--- title: "After BMW, Mercedes-Benz also significantly reduced prices. Why are luxury car giants \"lowering their stance\"?" type: "News" locale: "zh-CN" url: "https://longbridge.com/zh-CN/news/275224468.md" description: "Luxury car giants BMW and Mercedes-Benz have successively lowered prices, with BMW's price cut reaching up to 30%. Mercedes-Benz has reduced prices for the C-Class, GLB, and GLC models by 33,700 to 69,020 yuan, with a reduction of about 10%. This move is aimed at responding to the price war in the luxury car market and the impact of new energy vehicles, enhancing competitiveness. Mercedes-Benz is expected to deliver 575,000 new cars in 2025, a year-on-year decline of 19%" datetime: "2026-02-08T10:15:25.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275224468.md) - [en](https://longbridge.com/en/news/275224468.md) - [zh-HK](https://longbridge.com/zh-HK/news/275224468.md) --- > 支持的语言: [English](https://longbridge.com/en/news/275224468.md) | [繁體中文](https://longbridge.com/zh-HK/news/275224468.md) # After BMW, Mercedes-Benz also significantly reduced prices. Why are luxury car giants "lowering their stance"? At the beginning of the year, the news of BMW's significant price cuts sparked heated discussions in the market. Shortly after BMW's price reductions, Mercedes-Benz, another member of the luxury car giants BBA, also began to lower prices, prompting the question: what is happening with these luxury car giants? ## 1\. After BMW, Mercedes-Benz also significantly reduced prices According to a report from Fast Technology on February 2, the National Federation of Industry and Commerce Automobile Dealers Chamber stated that after verifying with several Mercedes-Benz brand dealers, the brand has adjusted the manufacturer's suggested retail prices for some models as of February 1. The adjustments mainly involve official price reductions for three key models: the C-Class, GLB, and GLC, with reductions ranging from 33,700 to 69,020 yuan, with a maximum reduction of about 10%. The core configurations and powertrains of these models remain unchanged, with only some versions of the C-Class being canceled to streamline the SKUs. This move is a strategic price adjustment aimed at responding to the price war in the luxury car market and the impact of new energy vehicles, with the goal of enhancing the competitiveness of the main selling models. However, it should be noted that this level of reduction does seem weaker compared to BMW, which is also a German luxury brand. Starting from January 1, 2026, BMW China will adjust the suggested retail prices for several key models, including flagship and entry-level models, with reductions generally exceeding 10%, and some models seeing official reductions of over 300,000 yuan. Regarding Mercedes-Benz, the National Federation of Industry and Commerce Automobile Dealers Chamber also suggested that the brand should quickly implement practical measures. In particular, adjustments should be made to business policies that have been strongly reflected by some dealers and have significant gaps compared to other brands, such as issues with rebate redemption (the redemption period for rebates is too long, with some exceeding 180 days, the longest among all mainstream brands; domestic Mercedes-Benz rebates cannot be withdrawn and can only be used to purchase vehicles). In 2025, Mercedes-Benz delivered a total of 575,000 new vehicles (including passenger cars and light commercial vehicles) in the Chinese market, a decline of about 19% compared to 714,000 in 2024. This sales figure is only higher than the 481,000 units sold in 2016, showing a significant gap compared to the peak of 774,000 units in 2020. The passenger car segment delivered 551,900 units in the Chinese market, also down 19% year-on-year. ## 2\. What is happening with the luxury car giants? Following BMW's lead in initiating price cuts, Mercedes-Benz quickly joined the price reduction camp. This phenomenon is like a heavy bombshell; luxury car giants have always presented themselves with an image of high-end, luxury, and high profits, yet they are now lowering prices significantly. What are the reasons behind this? Firstly, traditional luxury cars are generally facing enormous competitive pressure. It is quite normal for Mercedes-Benz to follow BMW in significantly reducing prices; the entire market is currently in a state of fierce competition. Traditional luxury car giants are under considerable competitive pressure, and choosing to lower prices to enhance competitiveness has become inevitable. The