BBA Slashes Prices, Shuffles Leadership, and Accelerates EV Shift in China

Since the beginning of 2025, Mercedes-Benz, BMW, and Audi (collectively known as BBA) have collectively lowered vehicle prices in the Chinese market. In early July, SAIC Audi reduced the starting prices of three internal combustion engine models—A7L, Q6, and A5L Sportback—to RMB 299,000, RMB 299,000, and RMB 259,900, respectively. Around the same time, FAW Audi slashed the base price of the A6L to as low as RMB 258,000. Earlier in the year, BMW led the way by adjusting the official manufacturer’s suggested retail prices (MSRPs) of 31 models, with 24 models seeing price cuts exceeding 10% and five models dropping by over 20%. The i7 M70L saw a direct reduction of RMB 301,000, bringing the entry-level 7 Series transaction price down to RMB 623,000, while the 225i Sport Package dropped to RMB 208,000. Starting in February, Mercedes-Benz cut recommended retail prices for key ICE models—including the C-Class, GLB, GLC, and GLC Coupe—by approximately 10%. Discounts on the E-Class reached RMB 110,000–135,000, while the GLB received maximum discounts of RMB 129,000, lowering its starting price to RMB 144,900. On February 25, SAIC Audi launched comprehensive incentives of up to RMB 30,000 for its first all-electric model, the E5 Sportback. Amid the rapid rise of domestic new energy vehicles (NEVs), BBA’s sales in China have declined significantly: Mercedes-Benz sold 575,000 units in 2025, down 19% year-over-year; BMW delivered 625,500 units, a 12.5% decline; and Audi sold 617,500 units, down 5%. According to data from the China Automobile Dealers Association, the premium segment’s market share fell from 13.7% in 2023 to 11.3% in January 2026. A report by Jelang Road Consulting revealed that 45.3% of Aito M9 owners previously owned BBA vehicles. Meanwhile, a McKinsey survey indicated that 50% of consumers are unwilling to pay a premium for multinational brands’ electric vehicles. In response to mounting market pressures, BBA made a series of senior leadership changes in China at the start of 2025. BMW announced that Christoph Grote would succeed Sean Green as President and CEO of BMW Group Greater China, effective April 1. Mercedes-Benz confirmed that Junjian Duan stepped down early, succeeded by Daniel Lischka as President and CEO of Beijing Benz Sales Company, with Mingxia Zhang appointed Executive Vice President of Sales. Audi named Daniel Weissland as General Manager of FAW Audi Sales Company, replacing Adrien Paccoud. All three automakers have designated 2026 as a pivotal year for transformation, accelerating their electrification and localization strategies. Mercedes-Benz is focusing on its MB.EA pure-electric platform and MMA architecture, while optimizing the MB.OS system to enhance smart cockpit experiences. BMW is betting heavily on its Neue Klasse EV architecture, integrating an 800V high-voltage system and sixth-generation eDrive technology to improve efficiency by 30%. The long-wheelbase version of the iX3, based on this platform, will debut at the 2026 Chengdu Auto Show with pre-sales opening then and deliveries starting in Q4, featuring Huawei’s HarmonyOS ecosystem, a 15.6-inch asymmetric curved display, and a 3D HUD. Audi, meanwhile, is deepening its collaboration with Huawei: the Q6L e-tron will be equipped with Huawei’s ADS intelligent driving system, and the A5L ICE model will integrate Huawei’s ADS 2.0.