The competitive landscape shows that the rise of domestic high-end new energy vehicle brands is significantly impacting traditional luxury automakers. On the morning of February 25th, the hashtag "#BMW7SeriesPriceCutByApproximately270k" surged to the top of trending searches.
According to reports, a considerable number of potential car buyers were viewing and selecting vehicles during the Spring Festival period. Particularly in the luxury internal combustion engine vehicle market, driven by factors such as national subsidies and manufacturer incentives, promotional discounts and price reductions remain the dominant theme. It is noteworthy that the promotional activities by luxury brands like BMW, Mercedes-Benz, and Audi were not specifically timed for the Spring Festival. Investigative findings reveal that most authorized dealerships had already rolled out their preferential policies before the holiday. For Mercedes-Benz, several dealerships offered discounts of up to 110,000 yuan on various E-Class models, with the maximum discount reaching 135,000 yuan. The 2026 E 260 L Classic edition, for instance, saw its price reduced to 319,900 yuan after discounts, down from a guide price of 429,900 yuan. The Mercedes-Benz GLB model received a maximum discount of 129,000 yuan, bringing its starting price down to 144,900 yuan. Regarding BMW, a price list obtained from a dealership salesperson indicated that the BMW 530Li Exclusive model, with a guide price of 525,000 yuan, was being offered at an actual terminal price of 357,000 yuan—a discount of 160,000 yuan, representing a price drop of over 30%. The highest discount on the BMW 7 Series reached 270,000 yuan.
For Audi, the Audi A6L 2026 40 TFSI Luxury Sport model received a discount of up to 151,000 yuan, lowering its price to 276,900 yuan from a guide price of 427,900 yuan. The Audi A7L saw a direct price reduction of 187,200 yuan, with the 2025 55 TFSI quattro RS kit racing edition dropping from 666,200 yuan to 479,000 yuan. The Audi A3, which served as inspiration for a popular film, was available at some dealerships for as low as 100,000 yuan. Online commentators remarked on the significant discounts, with some stating, "The discounts are huge, something unimaginable a few years ago," and "We have to thank new energy vehicles for this." Others pointed out that "subsequent maintenance costs are the major expense."
Previous reports indicated that by January 10th, over 20 major automakers had intensively launched promotional policies covering more than 75 models, spanning all segments from fuel-powered to new energy vehicles and from economy to luxury brands. The most aggressive players in this round of price reductions were not the emerging automakers but traditional luxury brands, exemplified by BMW and Cadillac. From a market competition perspective, the emergence of domestic high-end new energy brands has substantially challenged established luxury marques. Public data shows that from January to September 2025, Chinese brands accounted for over 80% of the high-end new energy vehicle segment priced above 300,000 yuan, establishing absolute dominance. More than 80% of reservation holders for domestic high-end new energy models were previously owners of traditional luxury brands like BMW, Mercedes-Benz, and Audi. McKinsey's "2025 China Auto Consumer Insights Report" highlighted that Chinese auto consumption is shifting from being "brand-oriented" to "value-oriented." Younger, high-income demographics are increasingly focusing on product technology and intelligent features, a trend that further erodes the pricing power of traditional luxury brands.
The escalating price war is also corroding the brand strength of luxury automakers. Mr. Li, who purchased a BMW 330Li M Sport Night Edition in 2022, reported that the total cost at that time was approximately 410,000 yuan. Currently, the same model is available for around 260,000 yuan after discounts. "In less than four years, the price has dropped by 150,000 yuan. Both the resale value and the brand prestige are fading," he commented. In related coverage, when BMW announced its price adjustments, automotive analyst Ling Ran noted that the move represents a necessary but reluctant strategy for traditional luxury brands during this market transition. While effective in the short term for alleviating inventory and profitability pressures on dealerships, Ling Ran suggested that without achieving substantive breakthroughs in electrification and intelligent technology, merely adjusting the pricing structure is unlikely to reverse declining sales in China. Furthermore, such a strategy risks further weakening the brand premium painstakingly built over the long term, potentially accelerating customer migration towards domestic high-end new energy brands.
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