Audi and Other BBA Brands Slash Prices in China to Clear Inventory, Boost EV Incentives for Transition

Mercedes-Benz, BMW, and Audi have recently adjusted the official manufacturer's suggested retail prices (MSRP) for multiple models in the Chinese market. At the beginning of the year, Mercedes-Benz led the way by cutting prices for 31 models, with five seeing reductions exceeding 20%. BMW and Audi soon followed suit, with Audi implementing particularly significant price cuts. In early July, SAIC Audi lowered the starting prices of the A7L, Q6, and A5L Sportback to RMB 299,000, RMB 299,000, and RMB 259,900, respectively, while FAW Audi reduced the base price of the A6L to RMB 258,000. Some models now offer terminal discounts of up to RMB 150,000–160,000, primarily aimed at clearing inventory ahead of model replacements. Audi Group’s operating profit margin declined to 5.1% in 2025, with financial contributions from its China operations decreasing. Currently, Audi’s sales volume in China still heavily relies on internal combustion engine (ICE) models such as the A6L, Q5L, and A4L, as its new energy vehicle (NEV) offerings have yet to establish a significant market presence. In response to rising consumer interest in intelligent cockpits and advanced driver-assistance systems (ADAS), SAIC Audi has introduced a promotional policy: customers purchasing designated ICE models will receive lifetime eligibility for trade-in benefits toward future Audi NEVs, aiming to guide users toward its upcoming electric lineup.