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BMW slashes Prices by up to 24% in China to counter fierce market competition in 2026

BMW slashes Prices by up to 24% in China to counter fierce market competition in 2026

BMW China has officially announced a sweeping adjustment to the recommended retail prices of more than 30 key models, with some flagship vehicles seeing reductions exceeding 300,000 yuan (42,900 USD). The price cuts, which took effect on January 1, 2026, represent one of the most aggressive pricing strategies ever implemented by the luxury automaker in the Chinese market.

The scope of BMW’s price adjustment is comprehensive, affecting both flagship luxury models and entry-level vehicles, with most models seeing reductions of over 10%. Among the most notable changes, the premium i7 M70L electric sedan has been reduced by 301,000 yuan (43,000 USD), dropping from 1.899 million yuan (271,000 USD) to 1.598 million yuan (228,000 USD) – a 16% decrease.

The largest price reduction is for the BMW iX1 eDrive25L electric SUV, which fell from 299,900 yuan (42,800 USD) to 228,000 yuan (32,600 USD), a 24% cut.

BMW’s prestigious 7 Series executive sedans also received substantial discounts. The entry-level 735Li now starts at 808,000 yuan (115,400 USD), down from 919,000 yuan (131,300 USD), while the 740Li Advanced model has been reduced from 1.069 million yuan (152,700 USD) to 938,000 yuan (134,000 USD) – both representing 12% cuts.

BMW China’s 2026 recommended retail price adjustments

Model Original suggested retail price (CNY, incl. tax) New suggested retail price (CNY, incl. tax) Reduction
735Li ¥919,000 ¥808,000 12%
740Li Leading ¥1,069,000 ¥938,000 12%
740Li Prestige ¥1,269,000 ¥1,128,000 11%
i7 eDrive50L Leading ¥949,000 ¥808,000 15%
i7 eDrive50L Prestige ¥1,169,000 ¥988,000 15%
i7 xDrive60L ¥1,459,000 ¥1,328,000 9%
X7 xDrive40i Leading ¥1,039,000 ¥928,000 11%
X7 xDrive40i Prestige ¥1,229,000 ¥1,128,000 8%
X6 xDrive30i M Sport Package ¥799,900 ¥648,000 19%
X6 xDrive40i M Sport Package ¥885,900 ¥728,000 18%
X6 xDrive40i Prestige (M Sport Package) ¥975,900 ¥808,000 17%
X2 xDrive25i M Sport Night Package ¥349,900 ¥278,000 21%
X2 sDrive25i M Sport Package ¥316,900 ¥248,000 22%
225i M Sport Night Package ¥302,900 ¥288,000 5%
X1 xDrive25Li (X Design Package / M Sport Night Package) ¥349,900 ¥288,000 18%
X1 sDrive25Li (X Design Package / M Sport Package) ¥316,900 ¥258,000 19%
iX1 xDrive30L (X Design Package / M Sport Night Package) ¥339,900 ¥268,000 21%
iX1 eDrive25L (X Design Package / M Sport Package) ¥299,900 ¥228,000 24%
225L M Sport Night Package ¥279,900 ¥228,000 19%
225L M Sport Package ¥259,900 ¥208,000 20%
M760Le ¥1,819,000 ¥1,598,000 12%
i7 M70L ¥1,899,000 ¥1,598,000 16%
X7 M60i ¥1,729,000 ¥1,578,000 9%
i5 M60 ¥639,900 ¥558,000 13%
i4 M60 ¥549,900 ¥448,000 19%
X3 M50 ¥599,900 ¥599,000 0%
M240i ¥419,900 ¥398,000 5%
M240i xDrive ¥435,900 ¥418,000 4%
X2 M35i ¥419,900 ¥328,000 22%
X1 M35Li ¥409,900 ¥338,000 18%
M235L ¥363,900 ¥298,000 18%
Unit: yuan (¥). 7 yuan = 1 USD.

The German automaker has characterized this pricing strategy not as a “price war” but rather as a “systematic value upgrade.” According to BMW China, this move represents a concrete implementation of their “In China, For China” strategy, aimed at enhancing brand accessibility and market competitiveness by lowering the barrier to entry.

Prior to this adjustment, only three BMW models were priced below 300,000 yuan (42,900 USD), after the cuts, that number has increased to ten. The most affordable BMW, the 225L M Sport, now starts at just 208,000 yuan (29,700 USD), placing it in the same price bracket as many domestic Chinese SUVs.

Editor’s comment

Driven by fierce competition from Chinese automakers, international premium brands such as Mercedes-Benz, BMW, and Audi have been selling their vehicles below their Manufacturer’s Suggested Retail Price (MSRP) for some time. Theoretically, a decrease in the MSRP would translate to even lower actual selling prices.

Liu Miao covers NEVs and batteries at CNC to contribute to the energy transition, in spare time he loves driving his EV around.

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