Declining sales and overlapping product launches have become the epitome of BMW's current embarrassment.

On November 2, BMW held the BMW M Passion Festival at the Chengdu Tianfu Circuit, marking the brand's return to such events after a five-year hiatus. The event was set to unveil the new BMW M5 and BMW M 1000 XR motorcycle, along with the debut of the new BMW M235L four-door coupe.

However, an unexpected incident occurred during the motorcade performance arranged by BMW at the event, as two vehicles collided in a rear-end accident, sparking heated discussions among netizens about BMW's performance. Adding insult to injury, the brand's declining sales and the succession of dealership bankruptcies have questioned the validity of its business model.

I. Sudden Rear-End Collision Turns Launch Event into an Accident Scene

According to online videos, during the dragon dance motorcade performance at the BMW 2024 BMW M Passion Festival, a red BMW M4 at the end of the formation failed to brake in time at a turn and crashed into the green BMW M4 in front of it. The front of the red BMW triggered its protective mechanism due to the impact, causing the hood to pop up.

The loud collision startled the audience, and the video quickly went viral, becoming a hot topic of online discussion. Many netizens questioned the safety hazards of BMW's automatic braking system, bluntly stating that it was "like a toy car" and wondering "who the unlucky soul would buy these two cars".

A video poster who attended the event also expressed on social media, "When we were just marveling at how close it came to a collision, it actually happened." They also mentioned encountering a BMW 1M motorcade on their way home, where two cars nearly collided again while exiting a ramp, creating a dangerous situation.

It's important to note that the "protagonist" of this accident, the BMW M4, has a domestic price range of 893,900 to 1,013,900 yuan, positioning it as a high-performance luxury car. It has repeatedly claimed to be equipped with ventilated brake discs and offers an optional carbon-ceramic brake system to ensure safety and stability during high-intensity driving.

The reason for arranging 12 M-Series models as the performance lineup for the event was to showcase BMW's stable handling performance and flexible turning radius through an ∞-shaped route, creating momentum for the launch of the new M-Series models. However, the carefully planned performance ultimately did not meet expectations.

Nevertheless, after reviewing the video, some netizens analyzed that the BMW M4 did not "fail to brake"; the actual responsible party for the accident was the green car that suddenly braked in front. The driver had already left the maximum possible braking distance but still could not avoid the accident, which could only be blamed on the close following distance and excessive speed during the performance.

For a time, public opinion fluctuated regarding BMW's car performance and the driver's errors, and the heat of the accident overshadowed the launch event itself. As of press time, BMW had not officially responded to the incident, but such a rear-end collision concerning vehicle safety at such a significant event undoubtedly spells a crisis for the brand's reputation.

II. Price Increase Against the Trend, Domestic Sales Struggle to Rebound

Turning our attention to BMW's newly launched next-generation BMW M5, the official guidance price starts at 1,468,900 yuan. This model features the latest 4.4T V8 engine and electric motor plug-in hybrid system, with a maximum power of 727 horsepower and a peak torque of 1,000 Nm.

BMW also revealed that the next-generation BMW M3 will adhere to the fuel version while introducing an electric version equipped with four motors and a highly integrated driving dynamics control system. This will delve deeper into various market segments, gradually improving the brand's product line to cover fuel, hybrid, and pure electric drive modes.

In the view of Gao Xiang, President and CEO of BMW Group Greater China, the BMW M Series serves as the brand's innovation "incubator." BMW has designated 2024 as a big year for M-brand products, planning to bring 10 high-performance and performance-oriented new cars to the Chinese market within the year, expanding its model lineup in China to 23 by the end of the year.

However, the fact is that since announcing its withdrawal from the price war in July this year, BMW's sales performance in the Chinese market has been sluggish. In August, domestic sales were only 34,800 units, representing a month-on-month decrease of 28.81% and a near-halving compared to the approximately 60,000 units sold in the same period in 2023.

In September 2024, BMW's domestic sales for the month were 44,800 units, down 30.82% year-on-year, widening the gap with Audi and Mercedes-Benz. BMW i3, its representative model in response to the "price war," only sold 2,355 units after a price adjustment, less than half of the 6,074 units sold in the same period in 2023.

According to the latest third-quarter sales data released by BMW Group, the brand delivered a total of 147,700 new vehicles in the Chinese market during the quarter, a sharp year-on-year decrease of 29.8%. This decline was more significant than in other countries and regions, directly contributing to a 13% drop in BMW Group's global sales to 540,900 units in the third quarter.

Moreover, due to the sudden implementation of BMW's price adjustment policy, many dealerships forced customers who had already ordered cars before the price increase to pay more for delivery. Although BMW responded that it was actively communicating with relevant dealers to protect consumer rights, this move undoubtedly damaged the brand's market reputation.

An automotive industry analyst told Securities Daily that BMW is currently in a dilemma. Continuing to engage in the "price war" will undoubtedly erode its brand value and affect profit margins; however, not adopting an aggressive pricing strategy will make it difficult to effectively defend market share, leading to continued downward pressure on sales.

III. Poor Management Leads to Multiple Store Closures Due to Losses

Forced by the sales situation, BMW had no choice but to return to price competition.

According to ECVV, BMW dealers in Beijing announced limited-time discounts on the iX1, i3, and iX3 models. The discounted prices started at 188,800 yuan for the BMW iX1, 208,800 yuan for the i3, and 251,800 yuan for the iX3.

However, BMW clarified that it had not adjusted the recommended retail price and that authorized dealers could independently determine retail prices based on market conditions, with final transaction prices affected by specific trading situations. From this perspective, under increasing operational pressure, most BMW dealers began spontaneously seeking self-preservation by lowering prices.

Recently, BMW's first global 5S store, Beijing Xingdebao Automobile Sales and Service Co., Ltd. (hereinafter referred to as "Beijing Xingdebao"), officially announced its closure. According to the announcement, Beijing Xingdebao is currently facing severe financial pressure, and the group is actively seeking capital injection or other group trusteeship solutions to address the current difficulties.

Beijing Xingdebao stated that its BMW brand authorization ended on October 20, 2024, and the company has suspended new car and after-sales-related businesses. To smoothly and quickly achieve capital injection or trusteeship, the company has summarized relevant data and customer rights and interests according to corresponding procedures.

However, on social media, many consumers have reported purchasing maintenance services worth tens of thousands of yuan when ordering cars, but now these services cannot be fulfilled, and refunds have become problematic. Additionally, Beijing Xingdebao employees have reported being owed wages for nearly four months and have entered arbitration proceedings.

China Entrepreneur magazine sent an interview request to BMW China regarding Beijing Xingdebao's current situation, solutions, consumer damages, and compensation measures. However, BMW China remained silent on the matter, only responding through a public relations company on October 27 that it was "currently not convenient to respond.""An informed source revealed that some Xingdebao employees have resolved their wage issues through collective arbitration. Regarding user losses, the Chaoyang District Market Supervision and Administration Bureau is negotiating with BMW to see if customer rights and interests can be transferred to other 4S stores, and a solution may soon be available.

Beidou Finance noted that employees recently live-streamed revelations, stating that Xiamen Zhongbao, the largest BMW 4S store in Xiamen, had announced a work stoppage due to poor management and was now deserted. Similar to Beijing Xingdebao, the closed Xiamen Zhongbao also had lingering issues such as unpaid wages and unfulfilled customer rights, making rights protection difficult.

Various indications suggest that behind BMW's vision of full-domain product coverage, whether users are willing to pay for it has become the primary factor determining its success in market competition. With continuous turmoil within the year, BMW faces survival difficulties that may be more challenging than imagined.