Mercedes-Benz and BMW Slash Prices on Popular Models, Offering Up to 29.1% Discounts on Luxury ICE Vehicles

To alleviate dealers' mounting inventory pressures and price inversions, Mercedes-Benz and BMW have recently lowered the official manufacturer-suggested retail prices (MSRPs) for certain models. Effective February 1, Mercedes-Benz reduced prices by approximately 10% on popular models such as the C-Class and GLC. The entry-level C-Class price dropped from RMB 338,300 to RMB 304,600, while the GLC’s starting price fell from RMB 399,800 to RMB 351,800. BMW implemented similar adjustments across multiple models in January. Although these official price cuts have resulted in minimal changes to actual transaction prices at dealerships, they help narrow the gap between MSRP and final selling prices, thereby easing dealers’ cash flow pressures. Data shows that promotional discounts for premium internal combustion engine vehicles in China have reached a record high of 29.1% in 2025. Sales volumes for the "BBA" trio—BMW, Benz, and Audi—all declined year-over-year in the Chinese market, with Mercedes-Benz sales dropping by 19%. Experts note that while official price reductions may offer short-term relief for dealers, long-term competitiveness will depend on accelerating transitions toward new energy vehicles and advancing intelligent technologies to effectively counter the growing challenge posed by high-end domestic EV brands.