global automotive market has long since bid farewell to the golden era of rapid growth and has entered a new stage of stock competition, and the luxury car market is no exception. The previously monopolized landscape by BBA is gradually being broken, and the intensity of market competition has reached unprecedented heights. From the perspective of industry competition, the number of participants in the luxury car market is continuously increasing, with traditional competitors like Audi continuing to exert pressure, as well as strong impacts from high-end models of domestic brands and new energy forces, leading to a dilution of market share and a less stable dominance for traditional luxury car giants In this context, market supply far exceeds demand, significantly increasing consumers' choices and further weakening brand loyalty. No brand can maintain its original market position solely based on its historical prestige. For BMW and Mercedes-Benz, price cuts are not an aggressive strategy chosen proactively, but rather a passive response to market competition, and an inevitable choice to maintain market share and preserve industry status. Under the logic of stock competition, price has become one of the most direct and effective means of competition, especially when product differentiation is insufficient and brand advantages are weakened. By lowering prices to reduce consumption thresholds and attract more potential consumers, they can establish a foothold in the fierce market competition and avoid being eliminated. This price-cutting behavior is essentially a necessary adjustment for traditional luxury car giants to adapt to market competition and maintain their competitiveness. It is also an inevitable result of intensified industry competition, aligning with the basic logic in industrial economics that "companies maintain market share through price adjustments under stock competition." Secondly, BMW's price cuts have also had a significant impact on Mercedes-Benz. Currently, consumers view BMW and Mercedes-Benz as substitutes for each other. From a consumer habit perspective, BBA (BMW, Benz, Audi) is often considered within the same category of products. The relationship between Mercedes-Benz and BMW is more pronounced than that with Audi. If Mercedes-Benz remains indifferent after BMW's price cut, it is likely to push its potential consumers towards BMW. From the perspective of product positioning and consumer demand, BMW and Mercedes-Benz target highly overlapping customer groups, focusing on the mid-to-high-end consumer segment, covering multiple sub-sectors such as sedans and SUVs. In terms of price range, product functions, and brand tone, they exhibit strong substitutability. For consumers, when purchasing luxury cars, BMW and Mercedes-Benz are often the two primary brands for comparison. The choice between the two largely depends on detailed differences, brand preferences, and price factors. Especially when the price gap narrows or even tilts significantly, price becomes a key variable influencing consumer decisions. BMW's proactive price cut essentially breaks the price balance between the two, lowering the consumption threshold for its products, which will inevitably attract a large number of potential consumers who were previously on the fence or inclined towards Mercedes-Benz but sensitive to price. If Mercedes-Benz chooses to remain indifferent at this time and insists on its existing pricing system, it will fall into a passive situation of "strong product substitutability and no price advantage," unable to attract new consumers and potentially losing existing potential customers, further squeezing its market share by BMW. From the perspective of industry competition, this "price-following strategy among substitutes" is a routine operation for companies to maintain market competitiveness. Mercedes-Benz's price cut is essentially a passive response to BMW's price-cutting behavior, a necessary measure to retain its customer base and avoid market share loss, and an inevitable choice under the logic of substitute competition. Thirdly, insufficient transformation to new energy may be the core reason for Mercedes-Benz's price cuts. However, the root cause of the current price cuts among luxury car giants still lies in the traditional luxury cars' insufficient advantages in the transition to new energy, making it difficult to compete with new energy newcomers. With the growing global emphasis on environmental protection and sustainable development, the market for new energy vehicles is experiencing