BMW sees China pricing stabilise after bruising 2025 slump

BMW is claiming that China’s bruising electric vehicle (EV) price war is beginning to ease, with Sales Chief Jochen Goller telling reporters on 18 March that transaction prices have stabilised and in some cases increased slightly against Q3 2025. The assertion comes after a 12.5% sales decline last year—the only major market where BMW fell—that forced the automaker to cut recommended retail prices across more than 30 Chinese models going into 2026, with some reductions exceeding CN¥300,000 (US$43,500).

The iX1 fell 24% to CN¥228,000, and flagship models including the i7 M70L were reduced by up to CN¥301,000. The cuts reflected a year in which domestic rivals eroded BMW’s pricing power and many dealerships slipped into loss-making territory. Porsche reported a 26% drop in Greater China deliveries and is cutting its dealer network from around 100 to 80 sites.

Prices are stabilising but this is not being matched by a change in demand. Passenger car sales in China fell 18.9% in the first two months of 2026, with EVs down 25.7%, largely due to the phased return of the vehicle purchase tax—reduced to 5% this year after full exemption in 2025 and due to return to 10% in 2028. 

BMW is pinning its hopes for a reversal on the highly-anticipated Neue Klasse series of EVs, with a China-exclusive long-wheelbase iX3 debuting at the Beijing Auto Show in April and a locally produced i3 sedan to follow in early 2027. It is also deepening local technology partnerships, incorporating DeepSeek AI into its in-car system and working with Alibaba-backed Banma on voice control, alongside a Momenta collaboration on driver assistance—the same 

BMW’s group net profit fell 3% to €7.45bn in 2025, which is mild when contrasted against Mercedes-Benz, whose net profit nearly halved. China’s weight in BMW’s volumes means a sustained recovery is likely a non-starter for the foreseeable future. BMW’s presence at the Beijing Auto Show will be the first test of whether the Neue Klasse can change the conversation in China back in its favour.