Author | Zhen Yao

Editor | Shen Tianxiang

Produced by | Bangning Studio (gbngzs)

"If you choose installments, the base version of the BMW 525Li M Sport Package can be yours for a bare car price of 295,000 yuan, with a down payment of just 48,800 yuan."

On April 9, at a BMW 4S store in Beijing's Chaoyang District, the sales consultant informed Bangning Studio: "We have cars in stock, you can take a test drive first, and if you decide, we can negotiate the price further upon signing the contract."

This indicates a price drop of nearly 150,000 yuan – the official guidance price for the BMW 525Li M Sport Package is 439,900 yuan.

Of course, there are additional expenses: the purchase tax is approximately 26,000 yuan, insurance costs around 14,000 yuan, and a vehicle delivery fee of 1,000 yuan. In total, the price comes to about 336,000 yuan.

"The loan term is also flexible, ranging from 2 to 5 years. If you borrow for 5 years (60 installments), the monthly repayment is 6,047 yuan, with an annual interest of 14,750 yuan." The sales consultant added, "Even with interest, it's still 4,800 yuan cheaper than a one-time full payment (full price bare car price of 326,000 yuan, purchase tax of 28,800 yuan)."

Upon further investigation, Bangning Studio found that significant price drops were not exclusive to BMW, but also applied to nearby Benz and Audi 4S stores, which were offering similar preferential policies.

"If you purchase the car in full, the Audi A6L 2025 Facelift 45 TFSI Premium Dynamic version, originally priced at 454,900 yuan, now has a direct discount of 118,200 yuan, bringing the discounted bare car price to 336,700 yuan." Zhang Wei, sales consultant at the Aojitong FAW Audi 4S store in Chaoyang District, Beijing, explained, "If you choose installment loans, the bare car price can be further reduced to only 286,600 yuan, a savings of 168,300 yuan from the original price."

Benz was also offering substantial discounts, with price reductions exceeding 100,000 yuan in the store. The sales consultant at the 4S store enthusiastically promoted: "It's a great time to buy now. For the base version of the Mercedes-Benz E260L, if you choose installment loans, the bare car price is only 298,000 yuan."

▲April 9, BMW, Audi, and Benz sales consultant quotation sheets

These significant price reductions have indeed attracted numerous consumers. "Currently, there are no cars in stock or on display. Customers can only take a test drive when they visit the store, and car orders need to be allocated." The Mercedes-Benz sales consultant mentioned that they sold 5 E260Ls in one month.

Once upon a time, the luxury car market was stable, with the German "56E" (BMW 5 Series, Mercedes-Benz E-Class, Audi A6L) forming an "iron triangle" that firmly occupied the high-end market for medium and large sedans. The BMW 5 Series used to have a landing price above 400,000 yuan, while the Mercedes-Benz E-Class and Audi A6L maintained high prices for an extended period.

Nowadays, all three flagship models have fallen below 300,000 yuan – has the world changed, or have consumers?

Surrounded by New Energy

It is the rise of new energy vehicle models that has altered the landscape for medium and large sedans.

In the pure electric market, emerging brands like Xiaomi and Zeekr have fiercely disrupted this segment with larger vehicle sizes and rich, diverse intelligent configurations.

Data shows that driven by popular models such as Xiaomi SU7, BYD Han, and Zeekr 001, the market for C-segment pure electric vehicles experienced explosive growth in 2024, with annual sales exceeding 500,000 units, a year-on-year increase of 69.6%.

In particular, Xiaomi SU7 emerged as a dark horse, topping the sales ranking with nearly 130,000 units sold.

In comparison, Audi A6L, the former dominator of the medium and large sedan market, although ranking second with sales of 94,600 units, experienced significant sales fluctuations. In February of this year, sales dropped to 10,000 units, a month-on-month decline of up to 90%. This steep drop serves as a wake-up call for traditional luxury brands.

BYD Han also performed well, ranking third with sales of 85,800 units. However, if BYD Han DM and EV models are included, their total sales exceed 126,000 units, demonstrating strong market competitiveness.

