BBA Gasoline Models Slide as Domestic Premium EVs Gain Ground

In the first half of 2026, sales of three mid-to-large luxury internal combustion engine sedans—the BMW 5 Series, Audi A6L, and Mercedes-Benz E-Class—all declined significantly. The BMW 5 Series recorded cumulative sales of 48,000 units, while the Audi A6L saw a year-on-year drop of nearly 30%. Monthly sales of the Mercedes-Benz E-Class also failed to exceed 10,000 units. Starting in May, dealerships of all three brands widely launched aggressive promotions: the entry-level Audi A6L dropped below RMB 260,000 (before taxes and options), the base Mercedes-Benz E-Class fell under RMB 270,000, and the entry-level BMW 5 Series was reduced to around RMB 260,000. Despite these price cuts, dealers continue to face operational challenges, with foot traffic heavily reliant on discounts and margins under persistent pressure. Meanwhile, domestically produced premium new energy vehicles (NEVs) saw rapid sales growth during the same period. Xiaomi’s SU7 delivered over 80,000 units in the first half of the year, ranking first among pure-electric sedans priced above RMB 200,000. Models like the Zeekr 001 and Avatr 12 also continued attracting both business and family users. In the SUV segment, the Mercedes-Benz GLC, BMW X3, and Audi Q5L all fell out of the top five in their respective category, as Chinese-made NEV SUVs took the lead in the mid-to-large SUV market. Surveys indicate that nearly 40% of new buyers upgrading to domestic premium NEVs previously owned vehicles from BMW, Benz, or Audi (collectively known as “BBA”), with their purchasing decisions now increasingly driven by intelligent features, cabin experience, and total cost of ownership.