During this year’s “golden September” sales season, BMW’s sales in China fell by 30.82% compared to the same period last year, making it the car manufacturer with the largest decline among the top ten overseas brands in September. Under pressure from declining sales, BMW has restarted a price war.
Traditionally, September and October are peak seasons for car sales in China, known in the industry as “golden September and silver October.” However, BMW experienced a significant decline in September this year. According to financial reports on October 22, BMW sold 44,801 vehicles in September, with the best-selling BMW 3 series witnessing a 15.38% year-on-year decrease, and the BMW 5 series a 32.64% decline.
Moreover, in August this year, BMW’s sales in the Chinese market were only 34,800 vehicles, a 42% year-on-year decrease and a 28.8% month-on-month decline.
Facing sales pressure, BMW has launched a price war, pricing its i3 series around 180,000 yuan. The newly launched BMW electric MINI has also been discounted, with the electric MINI COOPER starting price dropping from 209,800 yuan to 148,800 yuan and the electric MINI ACEMAN starting price reduced from 229,900 yuan to 163,900 yuan, with a decrease of 66,000 yuan.
Gao Xiang, President and CEO of BMW Group Greater China, mentioned the price war during the Chengdu Auto Show in September, saying, “The current price war is unhealthy and unsustainable for both car manufacturers, consumers, and dealers.”
In response to the market’s intensified competition and declining sales, many Chinese car manufacturers have been lowering prices since the beginning of this year, sparking a price war to seize market share. Initially, it was local Chinese brands, but soon after, many joint ventures and foreign brands had to join the price war.
However, BMW took the lead and withdrew from the price war in July. Financial reports at that time indicated that BMW’s decision to withdraw from the price war was both a reluctant move and a rational return. The price war not only failed to bring the expected market benefits to luxury car brands but also led to a loss of brand value and instability in the dealer network.
In the face of the disorderly competition in the Chinese car market, at the 2024 China Automobile Forum held on July 12, Deputy Minister of the Ministry of Industry and Information Technology of the Communist Party of China, Xin Guobin, acknowledged that consumer demand for cars in China is not strong, competition is exceptionally fierce, and disorderly competition has impacted the stability of the industry and supply chains.