Hot search! "BMW China slashes prices by 300,000 yuan"! What happened?

Source: Securities Times Network Author: Mei Shuang

The three traditional luxury car brands—Mercedes-Benz, BMW, and Audi (BBA)—once again become hot topics for price reductions. Recently, a related term “BMW slashes prices by 300,000” trended on social media.

BMW models’ prices “plunge”

It is reported that BMW China has adjusted the retail guide prices of 31 models starting January 1, 2026. Among these, 24 models saw discounts of over 10%, with 5 models dropping more than 20%. Notably, the flagship electric model i7 M70L was cut by 301,000 yuan, and the entry-level 225i M Sport package was reduced to 208,000 yuan, bringing the brand’s entry threshold to a historic low.

From sales data, BMW in China may face challenges from domestic brands’ high-end and intelligent transformation. Financial reports show that in 2025, BMW sold 1.018 million new cars in Europe, a 7.3% increase; in the U.S., sales were about 419,000 units, up 5%. However, in its largest single market, China, sales declined by 12.5% year-on-year to 626,000 units.

Mercedes-Benz, Audi, and others also couldn’t withstand the price pressure. In early February, Mercedes-Benz officially adjusted the prices of four main models: the C-Class was cut by up to 38,500 yuan, with a new guide price starting at 304,600 yuan; the GLC saw a maximum reduction of 62,500 yuan, with a new guide price starting at 351,800 yuan. On February 25, SAIC Audi announced that its first pure electric model, Audi E5 Sportback, would launch limited-time discounts, with total discounts up to 30,000 yuan.

Industry analysts believe that, in the short term, the price adjustments are a response to high inventory levels and excessive turnover days for fuel vehicles, aimed at clearing stock, recouping funds, and leveraging old-for-new policies. In the long term, as the penetration of new energy vehicles increases, the premium for fuel vehicles will disappear. The manufacturer-led official price cuts are also part of a process to return fuel vehicle pricing to product strength and create space for electrification transformation, reducing market bubbles.

BBA China management adjustments

Since the beginning of the year, BBA has announced key management changes in China.

On February 26, Audi China announced that Daniel Weissland will succeed Michael Arndt as General Manager of FAW Audi Sales Limited, effective April 1, 2026. Arndt will then become the Managing Director of Volkswagen Passenger Cars Korea.

Previously, BMW and Mercedes-Benz also announced leadership changes in China. For example, on January 30, BMW Group announced that Christian Ach will succeed Gao Xiang as President and CEO of BMW Group Greater China, starting April 1, 2026.

Industry experts generally see these personnel adjustments as urgent measures for BBA to address difficulties in China. The core mission of the new management is to break the sales decline, accelerate electrification and intelligent transformation, and strengthen the brands’ market position in China.

Currently, BBA has been promoting electric vehicle products in China, increasing R&D investment, and localizing development in areas such as autonomous driving, in-car interaction, and battery management. They have also established collaborations with local tech companies and supply chain partners.

Analysis indicates that 2026 will be a critical year for the launch of new pure electric platform models from BBA. BMW’s new generation, Mercedes-Benz MB.EA, Audi PPE platforms, and Audi’s joint development with SAIC on the AUDI brand will achieve mass production within the year. The work of product deployment, market promotion, and channel adaptation will enter an intensive phase, with the new management team fully involved in advancing and implementing these initiatives.

(Edited by: Wen Jing)