The German car giant BMW started 2026 with an unexpectedly aggressive move in its largest market, lowering the prices of a large part of its range in China. The large-scale revision, which came into effect on January 1, affected as many as 31 key models, with some of them receiving discounts of up to a staggering $43,000. This is not just a cosmetic change, but a strategic repositioning that rearranges the cards in the luxury segment.
The most drastic reduction is for electric flagships. The absolute record holder in terms of amount is the BMW i7 M70L, whose price was cut by 301,000 yuan (about $43,000). However, in percentage terms, the “title” grabbed the compact electric SUV iX1 eDrive25L, which is now 24% more affordable. These moves sent a clear signal to the competition that the Bavarians have no intention of giving up territory to local Chinese manufacturers.
It is curious how the “entry ticket“ for the BMW owners' club is changing. Before the New Year, only three models of the brand in China were offered for under 300,000 yuan, while now their number has swelled to ten. The most budget offer at the moment is the BMW 225L in the M Sport Package version, the price of which has fallen to the level of mass crossovers - just under 30,000 dollars. Well, this will certainly make many customers, targeting the middle class, seriously think about the prestigious emblem with white and blue.
Although market analysts have rushed to announce the beginning of a new price war, BMW China headquarters is maintaining its composure. They diplomatically avoid the term “war“ and prefer to talk about “systemic value upgrade“. According to the official announcement, the company is simply responding flexibly to market dynamics and refining its product strategy to remain as attractive as possible.
In fact, the truth is somewhere in the middle. In the conditions of slowing economic growth and fierce competition from local EV brands, BMW is forced to look for new ways to attract buyers. Reducing the recommended retail prices is a smart move that allows the brand to maintain its premium image, while simultaneously pressuring competitors in the lower price ranges. Whether this strategy will prove profitable will be shown by the financial statements at the end of the quarter.