In a report from September 23, 2024, BMW China announced its withdrawal from the price war in the Chinese automotive market in July, leading to a significant drop in sales. Data shows that in August, BMW sold 34,800 vehicles in the Chinese market, a decrease of 42% compared to the same period last year. Recently, BMW has decided to lower the prices of related car models.
According to journalists from “Securities Daily” who visited several BMW sales outlets in Beijing, the price adjustment by BMW this time is quite substantial. Popular models such as the flagship all-electric i7, BMW 3 Series, and 5 Series have experienced varying degrees of price cuts. These series of price reduction measures are apparently aimed at boosting sales targets before the end of the year and making up for previous sales losses.
Reporters from “Whale Finance” contacted several BMW 4S dealerships to inquire about the situation. A sales representative mentioned, “Currently, the discounts on ordering cars are indeed larger than last month, but the extent of the discounts is not as significant as they were in June. For example, the price of a bare i3 model can be around 190,000 RMB, and specific prices can still be negotiated. It’s unlikely to reach the prices of June because there are no more cars left at that price. Next month, the i3 and 3 Series will introduce new models, and prices will not be as low when the new models are launched.”
Apart from the i3, models such as the 3 Series, 5 Series, and 7 Series also have varying degrees of discounts. However, the discounts on all-electric models are more substantial in comparison.
Regarding BMW’s return to the price war, a sales representative mentioned, “Just take a look at the online news; BMW has been a hot topic for quite some time. The recent price reduction is due to the pressure we face at the end of the month, so the discounts are larger, and prices will drop somewhat. The targets are not met yet, so the prices are at their lowest. Another reason is that models like the i3 and 3 Series are currently clearing out inventory, and when the new models come out in October, prices will not be as low.”
“Securities Daily” reported that industry insiders generally believe that BMW’s return to the “price war” is influenced by recent sharp declines in sales, market pressures, previous price hike strategies, and intense market competition.
On July 12th, there was a focus on the topic labeled as “BMW China to exit price war,” attracting attention. After over a year of the price war that not only failed to bring the expected market benefits to BMW but also severely damaged the brand image and profitability of dealers, BMW decided to withdraw from the price war in the Chinese market and adopt a “reduce volume, maintain price” strategy.
According to “Securities Daily,” an unnamed automotive industry analyst stated, “Currently, BMW is in a dilemma. Continuing to be embroiled in the ‘price war’ will undoubtedly erode its brand value and affect profit margins. However, without adopting an aggressive pricing strategy, it is difficult to effectively defend market share, leading to sustained downward pressure on sales. This current situation undoubtedly poses a serious challenge to BMW.”
(End of the article.)