BBA Brands Slash Prices Amid Slumping Sales

[Market Update] In 2026, the three German luxury automakers—BMW, Benz, and Audi (collectively known as BBA)—have simultaneously implemented significant price cuts, marking a historic shift in their pricing structures.

Core Trend: Key Models Drop Below Historic Price Floors

The base price of the Audi A6L has fallen to RMB 258,000, the entry-level BMW 3 Series now dips below RMB 190,000, and the post-discount on-road price of the Mercedes-Benz E-Class is approximately RMB 270,000. SAIC Audi’s A7L and Q6 now start at RMB 299,000, while the BMW i7 M70L has seen a direct price reduction of RMB 301,000.

Key Metrics: Persistent Sales Decline Coupled with High Inventory Pressure

In Q1 2026, Mercedes-Benz sales in China plummeted by 27% year-over-year, Audi dropped by 12%, and BMW declined by 10%. For the full year of 2025, Mercedes-Benz and BMW saw annual declines of 19% and 12.5%, respectively, with China no longer serving as BMW’s largest single market globally.

Strategic Underpinnings: Lagging EV Transition and Intensifying Competition from Domestic Brands

BBA faces dual pressures from delayed electrification strategies and rising competition from premium domestic EV brands such as NIO and Li Auto. Terminal discounts now commonly reach RMB 150,000 to 160,000, and dealers are highly motivated to clear inventory, signaling an accelerated end to the era of luxury brand pricing premiums.