BMW, Mercedes, Audi Forced to Offer Huge Discounts in China
In Beijing, BMW is offering as much as 19 percent off certain cars, like the 3-Series. Mercedes meanwhile has slashed the C-Class by as much as 20 percent in the case of the Elegance model, according to Automotive News.
"We're in a cycle of dropping prices," said Scott Laprise, a Beijing-based analyst at CLSA Asia Pacific Markets. According to J.D. Power, demand for luxury cars has increased 29 percent this year, down from the 48 percent in 2010.
"Dealers are worried about sales slowing and are cutting selectively in the luxury segment. They see where the overall market is going. They want to be preventive and keep their sales going," Laprise adds.