In China, BMW, Mercedes-Benz and Audi to Exit Price War, Focus on Stable Market
TapTechNews July 16th news, in the past few days, the topic related to 'BMW exiting the price war in China' has caused quite a lot of discussions. In response, BMW stated: 'In the second half of the year, BMW in the Chinese market will focus on business quality and support dealers to take steady steps.' According to Cai Lian News, after BMW, the other two luxury car brands in BBA, Mercedes-Benz and Audi, will also withdraw from the price war.
It is reported that on July 15th and 16th, reporters continuously visited the terminal market for two days. The salesperson of BMW revealed that compared to the highest discount at the end of June, the prices of all BMW models have been adjusted back, among which the prices of BMW X1, BMW X3, BMW 5 Series and BMW X5 have 'increased' by about 5,000, 8,000, 10,000 and 20,000 yuan respectively. Although the discount is still relatively large, the goal is to gradually return to a relatively stable market price. The price of the pure electric model BMW i3 has also been adjusted, and the current lowest installment naked car price is 206,000 yuan, which has increased compared to the previous price of 180,000 yuan.
In the case of Mercedes-Benz, although there is no official notice, the salesperson expects the price to be adjusted up. The sales situation of the Mercedes-Benz C-Class model is particularly noteworthy. According to the salesperson, for each C-Class car sold, the dealer will lose 70,000 yuan, and this unsustainable operating state forces Mercedes-Benz to reconsider its pricing strategy. The situation of Audi is also similar. The main selling models Q5L, A6L, and A4L have shown a slight price increase, and there may be subsequent adjustments, but the magnitude will not be too large.
TapTechNews noticed that the previous price war seems not to have brought an increase in sales to BMW and Mercedes-Benz. The latest data shows that in the Chinese market, BMW (including MINI) delivered 375,900 vehicles in the first half of the year, a year-on-year decline of 4.2%. Similarly, Mercedes-Benz delivered a total of 352,600 vehicles in the first half of the year, a year-on-year decline of about 6%. These luxury brands seem to have realized that the continuous price war is not a long-term solution.