BMW Slashed Prices In China By Up To $42,000, And It’s Not Alone
In China, BMW cuts prices by up to 24 percent, narrowing the gap between list prices and dealer deals as the industry braces for more upheaval
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by Brad Anderson
BMW cut prices across 31 models to stay competitive in China.
Fourteen brands launched incentives before the New Year rush.
Officials fear price cuts could trigger harmful deflation risks.
Price cuts aren’t just a domestic strategy for Chinese automakers. Even Western legacy brands are jumping in. Last week, BMW announced sweeping reductions across 31 of its models in China, highlighting a more aggressive effort to keep pace with intensifying competition in the world’s largest auto market.
The biggest cut came to the BMW i7 M70L, the high-performance flagship of the all-electric 7-Series. This dual-motor sedan delivers 659 horsepower and 811 lb-ft (1,100 Nm) of torque. As of last week, it now carries a price tag that’s 301,000 yuan lower, a reduction of roughly $42,000.
Read: BMW Is Cranking Out Cars “Like Pretzels” And Says Even China Can’t Keep Up
While the i7 had the largest drop in raw numbers, the steepest percentage cut went to the iX1 eDrive25L. BMW trimmed the price of the long-wheelbase variant of the compact SUV by 24 percent, bringing the new starting figure to 228,000 yuan, or about $32,600.
BMW iX1
Speaking to Bloomberg, BMW said the price changes are part of its “regular price management,” adding that “final transaction prices are independently negotiated and determined between authorized BMW dealers and customers.”
How Far Will Discounts Go?
Behind the curtain, though, the timing suggests more than just routine recalibration. November marked the second straight month of declining sales in China, according to data from the China Passenger Car Association. That slide has spurred several automakers to adjust pricing.
Meanwhile, regulators have introduced measures designed to prevent brands from undercutting costs, prohibiting sales below production cost and banning dealer incentives that push prices beneath that threshold, Bloomberg reports.
Also: China Is Banning Tesla-Style Door Handles
BMW’s recent cuts appear to bring official pricing closer to what customers were already paying after negotiations. According to Yale Zhang, managing director at Automotive Foresight, the updated stickers largely reflect existing transaction norms rather than undercutting them. “The new prices aren’t any lower than typical dealer selling prices,” Zhang noted.
When Deals Become a Warning Sign
Big savings could be just around the corner. With the Chinese New Year approaching in February, many manufacturers are expected to introduce further incentives in hopes of front-loading first-quarter sales.
At least 14 car brands have already rolled out some form of discount or incentive program since the beginning of 2026. Zhang believes this trend is less a temporary blip than a reflection of broader pressures within the market.
“Various kinds of promotional activities may ebb and flow in the market from time to time, but they are here to stay,” Zhang told the news outlet.
Chinese authorities, meanwhile, are taking a cautious stance. With more manufacturers opting to slash prices, regulators are increasingly concerned about the potential knock-on effects. They worry that an extended period of discounts could spark deflation, disrupt the automotive supply chain, and put downward pressure on wages.
BMW X3 China
