BMW has announced significant price reductions across 31 of its models in China, part of a broader trend among automakers seeking to remain competitive in the world’s largest automotive market.
The move demonstrates that aggressive pricing isn’t limited to domestic Chinese brands; even established Western manufacturers are joining the effort to capture buyers amid intensifying competition.
The most substantial reduction in dollar terms affects the BMW i7 M70L, the high-performance electric flagship of the 7-Series. This dual-motor sedan produces 659 horsepower and 811 lb-ft (1,100 Nm) of torque. The new price represents a drop of 301,000 yuan, roughly $42,000, making it significantly more accessible to consumers.
While the i7 posted the largest raw-dollar reduction, the steepest percentage cut went to the iX1 eDrive25L, the long-wheelbase variant of BMW’s compact electric SUV. Its price was trimmed by 24 percent, bringing the starting figure to 228,000 yuan, approximately $32,600.
BMW characterized the price changes as part of its “regular price management,” emphasizing that “final transaction prices are independently negotiated and determined between authorized BMW dealers and customers.”
The timing of these cuts suggests that the automaker is responding to more than routine pricing strategy. Sales data from the China Passenger Car Association showed November marked the second consecutive month of declining vehicle deliveries, prompting automakers to adjust pricing to bolster demand.
Chinese regulators have also introduced measures to prevent extreme undercutting, including prohibiting sales below production cost and banning dealer incentives that push prices beneath that threshold.
BMW’s recent adjustments appear to align official list prices more closely with the prices buyers were already paying after negotiations.
With the Chinese New Year approaching in February, additional incentives are expected as manufacturers attempt to front-load first-quarter sales. At least 14 car brands have already introduced some form of discount or incentive program since the start of 2026.
Zhang observes that while promotional activity may fluctuate, it represents a long-term response to broader market pressures. “Various kinds of promotional activities may ebb and flow in the market from time to time, but they are here to stay,” he said.
Meanwhile, Chinese authorities are keeping a watchful eye. With more automakers slashing prices, regulators worry about potential knock-on effects, including deflation, supply chain disruptions, and downward pressure on wages, signaling that the rapid proliferation of discounts could have broader economic implications.
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