,000 yuan annually.

"It's a problem in bigger cities but it's even tougher in smaller cities," said Mercedes-Benz's Choi about finding mechanics and technicians who can service high-end cars.

"There is a war for not only for the customers, but also for talent to work at the dealership, especially on the after-sales side."

Most luxury car makers first came to China with their flagship models, appealing to an older generation and a small class of well-connected and wealthy customers.

But steady growth in the world's second-largest economy has radically changed lifestyles of the younger generation who seek out luxury goods that announce their new status.

Luxury automakers are tripping over each other to appeal to this upwardly mobile and style-conscious class of consumers.

Audi is expanding its China portfolios to include the locally-made Q5 SUV in addition to its overseas-made models. Mercedes-Benz has introduced A-class and B-class cars to China and may start making GLK SUVs in its facility in Beijing next year. BMW has also been bringing in smaller, sportier models to beef up its portfolio.

"It's an amazing market," said Choi. "Never again will the automotive industry experience this kind of growth."