Korean media: German luxury carmakers’ sales in China down 20% in first half of year!
On September 22, South Korean media outlet THE GURU published an article stating that the three major German luxury automakers—Mercedes-Benz, BMW, and Audi—have significantly reduced prices for their flagship models in the Chinese market. This move is seen as a strategic response to declining demand, driven by the rapid expansion of China’s electric vehicle (EV) sector, which has led to broad-based declines in sales among traditional German automakers.
Since the beginning of this year, Mercedes-Benz, BMW, and Audi have successively lowered the pricing of select flagship models sold in China.
The price reductions apply to models including the BMW 5 Series, Mercedes-Benz E-Class, and Audi A6L. Previously priced above 400,000 RMB, these popular models now start at between 300,000 and 400,000 RMB, with actual dealer prices often even lower.
The official suggested retail price for the BMW 525Li is 368,000 RMB, but after discounts, it drops to around 280,000 RMB. The starting price for the BMW 3 Series has also been reduced to approximately 258,000 RMB.
The final transaction prices for the Mercedes-Benz E-Class and Audi A6L have fallen by more than 100,000 RMB compared to previous levels, with some premium models offering discounts exceeding 200,000 RMB. The brands have also introduced various promotional measures, such as interest subsidies and additional discounts for VIP customers.
Weak sales performance is the primary driver behind these extensive price cuts. In the first half of the year, BMW sold approximately 262,000 vehicles in China, Audi around 233,000, and Mercedes-Benz roughly 210,000. Sales across all three brands declined by about 20% year-on-year.
To counter the rise of China’s new energy vehicle market, the three German automakers are accelerating their transition toward electrification. Audi has launched EVs under its dedicated brand targeting the Chinese market, while Mercedes-Benz is rolling out new electric models based on a fresh platform. BMW is preparing to locally produce vehicles built on its next-generation EV platform, Neue Klasse, within China.
Analysts note that although traditional luxury brands remain competitive in mechanical performance for their new energy offerings, they lag behind domestic Chinese rivals in areas such as advanced driver-assistance systems and over-the-air software updates. The upcoming launches of new EV models in 2024 and 2025 are expected to serve as critical benchmarks for whether German premium brands can regain traction in the Chinese market.
Original source: toutiao.com/article/1876997826220096/
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the position of any official body or institution.