BMW, Mercedes-Benz and Audi are running into a tougher market in China for a second year, so they are responding more bluntly: wider price cuts, quicker localisation, and a stronger push on EVs and cabin software.
A major Chinese media platform 36Kr said the German trio (often grouped as “BBA” in China) moved roughly 260,000 fewer units in 2025 than the year before, down about 12% overall.
It said Mercedes-Benz delivered about 575,000 vehicles in China in 2025 (down 19%), BMW Group (BMW and MINI) delivered 625,527 (down 12.5%), while Audi delivered 617,514 across mainland China and Hong Kong (down 5%).
BMW began 2026 with a broad list-price cut across more than 30 models from Jan 1, with many reductions above 10% and some cuts of more than 300,000 yuan (RM170,000). One example cited was the BMW iX1 eDrive25L, which dropped from 299,900 yuan to 228,000 yuan (RM129,000).
Mercedes-Benz did the same in early February with list-price changes on big sellers such as the C-Class and GLC, cutting roughly 33,000–69,000 yuan (RM19,000–URM39,000) depending on the version.
Other media reports also suggested early CLA EV numbers were hard to pin down after its November 2025 launch, with demand soft and dealers still working through stock in the compact EV segment.
Beyond pricing, 36Kr said the pressure is not just about discounts. China is no longer an easy “profit pool” for the German premium brands.
It said BBA’s combined share of China’s luxury-car market has fallen to around 50%, from roughly 80% in earlier years, as domestic brands pull premium buyers towards newer EVs and tech-first models.
That showed up in the main fight for volume. 36Kr pointed to a reshuffled mid-size SUV ranking in 2025, where Audi Q5L slipped to seventh, Mercedes-Benz GLC ranked eighth, and BMW X3 fell to 15th.
It also cited China Passenger Car Association commentary that the higher-price brackets shrank in 2025, including the 300,000–400,000 yuan (RM227,00) and 400,000+ yuan bands where BBA has long counted on scale and profit.
36Kr said 2026 looks like a turning point for BBA to claw back ground, with product and localisation plans moving faster.
It pointed to Mercedes-Benz’s line-up of more than 15 new or refreshed models for the year, and BMW’s plan to bring more than 20 products to China, including a long-wheelbase iX3 from the Neue Klasse programme.
