In Order To Remain Competitive In China, BMW Reduced The Price Of 31 Models

BMW last week announced deep discounts on more than 30 of its vehicles in China, highlighting more aggressive efforts to keep up with intensifying competition in the world’s biggest auto market.

The biggest reduction is for the BMW i7 M70L, the high-performance flagship of the all-electric 7 Series. This twin-engine sedan delivers 659 horsepower and 1,100 Nm of torque. As of last week, it is priced at 301,000 yuan lower, a reduction of about $42,000.

While the i7 had the largest drop in raw numbers, the iX1 eDrive25L experienced the largest percentage decrease. BMW has cut the price of the long-wheelbase variant of the compact SUV by 24 percent, bringing the new starting figure to 228,000 yuan, or about $32,600.

Speaking to Bloomberg, BMW said the price changes are part of its “regular pricing management,” adding that “final transaction prices are independently negotiated and determined between authorized BMW dealers and customers.”

Behind the curtain, however, the timing suggests more than just a routine recalibration. November marked the second straight month of sales declines in China, according to data from the China Passenger Automobile Association. That decline prompted several automakers to adjust prices.

Meanwhile, regulators have introduced measures designed to prevent brands from cutting costs, banning sales below the cost of production and banning incentives for dealers who push prices below that threshold, Bloomberg reports.

BMW’s recent cuts appear to bring official prices closer to what customers were already paying after negotiations. According to Yale Zhang, CEO of Automotive Foresight, the updated prices largely reflect existing transaction norms. “The new prices are no lower than typical dealer sales prices,” Zhang noted.

Big savings could be just around the corner. With the Chinese New Year approaching in February, many manufacturers are expected to introduce additional incentives in the hope of boosting sales in the first quarter.

At least 14 car brands have already introduced some form of discount or incentive program since the start of 2026. Zhang believes this trend is less a temporary downturn and more a reflection of broader market pressures.

“Various types of promotional activities may change from time to time in the market, but they are here to stay,” Zhang told the news agency.

Chinese authorities, meanwhile, are taking a cautious stance. With an increasing number of manufacturers deciding to cut prices, regulators are increasingly concerned about the potential consequences. They worry that an extended discount period could cause deflation, disrupt the auto industry’s supply chain, and put downward pressure on wages.

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