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“Because it’s a new model and the price has dropped.”

Xiao He, a post-95s owner who picked up his car in June, explained why he bought the controversial new BMW 5 Series. In 2021, he owned his first BMW: the seventh-generation 5 Series. This year, after the new BMW 5 Series was released, its more youthful appearance quickly attracted Xiao He, and when the price dropped to the critical value of 400,000, he decisively bought it.

Consistent with Xiao He’s decision, data released by BMW shows that people born in the 1990s have become the main consumer force in the new 5 Series.

Yu Qiang, who has been selling BMW cars for five years, said, "Not only the 5 Series, but in fact the customers of all BMW models are getting younger." Whenever he talks with customers about why they choose BMW instead of new energy vehicles such as Tesla, he often gets this answer: "My family has been driving BMWs for decades, and they are all old users who trust BMW."

As the audience continues to get younger, BMW's brand power seems to have been extended, but crises also follow.

The consumption power of young people is limited, and BMW's best-selling cars are gradually shifting to entry-level models, with the average transaction price falling. The i3, which created sales with a landing price below 200,000 yuan, can no longer restore the premium level of luxury brands, and BMW's brand image has begun to undergo subtle changes.

Stimulated by low prices, the proportion of young users has increased

A BMW dealer told 36Kr,Lower prices and more flexible payment methods are the direct reasons for young customers to pay."There have always been young people who like the BMW 5 Series, but the price cut has allowed more people to afford it."

In the three months after its launch, the new 5 Series had almost no discounts, and the suggested retail price was the landing price, starting at 439,900 yuan. Under the pressure of three consecutive months of sales of less than 5,000 units, the 5 Series began to reduce prices, with the lowest landing price falling to less than 400,000 yuan. After the price reduction, sales rebounded, and in June, the sales of the BMW 5 Series exceeded 10,000.

Several BMW terminal sales told 36Kr that BMW Financial is a favorable attraction for developing the young market. Inspired by the new forces, BMW has also launched services such as 0 down payment, 0 interest, financial leasing, and official old car replacement subsidies. Price reduction discounts and financial policies have lowered the threshold for young people to drive BMW.

But price is only a prerequisite for considering BMW, the product is the core reason for placing an order. According to official statistics, appearance is the main reason why post-90s car owners choose the BMW 5 Series, and this proportion even exceeds that of the previous generation of models.

The BMW 5 Series, which has a lower price and a design that is more popular among young people, is indeed seeing an increase in the total number of young customers.But behind the sudden increase in the younger trend is actually a tightening of sales volume.

BMW 5 Series

A senior BMW salesperson told 36Kr that regardless of the generation of the car, the appearance is the main reason for car owners to buy it. "Although the design is a matter of opinion, the main reason for the sluggish sales of the new 5 Series in the first few months after its launch is indeed the new style of appearance design." 36Kr learned thatIn the first month of the new 5 Series' launch, the demand for the old BMW 5 Series has been increasing, both among dealers and used car dealers.

The sales position of the BMW 5 Series in the Chinese market is derived from the fifth-generation model (E60) designed by Chris Bangle. Compared with the previous four generations with pure sports style, the E60 has a business temperament. From 2003 to 2023, the consistent business sports sedan design has won BMW a large number of loyal users in China.

In the past two years, the BMW 5 Series sold 171,100 and 136,700 units in China respectively, surpassing the Mercedes-Benz E-Class and Audi A6 series to become the best-selling luxury sedan in the Chinese market. The reason behind the popularity of the BMW 5 Series is that it meets the needs of both business and personal needs.

But the latest generation of BMW 5 Series is different, it adopts the design style of the 2023 BMW 7 Series. The front grille with thicker lines and larger area has put BMW into a design dilemma again: BMW, which wants to transform, is gradually drifting away from the aesthetics of old users.

2023 BMW 7 Series

Consumers have already shown their attitude towards the new generation of BMW design through their orders - even though the price has dropped to less than 800,000 yuan, the sales of the 7 Series in China have continued to decline. The sales of the 5 Series, which is similar to the 7 Series in design, have almost halved compared to the previous generation. BMW, which has won the favor of young people, is facing the risk of losing old customers.

However, in the field of high-end sedans, BMW's competitors are still only similar luxury brands, and there are not many rivals. If BMW steps out of its comfort zone, there is still a chance.

As family users turn to new forces, what is BMW’s basic base?

A BMW dealer told 36Kr Auto that the impact of new brands does exist.X3 and X5, these two models have the most serious user loss, and a large proportion of SUV users have switched to domestic brands”。

As the first medium-to-large luxury car to be localized, the BMW X5 has achieved outstanding results in the past two years: 93,900 units were sold in 2023, with an average transaction price of 660,000 yuan, and the market share ranked first. However, new energy vehicles are attacking the medium-to-large car market. In the first half of 2024, the sales volume of the BMW X5 fell by 45.14% year-on-year to 46,900 units.

The sales of domestic medium and large SUVs priced lower than X5 are rising rapidly. From January to June 2024, Ideal L9 sold 43,000 units and Wenjie M9 sold 58,000 units. A strategic person from a new energy car company analyzed to 36Kr that the biggest product highlight of new energy medium and large SUVs is space. "Three-row six-seat SUVs with central aisles are more suitable for Chinese families (two children, three generations living together), but international brands still have no similar products."

BMW X5 interior space

As family users turn to domestic brands, who is still buying BMW SUVs?

BMW dealers said frankly that BMW's basic base is retained users, and these users support BMW's sales."Parents who are old BMW users will continue to buy BMWs for their children; those who like the driving experience of BMW will change from 3 Series/X3 to 5 Series/X5, or continue to upgrade."

It is becoming increasingly difficult to acquire new customers. People close to BMW channels told 36Kr that due to the supermarket model, the number of new offline customers at BMW stores in more remote areas is on the decline.

"Among offline customers, users of the fuel 3 Series, i3, and iX3 are particularly prominent. Most of them make online reservations or visit after obtaining large discount information from new media platforms.""Price discount" seems to have gradually replaced "brand" and become an important way to support BMW's customer acquisition.

However, BMW's slogan of withdrawing from the price war is being implemented. In early July, various dealer groups have adjusted their terminal retail prices one after another, and BMW China is also further strengthening the verification of transaction prices. This luxury car brand has obviously realized that it is difficult to maintain users attracted by price cuts in the long run.

It will take at least 2-3 years for new electrified products to be launched. How to continue to mobilize consumer enthusiasm? BMW urgently needs a new answer.