Mercedes-Benz Lowers Official Prices for Three Core Models Amid Luxury Price War

[Market Update] Mercedes-Benz has officially reduced prices for its C-Class, GLB, and GLC models, with the highest reduction reaching RMB 69,000.

Key Development: Mercedes-Benz Cuts Official Prices of Core Models by Up to 10%

Starting February 1, Mercedes-Benz adjusted the manufacturer's suggested retail prices (MSRP) for the C-Class, GLB, and GLC. Specifically, the C200 L saw a reduction of approximately RMB 33,000, certain trims of the GLB 200 dropped by RMB 38,000, and the GLC 300 Coupe experienced a price cut of RMB 68,000. Actual discounts at dealerships may be even greater.

Industry Impact: Price War Intensifies Among German Luxury Brands

Fellow German automaker BMW significantly lowered prices for multiple models starting January 1, 2026, with the i7 M70L receiving a direct reduction of RMB 301,000 and the iX1 eDrive seeing the highest percentage drop. High dealer inventory levels and price inversions have prompted manufacturers to revise their commercial policies.

Strategic Rationale: A Pragmatic Step Toward Alleviating Channel Pressure

The China Automobile Dealers Association under the All-China Federation of Industry and Commerce noted that although this price adjustment does not fully meet dealer demands, it will help unlock working capital, signaling Mercedes-Benz’s initial move toward optimizing its channel policies.