explosive growth. More and more consumers are beginning to pay attention to and choose new energy vehicles, which have become the future direction of the automotive industry However, traditional luxury car giants face numerous challenges in their transition to new energy. On one hand, these giants have accumulated deep technical expertise and experience in the fuel vehicle sector, forming relatively fixed R&D and production models. Transitioning to the new energy sector requires significant investment in technology R&D and production line transformation, which undoubtedly increases the costs and risks of the transition for these companies. On the other hand, new energy upstarts, leveraging their first-mover advantage and innovative spirit in new energy technology, have quickly carved out a place in the market. These new energy players attract a large number of consumers with intelligent configurations, environmentally friendly concepts, and more competitive prices, posing a significant threat to traditional luxury car giants. In this situation, traditional luxury car giants can only reshape their advantages through pricing. Lowering prices can reduce the threshold for consumers to purchase traditional luxury cars, attracting those who are hesitant about new energy vehicles or have a preference for traditional luxury brands. At the same time, price reductions can also alleviate the pressure on traditional luxury car giants during their transition to new energy, giving companies more time and space for technology R&D and market adjustments. Fourth, price wars have never been a sustainable competitive strategy. In the short term, lowering prices may boost sales, stabilize dealer networks, and relieve inventory pressure; but in the long term, excessive reliance on pricing strategies will severely damage brand value and weaken users' perception of "luxury." More dangerously, once trapped in a vicious cycle of "selling cheaper and cheaper, and the cheaper it gets, the less valuable it becomes," the brand's premium ability will be permanently impaired. For example, not long ago, while taking a taxi, I inadvertently ended up in the cheapest model, which turned out to be a Mercedes. At first, I thought there was something wrong, but when I saw it was a Mercedes EQA, it made sense. Although it is a Mercedes, the price has dropped to over a hundred thousand, and coupled with Mercedes' relatively poor electrification and intelligence levels, such models can only become a choice for ride-hailing services. The real solution lies in the innovation of the products themselves. This means that Mercedes and BMW must accelerate the iteration of their electric platforms and truly understand the redefinition of "luxury" by the new generation of consumers in China and globally. It is no longer just about leather seats and wood trim, but about the seamless experience of intelligent cockpits, the convenience of energy replenishment, and a service ecosystem throughout the entire lifecycle. Only by creating products that retain the essence of German engineering while integrating the genes of the digital age can they regain their voice in the new energy era. Otherwise, today's price cuts are merely buying a little breathing room for tomorrow's marginalization ### 相关股票 - [E Fund CSI Auto Components Thematic ETF (159565.CN)](https://longbridge.com/zh-CN/quote/159565.CN.md) - [REACH (301596.CN)](https://longbridge.com/zh-CN/quote/301596.CN.md) - [First Trust S-Network Future Vehicles & Tech ETF (CARZ.US)](https://longbridge.com/zh-CN/quote/CARZ.US.md) - [Wanma Tech (300698.CN)](https://longbridge.com/zh-CN/quote/300698.CN.md) - [Tema Luxury ETF (LUX.US)](https://longbridge.com/zh-CN/quote/LUX.US.md) - [Guotai CSI Hong Kong Connect Automobile Industry Thematic ETF (520720.CN)](https://longbridge.com/zh-CN/quote/520720.CN.md) - [Mercedes-Benz Group AG (MBGYY.US)](https://longbridge.com/zh-CN/quote/MBGYY.US.md) ## 相关资讯与研究 - [Mercedes-Benz Offering Free EV Charging Weekend in B.C. to Mark Network Launch](https://longbridge.com/zh-CN/news/281284896.md) - [Mercedes confirms steer-by-wire for 2026 EQS with questionable steering wheel](https://longbridge.com/zh-CN/news/281558423.md) - [Guan Chao's Loss Balloons in 2025](https://longbridge.com/zh-CN/news/281314987.md) - [Personal Ties Needed to Preserve Economic Relations with China, Mercedes-Benz Spokesperson Says](https://longbridge.com/zh-CN/news/277039297.md) - [Mahindra to raise SUV, commercial vehicle prices by up to 2.5% from April 6](https://longbridge.com/zh-CN/news/281543829.md)