BBA and Second-Tier Luxury Brands Slash Prices Amid Slumping Sales

Recently, due to declining sales, premium automakers including BMW, Mercedes-Benz, and Audi have implemented significant price cuts in the Chinese market. The base model BMW 3 Series 325 now has a manufacturer-suggested retail price (MSRP) of RMB 208,000, with an on-the-road price ranging from approximately RMB 225,000 to RMB 233,000. The entry-level BMW X1 2.0T is priced at RMB 166,000 before taxes and fees, bringing its total cost to around RMB 189,000. For Mercedes-Benz, the C260L’s base price has dropped to RMB 232,000, with a total on-the-road price of roughly RMB 260,000. The E260L’s base price has fallen to RMB 285,000, translating to an on-the-road price of about RMB 320,000. Meanwhile, the Audi A4L starts at around RMB 200,000 for the base model, with total costs between RMB 220,000 and RMB 230,000. Prices for some models have even fallen below those of certain domestically produced new energy vehicles. Price reductions among second-tier luxury brands have been even more dramatic. The Volvo S60 B5 Smart Edition, originally priced at RMB 306,900, now sells for as low as RMB 147,000 before taxes and fees, with a total cost under RMB 170,000. Many premium brands are adopting an aggressive “price-for-volume” strategy in an effort to maintain market share amid intensifying competition.