BMW China Responds to Rumors of Price War: No Adjustments to Suggested Retail Prices
Recently, rumors circulated that BMW decided to lower the prices of certain models in the Chinese market. Some believe that factors such as recent fluctuations in sales, market pressures, and intense competition have led BMW to re-enter a "price war." On September 24, a representative from BMW China responded to reporters, stating that in 2024, competition in the Chinese automotive market is intensifying, and nearly all brands face similar challenges. However, BMW has not made any adjustments to its suggested retail prices recently. Authorized dealers are free to set retail prices based on market conditions, with the final transaction price influenced by specific transaction circumstances.
Earlier, media investigations revealed that some BMW dealerships in Beijing had indeed lowered prices on popular electric models such as the i7, as well as the BMW 3 Series and 5 Series, with some price reductions being quite significant. Analysts suggest that these price cuts are clearly aimed at boosting sales before the year's end to make up for previous losses, indicating a potential return to price wars for BMW.
In response to the situation, reporters interviewed multiple BMW dealerships, and some staff indicated that they needed to boost sales by the end of the month due to significant pressure on sales targets. They noted that the recent price cuts are more aggressive than those seen in the past two months, but returning to the prices seen in June would be challenging.
BMW has previously achieved sales boosts through price wars, but this has harmed its profit margins. In July, BMW China announced its withdrawal from price wars. Gao Xiang, President and CEO of BMW Group Greater China, stated that price wars are unsustainable for manufacturers, dealers, and the market alike.