BBA has once again collectively lowered prices.
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The luxury car market is entering a deeper round of price revaluation.
Since 2026, the price competition among the three automakers—BMW, Mercedes-Benz, and Audi—has evolved from previous dealer-level “covert price cuts” to officially adjusting suggested retail prices and announcing public privilege prices. This round of price adjustments not only covers marginal or entry-level models, but also fully involves mainstay products that support luxury brand sales and pricing systems, such as the A6L, GLC, and C-Class.
Entering late July, Wallstreetcn has found that compared with prices at the beginning of the year, the prices of some BBA models have generally dropped by about 100,000 yuan compared to their early transaction prices, with some models dropping as much as 200,000 yuan.
This round of price cuts was initiated first by BMW.
From January 1, 2026, BMW China adjusted the retail guide prices of 31 models, with 24 models dropping more than 10% and 5 models dropping more than 20%. The flagship all-electric i7 M70L’s starting price lowered from 1,899,000 yuan to 1,598,000 yuan; the official guide price of the entry-level BMW 7 Series dropped from 919,000 yuan to 808,000 yuan, and after discounts at dealerships, transaction prices in some regions could be as low as 623,000 yuan.
Mercedes-Benz followed suit, adjusting the suggested retail prices of core gasoline models such as the C-Class, GLB, GLC, and GLC Coupe, with an overall drop of about 10%. For example, the C-Class guide price was reduced from 330,300–380,300 yuan to 304,600–345,600 yuan, and the terminal discount for the E-Class has reached 110,000 to 135,000 yuan.
Audi’s price adjustments have extended to its main models. In early July, SAIC Audi’s A7L limited-time privilege price dropped to a starting point of 299,000 yuan, with the Q6 dropping to the same amount. Under certain conditions, the entry-level FAW Audi A6L’s naked car price can be as low as 258,000 yuan.
Sales pressure is the direct factor behind price loosening.
In 2025, Mercedes-Benz sold 575,000 vehicles in China, a year-on-year decrease of 19%; BMW sold 625,500, down 12.5%; Audi sold 617,500, down 5%. In 2026, the situation hasn’t improved: in the first half of the year, BMW’s China sales fell by 20.4% year-on-year, Mercedes-Benz by 28%, and Audi by 19%.
Market share has also shrunk. Data from the China Automobile Dealers Association shows that in January 2026 the luxury car market share fell to 11.3%, compared to 13.7% in 2023.
Transaction prices continue to decline as well. According to Jielanlu Consulting, in 2025 the average transaction prices for Mercedes-Benz, BMW, and Audi were 417,000 yuan, 341,000 yuan, and 287,000 yuan, respectively; by May 2026, they had dropped to 375,800 yuan, 315,400 yuan, and 270,600 yuan, respectively.
Profitability is also under pressure. In 2025, Audi Group’s operating profit margin dropped to 5.1%, lower than 6% in 2024, and financial profits from Chinese operations fell from 651 million euros to 504 million euros.
On a more macro level, new energy vehicle (NEV) penetration continues to rise.
Data from the China Passenger Car Association shows that in June, retail sales of gasoline vehicles were about 600,000 units, a year-on-year decrease of 39%; NEV retail penetration has exceeded 60% for three consecutive months.
Consumers’ criteria for car purchases are shifting from mechanical performance to comprehensive indicators such as smart cockpit experience and assisted driving capabilities. According to a McKinsey survey, 50% of consumers refuse to pay a premium for foreign brand electric vehicles.
Facing market changes, all three luxury brands are urgently seeking to re-establish their pricing power in the Chinese market.
BMW is betting on the Neue Klasse all-electric-exclusive architecture, with the first model based on this platform—the next-generation BMW iX3 long-wheelbase version—set to launch for pre-sale at the Chengdu Auto Show in August.
Mercedes-Benz, meanwhile, is shifting to upgrade the EVA2 platform. The mid-size MB.EA-M sedan is still in progress, with the first mass-production all-electric GLC launched in July. For intelligence, urban navigation-assisted driving now covers the whole country, and the new Android smart cockpit will be installed starting in September.
Audi is choosing to deepen cooperation with Huawei: both the Q6L e-tron and A5L gasoline car are equipped with Huawei’s Qiankun Intelligent Driving System, while also promoting the jointly-developed AUDI brand with SAIC for the Chinese market.
In addition, all three have completed major management reshuffles in China at the beginning of the year.
Judging from current market feedback, price cuts have had a limited effect on boosting sales, and consumer wait-and-see sentiment has, if anything, increased. Whether the loosening of the price system will become a long-term trend remains to be seen.
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