The price easing reflects mounting sales pressure on traditional luxury brands. In 2025, Audi’s sales declined 5% year on year, while Mercedes-Benz and BMW fell 19% and 12.5%, respectively. BMW, Mercedes-Benz and Audi have rolled out aggressive price cuts in China at the start of China’s Spring Festival, with discounts on the BMW 7 Series reaching as high as RMB 270,000 ($39,220), according to a Chinese report based on dealership visits during the Lunar New Year holiday. Supported by state subsidies and manufacturer incentives, discount-driven promotions remain the dominant strategy in the luxury fuel vehicle segment, with most 4S dealerships releasing preferential policies ahead of the holiday. At Mercedes-Benz dealerships, discounts on multiple E-Class variants reached up to RMB 110,000 ($15,980), with some outlets offering as much as RMB 135,000 ($19,610) off. Mercedes-Benz E-Class The 2026 E 260 L Classic Edition, for instance, has a suggested retail price of RMB 429,900 ($62,400) but is being quoted at RMB 319,900 ($46,450). The GLB has also seen price adjustments, with maximum discounts of RMB 129,000 ($18,730) and entry prices falling to RMB 144,900 ($21,050). In early February, Mercedes-Benz officially announced price reductions of around 10% across core fuel models including the C-Class, GLB, GLC and GLC Coupe. Mercedes-Benz GLC 300 BMW has adopted similarly significant incentives. A dealership quotation sheet shows the 530Li Premium Edition, listed at RMB 525,000 ($76,230), being sold at RMB 357,000 ($51,850), representing a discount exceeding 30%. The 7 Series has seen the steepest reduction, at RMB 270,000 ($39,220). Since January, BMW has adjusted suggested retail prices for more than 30 key models, with reductions generally above 10%. Audi has also intensified discounting. The 2026 Audi A6L 40 TFSI Luxury Sport Edition carries a discount of up to RMB 151,000 ($21,930), bringing the transaction price down to RMB 276,900 ($40,220) from a list price of RMB 427,900 ($62,110). The Audi A7L has been cut by RMB 187,200 ($27,180), with the 2025 55 TFSI quattro RS Package Edition falling from RMB 666,200 ($96,600) to RMB 479,000 ($69,420). The Audi A3, featured as the prototype vehicle in the recent hit film Pegasus 3, has been offered at some dealerships for as low as RMB 100,000 ($14,530). Audi A3, featured as the prototype vehicle in the recent hit film Pegasus 3 The price easing reflects mounting sales pressure on traditional luxury brands. In 2025, Audi’s sales declined 5% year on year, while Mercedes-Benz and BMW fell 19% and 12.5%, respectively. In contrast, the high-end new energy vehicle segment remains active. In December last year, Huawei-backed Maextro S800 delivered 4,376 units in the over-RMB 700,000 ($101,710) ultra-luxury sedan category, up approximately 104%. Its single-month sales were nearly four times those of the Maybach S-Class and exceeded the combined sales of the Porsche Panamera, BMW 7 Series and Maybach S-Class. Maextro S800 Unlike traditional luxury brands, emerging EV makers have not implemented broad price cuts, instead lowering purchase barriers through financial incentives. Tesla introduced a seven-year low-interest financing plan in January, followed by similar measures from automakers like Xiaomi, Li Auto, XPeng and Geely.