Having driven both H cars and BMW's (including owning several M cars) I can say that H Brand will sell them and that they aren't aiming to take market share from M. They have a long way to go to get the solidity and refinement of any BMW much less an M car.
I think they are aiming for an unanswered market niche. Enthusiast cars for people who don't want a previously enjoyed M (i.e. Worn out) or don't have $85K (starting) for an M car but still want more performance and feel than a standard H car.
I'm sure they will be decent cars an open a few eyes. But I don't see any true BMW enthusiast going down the street to get one.
Most anyone whose had an M car and has left the brand for a lesser brand probably wants to be back in an M car. Heck I drive a regular BMW and pine for my E90 M3 every day.
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