Mercedes, BMW, and Audi Slash Prices Amid Slumping Sales—Some Models Discounted by Over $38,000

In April 2026, premium automotive brands including Mercedes-Benz, BMW, and Audi rolled out significant price discounts in the Chinese market. The official manufacturer's suggested retail price (MSRP) for the Mercedes-Benz E260 is RMB 378,800, but its actual transaction price at dealerships has dropped to around RMB 300,000. Similarly, the C 200 L Sport model, with an MSRP of RMB 304,600, is now selling for just over RMB 220,000—a discount exceeding RMB 80,000. For BMW, the 525Li, priced officially at RMB 368,000, is available for as low as RMB 280,000 for the base vehicle when purchased on installment—representing a discount of nearly RMB 90,000. Discounts on the flagship 7 Series reach RMB 270,000, while models like the i7 M70L have seen price cuts exceeding RMB 300,000. Audi’s all-new ninth-generation A6L starts at RMB 322,900, marking an official price reduction of RMB 105,000 compared to the previous eighth-generation model. These aggressive price cuts are primarily driven by declining sales: in the first quarter of 2026, Mercedes-Benz sales in China fell by 27% year-over-year, while BMW and Audi saw declines of 10% and 12%, respectively. Domestic new energy vehicle (NEV) brands, leveraging advanced intelligent features and lower ownership costs, are rapidly capturing market share in the premium segment above RMB 300,000, intensifying competitive pressure on traditional luxury internal combustion engine vehicles. Additionally, high inventory levels and accelerated model replacement cycles have prompted dealers to ramp up promotions to clear stock and recover capital.