BMW raises prices after China’s brutal discount war fails to boost deliveries
- BMW has stopped offering discounts, resulting in price increases ranging from 30,000 yuan to 50,000 yuan, as it seeks to improve margins in a cutthroat market
All BMW car dealers have stopped offering discounts and incentives aimed at boosting sales in the world’s largest automotive market.
Two sales managers with BMW dealers in Shanghai told the Post that the price increases, ranging from 30,000 yuan to 50,000 yuan, reflect BMW’s efforts to improve profitability in a highly competitive market.
BMW is no longer pursuing a strategy of boosting sales volumes since massive price cuts failed to effectively bolster deliveries due to mainland consumers’ lack of interest in premium models, they said.
BMW China did not respond to queries by the Post on Thursday.
Technically, the German carmaker cannot directly instruct its dealers across China to adjust retail prices, but it can pass its pricing strategy onto the outlets by offering them subsidies or raising sales commissions.
