Multiple 4S Stores Closing, BMW's Big Plunge at the Start of the Year: 7 Series Drops Over 400,000, Sales Plummet Back to 7 Years Ago

Sharp discounts and dealer pain

It has been reported that several authorized dealerships — China’s so‑called 4S stores (sales, spare parts, service and survey) — are shutting or shrinking operations as BMW (宝马) dealers cut prices aggressively to clear inventory. The most attention‑grabbing claim: discounts on the flagship 7 Series reportedly exceed RMB 400,000 on some trims. That kind of markdown on a luxury sedan is eye‑popping, and it has pushed BMW’s China sales down to levels not seen for roughly seven years, according to local reports.

Why 4S closures matter

For Western readers: 4S stores are the backbone of auto retail in China, combining sales and after‑sales service under one roof and historically ensuring brand control. Their closures signal more than a short promotional cycle — they reflect dealer cash‑flow stress and a reshaping of distribution. Dealers facing prolonged low turnover often resort to heavy discounts to hit targets, which can erode brand pricing power and margin, especially for higher‑end models like the 7 Series.

Market and geopolitical context

The squeeze comes amid structural shifts in China’s auto market. Domestic electric vehicle makers such as BYD (比亚迪) and boutique EV brands have accelerated market share gains, altering consumer preferences away from traditional combustion‑engine luxury sedans. It has been reported that weakening macro demand and inventory glut are compounding the problem. Geopolitically, broader trade and supply‑chain tensions have encouraged Chinese policy to favor local supply and new‑energy adoption, indirectly raising the bar for foreign incumbents to maintain premium pricing.

What’s next?

Can BMW stabilize margins and dealer networks without further price erosion? The manufacturer may need to rethink incentives, product mix (more EVs?) and its channel strategy in China. For now, deep discounts and 4S closures are a clear signal that competition and changing demand are transforming one of the world’s largest luxury auto markets — fast.