Recently, bmw announced a recommended retail price adjustment for the 31 main vehicle types under its flag, effective 1 january, of which 24 were reduced by more than 10 per cent, 5 were reduced by more than 20 per cent and some were reduced by more than $300,000. This move leads the world to wonder if the bmw is going to play a “price war” in the chinese market。
In response, bmw responded that bmw pursues a virtuous development of “long-termism” in china rather than short-term profit. The adjustment was not a “price battle”, but a positive response to market dynamics by the bmw, which was proactive in adjusting its product strategy. It was suggested that the price increase was a value upgrading of some products and was intended to feed real benefits back to consumers and provide a higher value and more competitive product experience。
Specifically, the price reduction covered bmw fuel and new energy vehicles, with a particularly significant decline in the main power product. The top flagship vehicle net i7 m70l fell from $1. 899 million to $1. 598 million, making it the most significant of the decreases; the executive sedan 7 dropped from $919 million to $808,000 for the entry-end 735 li guide; and the suv model reduced the x1 series of srive25 li from $3169 million to $258,000, a 19 per cent decrease. In addition, the models x2, i4, i5, x6 were subject to varying levels of price reductions。
Behind this adjustment may also be associated with bmw's own performance pressure. According to the financial statements, in the first three quarters of 2025, the bmw cumulative operating income was euro99,999 million, a decline of 5. 6 per cent over the same period; revenue from the motor vehicle business block was euro87,164 million, a decrease of 4. 1 per cent over the same period; and pre-tax profits were euro8,056 million, a decline of 9. 1 per cent over the same period. In the chinese market, the decline in bmw sales was more pronounced, with a cumulative delivery of 46. 54 million new vehicles in the first three quarters, a decline of 11. 2 per cent over the same period。
So, can this move help the bmw achieve a boost in performance? It's worth observing。
