BBA vehicles, which once commanded long queues and price hikes, are now experiencing a significant 'fracture' (i.e., drastic price reductions). The base price of the BMW 3 Series has plummeted below RMB 200,000, the Audi A6L has dropped into the RMB 250,000 range, and the Mercedes-Benz GLB has even fallen to just over RMB 140,000. This is not merely a price war; it signifies the complete collapse of traditional luxury car pricing power.

It appears that BBA is truly in a desperate situation. They were discussing price cuts at the beginning of the year, and the conversation continues. Will they implement further price reductions by the end of the year? The Chinese market, where selling a new car priced at RMB 100,000 yields only RMB 1,500 in profit, is fiercely competitive. Automakers can earn a mere RMB 1,500 per vehicle sold, with the current profit margin for automobile manufacturing standing at just 1.5%. From January to May 2026, the profit margin in the automotive industry has plummeted to 3.4%, well below the average of 6.1% for downstream industrial enterprises.

If BBA does not participate in this fierce competition, they may struggle to survive in China, as they find themselves trapped in a dilemma where 'price cuts erode profits, but failing to cut prices results in lost market share.' Many people inquire whether it is a good deal to buy now. I believe the answer depends on how one defines 'a good deal.' What is even more sobering is that in 2025, Mercedes-Benz sales in China plummeted to 575,000 units, a 19% year-on-year decline; BMW sales dropped to 625,500 units, a 12.5% decrease; and Audi sales declined to 617,500 units, a 5% drop. Data from the China Automobile Dealers Association reveals that the market share of luxury cars fell to 11.3% in January 2026, compared to 13.7% in 2023. Why? Because there are now better alternatives available. According to the JL&A Consulting '2025 China High-End Automotive Consumption Trends Report,' 45.3% of AITO M9 owners are former BBA owners. If it's merely for the logo, BBA vehicles are indeed at their historical lowest prices. However, one should be aware that the savings represent the residual value after the brand premium has diminished.

In the past, purchasing a BBA vehicle was synonymous with social currency and prestige. Nowadays, domestic new energy vehicles in the RMB 200,000-500,000 price range offer advanced intelligent driving capabilities, smart cockpits, and superior configurations.

Times have indeed changed. The right to define luxury has long been seized by users' demand for experience. A blogger who slandered the Xiaomi SU7 has been sentenced. Less than a year and eight months after launching 542 products, even BYD's vice president, known as the 'king of competition,' lamented that 'the competition is too fierce.' In response to false information about the Shangjie Z7, Shangjie Automotive's legal department took swift action. 'Xiaomo Huyu' Chu Neng's first ET vehicle rolled off the production line at the 'Wuhan SAIC-GM South Plant,' targeting the AITO M5. The end of an era: It took only 46 days for Tesla's Model S and Model X to go from production halt announcements to the dismantling of their production lines.