BMW cuts list prices in China, plays down price war concerns

by SONG Jianan

BMW China has lowered suggested retail prices for 31 core models from January 1, 2026, with cuts of more than 10 percent on most vehicles and reductions exceeding 20 percent on several, a move that has fueled speculation about renewed price competition in China's auto market.

The German carmaker said the adjustments reflect a recalibration of official list prices rather than a shift toward aggressive discounting. In response to inquiries from Jiemian News on January 3, BMW China said final transaction prices remain at dealers' discretion and rejected claims that it is engaging in a price war.

The company said the pricing changes are part of a broader product and strategy update aimed at responding to shifting market conditions. It stressed that BMW the move aligns with its long-term approach in China, rather than a focus on near-term profitability, and is designed to enhance value for consumers.

The repricing covers both fuel-powered vehicles and new energy models, with flagship cars seeing the sharpest cuts. The all-electric i7 M70L, BMW's top-end electric sedan in China, has been reduced to 1.598 million yuan from 1.899 million yuan, while the i7 eDrive50L Premium has been cut by 180,000 yuan to 988,000 yuan. In the 7 Series lineup, price reductions of about 12% have been applied across several variants.

Among volume models, the X1 compact SUV has seen cuts of close to 20 percent, while the locally produced M235L now starts below 300,000 yuan for the first time, underscoring the pressure on pricing even at the entry level.

The pricing reset comes as China, BMW's largest single market, continues to underperform. The BMW Group reported €32.3 billion in third-quarter revenue, down 0.3% year on year, while revenue for the first nine months fell 5.6% to about €100 billion. Earnings before tax over the same period declined 9.1 percent.

In China, BMW delivered 465,400 vehicles in the first nine months of 2025, an 11.2 percent drop from a year earlier, highlighting the scale of the challenge facing foreign premium brands as competition intensifies and demand growth slows.

Oliver Zipse, chief executive of BMW Group, said on an earnings call that the group is prepared to adjust its dealer network and accelerate the rollout of models better suited to Chinese consumer preferences. However, he cautioned that BMW does not expect rapid sales growth in China in the near term, at least through 2026 and 2027.

Analysts said the price cuts appear aimed at easing short-term sales pressure while paving the way for a broader shift toward next-generation models. As competition in China's luxury car market increasingly moves beyond branding toward technology and value, the adjustments could foreshadow similar recalibrations by other members of Germany's premium trio, Mercedes-Benz, BMW and Audi.