BMW has a small problem in China. The rise of domestic automakers continues to erode the luxury brand’s market share. Significantly cheaper, technology-packed cars are making life increasingly difficult for the old manufacturers. The downward trend highlights that the prestige of a badge is no longer enough as buyers continue to push for local products.
The sales numbers don’t lie. The BMW Group sold 625,527 cars in China last year, 12.5% less than the previous year. That’s a far cry from 2021, when demand peaked at 847,900 units. To counteract weakening demand, the company is lowering prices for 31 models as part of what it calls “regular price management.”
For example, the i7 M70L is now 301,000 yuan cheaper than before. At current exchange rates, that amounts to just over $43,000. In percentage terms, the iX1 eDrive25L sees the largest discount at 24%, bringing its price down to 228,000 yuan (US$32,700). BMW also suggests that discounts will be even higher than list prices once buyers haggle in dealer showrooms:
“Final transaction prices are independently negotiated and determined between authorized BMW dealers and customers.”
BMW hopes that locally produced and engineered Neue Klasse models will help reverse the decline. First and foremost is a long wheelbase iX3, which is expected to go on sale in the coming months. Codenamed “NA6,” it is one of several models designed specifically for the Chinese market. For years, Western-branded sedans and even SUVs have had stretched versions with extra rear legroom to better suit local preferences.
While sales are falling in China, BMW has seen stronger momentum elsewhere in 2025. Demand in Europe rose 7.3%, while sales in the Americas rose 5.7%, including a 5% increase in the US. Nevertheless, China remains the largest car market in the world and the largest single market for BMW.
While the glory days of BMW, Mercedes and Audi may be behind us, the German luxury trio remains firmly committed to the region as it battles homegrown brands. The BMW plants in Dadong and Tiexi are among the most productive in the group’s global network. In addition, the joint venture factory with Great Wall Motor in Zhangjiagang, which builds electric MINIs, is an important part of the company’s manufacturing footprint.
Source: Bloomberg
