Europe Can’t Keep Up: BMW Slashes Prices in China to Rock-Bottom Levels

BMW China has officially announced a sweeping adjustment to recommended retail prices across more than 30 key models in the Chinese market. For some of the brand’s flagship vehicles, prices are being cut by over 300,000 yuan—roughly $42,900.

Industry experts say the price cuts, which took effect on January 1, 2026, represent one of the most aggressive pricing moves ever made by a premium or luxury automaker in China.

The scope of BMW’s price reset is broad, affecting everything from top-tier luxury models to entry-level offerings. Prices on most vehicles are being reduced by more than 10%. One of the most eye-catching examples is the BMW i7 M70L electric luxury sedan, which saw its price drop by 301,000 yuan (about $43,000), from 1.899 million yuan ($271,000) to 1.598 million yuan ($228,000)—a steep 16% cut.

The biggest percentage drop applies to the BMW iX1 eDrive25L electric crossover. Its price fell from 299,900 yuan ($42,800) to 228,000 yuan ($32,600), a massive 24% reduction.

BMW’s flagship 7 Series sedans have also received significant discounts. The base 735Li now starts at 808,000 yuan ($115,400), down from 919,000 yuan ($131,300). The 740Li Advanced dropped from 1.069 million yuan ($152,700) to 938,000 yuan ($134,000). In both cases, prices were cut by roughly 12%.

BMW itself is careful not to call the move a “price war.” Instead, the company describes it as a “systematic increase in value.” According to BMW China, the cuts are part of its “In China, for China” strategy, aimed at improving accessibility and competitiveness by lowering the barrier to entry for the brand.

Before the adjustment, only three BMW models in China were priced below 300,000 yuan (about $42,900). After the New Year price cuts, that number has jumped to ten. The brand’s most affordable offering, the BMW 225L M Sport, now starts at just 208,000 yuan (around $29,700), putting it in the same price range as many mainstream Chinese crossovers.

Analysts of the Chinese auto market note that under intense pressure from domestic manufacturers, global premium brands such as Mercedes-Benz, BMW, and Audi have already been selling vehicles below official list prices for some time. The newly lowered MSRPs are expected to push real-world transaction prices even lower, intensifying competition in an already brutal market.