BMW slashes prices across its China lineup to combat rising EV competition. Discover the savings and what this means for luxury car buyers! Read more.
BMW has announced substantial price reductions across its entire range in China, effective January 1st, 2026. This sweeping move, part of the company’s “In China, For China” strategy, sees discounts of up to 300,000 Yuan (approximately $42,900 USD) on select flagship models.
Widespread Price Adjustments
The price adjustments cover a broad spectrum of BMW’s offerings, from high-end sedans to popular SUV models, with most vehicles seeing a reduction of over 10%.
Facing Intense Competition
This aggressive pricing strategy signals BMW’s willingness to sacrifice profit margins to defend its market position against the growing dominance of domestic electric vehicle (EV) brands. The Chinese automotive market is rapidly evolving, and established European brands are facing unprecedented competition.
EV Models See the Biggest Savings
The most significant cuts are focused on BMW’s electric vehicle lineup, where the company is directly competing with industry leaders like BYD and NIO. The high-performance i7 M70L electric sedan has seen a price drop of 301,000 Yuan, bringing its price down from 1,899,000 Yuan to 1,598,000 Yuan.
However, the largest percentage reduction is on the iX1 eDrive25L electric SUV, with a 24% cut, now starting at 228,000 Yuan.
Even Iconic Models are Included
Even BMW’s flagship 7 Series sedan isn’t immune to the price adjustments. The 735Li and 740Li Advanced models have both been reduced by 12%, making them more accessible to business professionals.
“Value System Upgrade”
While many see this as a fierce price war, BMW is framing it as a “value system upgrade.” A company representative stated that this is a concrete step in the “In China, For China” strategy, aimed at enhancing competitiveness and lowering the barriers to luxury car ownership for Chinese consumers.
Prior to this adjustment, BMW had only three models priced under 300,000 Yuan. That number has now increased to ten.
Targeting Younger Buyers
Notably, the 225L M Sport now has a starting price of just 208,000 Yuan – a price point previously reserved for mainstream domestic SUVs. This indicates BMW’s intention to capture the younger, price-sensitive demographic.
Following Industry Trends
BMW isn’t alone in this strategy. Other international luxury brands like Mercedes-Benz and Audi have also been selling vehicles below the Manufacturer’s Suggested Retail Price (MSRP) for some time to maintain sales volume in China. This latest adjustment to BMW’s MSRP is expected to drive actual sales prices at dealerships to record lows.
A Changing Automotive Landscape
This is a natural consequence of a rapidly changing automotive market where the reputation of established European brands is no longer a guaranteed advantage against the technological advancements and attractive pricing offered by Chinese automakers in 2026.