BMW is set to shock the luxury car market in 2026 by drastically reducing prices on over 30 models in China. Will this strategy help the company compete against rivals like BYD and NIO?
The Chinese luxury car market experienced a major upheaval on the first day of 2026 when BMW officially announced its biggest retail price adjustment ever. This is not just a typical promotion, but a decisive move in its strategy to protect its market share against the suffocating pressure from domestic electric vehicle brands.
The campaign, titled "In China, for China," kicked off with price adjustments for over 30 key BMW models. Notably, the price reductions were not symbolic but amounted to over 300,000 RMB (approximately 1.1 billion VND) for flagship models. Most models, from luxury sedans to mainstream SUVs, saw price cuts of over 10%, demonstrating the German automaker's aggressive strategy to reposition its products and reach a wider consumer base.
The hottest spot in this price adjustment is the electric vehicle segment, where BMW is directly competing with giants like BYD and NIO. The ultra-luxury electric sedan i7 M70L has seen a significant price reduction of 301,000 RMB, bringing the price down from 1.899 million RMB to 1.598 million RMB. However, the biggest surprise comes from the iX1 eDrive25L electric SUV, with a massive 24% cut, now starting at just 228,000 RMB. Even the iconic 7 Series has seen a 12% price reduction for the 735Li and 740Li Advanced versions, making luxury car ownership more accessible than ever for business people.
Instead of calling this a fierce price war, BMW cleverly defines this adjustment as a "system value upgrade." The reality is that the company's ambition to capture the younger customer segment is very clear. Previously, BMW only had three models priced under 300,000 RMB, but that number has now skyrocketed to 10. In particular, the 225L M Sport now starts at just 208,000 RMB, a price range that was previously the "holy grail" of domestic mainstream SUVs. This shows that BMW is willing to sacrifice high profit margins to create a barrier against the expansion of its Chinese competitors.
BMW's move is essentially a natural consequence of a rapidly changing market. While brands like Mercedes-Benz and Audi are quietly maintaining sales by selling below list price, BMW's public announcement of a record-low new MSRP (Mass Retail Price) is predicted to create a domino effect. In 2026, when the technology and cost of domestically produced Chinese cars reach a breakthrough, the long-standing reputation of European brands will no longer be the sole guarantee of success. BMW has chosen to adapt rather than remain conservative, and this race will undoubtedly have many more unexpected developments in the future.