Times are increasingly difficult for the Mercedes-Benz E-Class and BMW 5 Series. Last year, sales of the former were 80,000 units, and the latter was 52,000 units. Especially for the BMW 5 Series, sales in February of this year were only 5,159 units, a month-on-month halving.

In addition, Zeekr 001 and Xiaopeng P7+ have emerged as new forces in the medium and large sedan market due to their unique product advantages and market positioning. Furthermore, the extended-range version of Xiangjie S9, which opened for pre-sale on March 20, poses a direct threat to the "56E".

Past data shows that the pure electric version of Xiangjie S9 has been the sales champion for seven consecutive months, successfully breaking through in the luxury sedan segment. The extended-range version of Xiangjie S9, with its advantages of no range anxiety and other upgrades, will introduce new variables into this market landscape.

Just a Prelude

Under the collective siege of Chinese new energy vehicle brands, BBA (BMW, Benz, Audi) has repeatedly broken defenses and resorted to price reductions as an emergency measure. This tactic may boost short-term sales, but in the long run, they must accelerate their intelligent and electric transformation.

"This round of price cuts highlights the embarrassment of BBA amidst the wave of new energy and intelligence. Once another powerful new car is launched, or if those new energy vehicles reduce their prices, the slight advantage gained by the '56E' through price cuts will instantly collapse," said an industry insider.

Furthermore, today's young consumers prioritize personalization, technological sense, and cost-effectiveness when purchasing cars, preferring emerging brands like Xiaomi SU7 and Xiangjie S9 that possess innovative technology and unique design. The brand aura that BBA prides itself on is becoming less appealing to younger generations.

Many private business owners told Bangning Studio that they have abandoned BBA. One in Hangzhou mentioned that he and some friends no longer drive Mercedes-Benz or BMW, having switched to intelligent new energy vehicles for their ease and comfort. Another in Wuhan said that driving a Mercedes-Benz now makes him feel uneasy, as if he were an environmental polluter.

Amidst this chilly wind, BBA is also accelerating its intelligent and electric transformation.

On March 25, BMW Group launched the "360-degree Full-Chain AI Strategy" in China, aiming to optimize production, research and development, user experience, and supply chain management with the help of artificial intelligence technology.

According to the plan, BMW will introduce its first locally produced new-generation model in 2026, equipped with an AI large language model and AI agents, making in-car interaction as natural and smooth as human-to-human communication.

On the Mercedes-Benz front, on March 14, the new CLA was globally unveiled. Ola Källenius, Chairman of the Board of Management of Mercedes-Benz AG, stated, "For Mercedes-Benz and our customers, the new CLA heralds a new era – it is the most efficient and intelligent car Mercedes-Benz has ever produced," "It opens the curtain for our upcoming strongest product offensive in history."

At the 2025 China Electric Vehicle 100 Forum on March 29, Audi China President Ralf Brandstätter said, "Audi is combining its global technology platform with unique functions and technologies specific to China," "Now Audi plans to use Huawei's ADS intelligent driving system on the PPC (Premium Combustion Engine Platform) and PPE (Premium Pure Electric Platform)."

However, BBA still faces numerous challenges.

First, their intelligent transformation is heavily reliant on Chinese technology companies like Huawei and Alibaba, which may be influenced by unpredictable factors.

Second, Chinese new energy vehicle brands have surpassed a 15% market share in the high-end market, posing a significant impact on BBA. For instance, new AITO M9 and M8 have received over 120,000 orders, directly challenging the Mercedes-Benz GLS and BMW X7.

Third, with the rapid rise of electrification and intelligence, BBA's brand premium has taken a severe hit. The collective fall of the "56E" below 300,000 yuan indicates a decline in their brand premium ability, casting a shadow over their future development.

2025 may become a watershed for the fate of BBA. The recent price fluctuations of the "56E" have effectively initiated the disintegration of the traditional luxury brand pricing system.

If BMW can consolidate its electric advantage, if Benz can successfully implement the "oil-electric intelligence" strategy, and if Audi can achieve intelligent breakthroughs with the help of Huawei, the "iron triangle" still has the potential to maintain dominance in the luxury car market for a certain period of time. Otherwise, Chinese luxury brands of new energy vehicles will harness the wave of technology to reshape this market landscape more swiftly and thoroughly.