BMW Restarts Price War After Sales Drop, With Big Price Cuts for Models
TapTechNews September 20th news, comprehensively reported by TechWeb and Gelonghui today, BMW is now'restarting' the price war and significantly reducing the prices of its models due to a significant drop in sales after the price increase, in order to achieve this year's sales target.
It is reported that the main reason why BMW is returning to the price war this time is to seize the market window. The price reduction range of BMW's flagship pure electric model i7 in many 4S stores across the country has reached 38%, and the maximum reduction has reached $850,000 (2023 xDrive60L, original price $2,240,000), and the naked car price has come to $1,387,600 (2023 eDrive50L, original price $1,460,000).
Before this, BMW had tried to increase the profit margin through price increases, but this strategy was not recognized by the market, but instead aggravated the trend of sales decline. Data shows that in August, BMW sold 34,846 new cars, a sharp drop of 42% compared to the same period last year, a decrease of more than 20,000.
And according to TapTechNews' previous report, in July this year, there was a rumor that due to the price war causing serious losses in stores, BMW will stabilize the price by reducing the sales volume to ease the operating pressure of the stores.
In response to the rumor that BMW China will withdraw from the price war, BMW China responded at that time that in the second half of this year, BMW will focus on business quality in the Chinese market and support dealers to make steady progress.
However, during the Chengdu Auto Show this year,高乐, President and CEO of the BMW Group in the Greater China region, said, The current price war is unhealthy and unsustainable for both automakers, consumers and dealers. BMW has not made any adjustments to the recommended retail price recently, and the main measure taken is to give dealers greater flexibility in the second half of this year. They independently decide the terminal retail price when selling according to the market situation, and the manufacturer has no right to interfere.