BMW iX3 leads response to Chinese rivals

BMW Australia has dismissed the idea that fast-growing Chinese prestige brands are responsible for cooling sales, insisting that it will not slash prices on key BMW models to chase rivals such as Zeekr.

Vikram Pawah, managing director of BMW Group Australia, said the Bavarian brand has always competed with cheaper “near-premium” alternatives priced below $80,000. While “near-premium” brands are changing from established alternatives such as Volvo and Lexus towards Zeekr and Denza, Pawah claimed BMW’s customers are not downgrading.

The comments came as BMW sales have slipped about 10 per cent in 2026 compared to record highs last year, but the local chief said the arrival of Chinese rivals was not to blame. “It’s not the competition arriving; there has always been competition in that price point where we don’t exist,” BMW Group Australia CEO Vikram Pawah told carsales, arguing weaker consumer confidence was the more significant factor.

The BMW boss also said the brand’s strong long-term investment in vehicle dynamics, car customisation and aftersales support justifies its premium positioning. “It’s easy to sell the first car,” Pawah said. “Let me see how many can sell the second one.”

BMW has delivered 17,771 cars in Australia across the first nine months of 2026, remaining convincingly ahead of Mercedes-Benz (15,832), but the result is down more than a tenth compared to the same time last year.

Meanwhile, emerging Chinese prestige rival Zeekr has surged to 12,120 sales across the same period, with that figure dominated by the headline-grabbing 7X SUV (10,800).

Zeekr, which is the luxury marque of Chinese conglomerate Geely, has reached more than two-thirds of BMW’s local sales volume with just three models.

The German premium giants of BMW, Mercedes-Benz and Audi all rely on sprawling ranges of SUVs, sedans and performance cars to build their total numbers.

Similar in size to BMW’s $89,900 new-generation iX3, the Zeekr 7X is priced from $57,900.

Pawah rejected pushing BMW prices down to chase cheaper emerging rivals.

“If you chop and change your strategies, you ruin customers’ residual values – that’s not premium,” he said.

BMW uses tools other than list price to win deals, including showroom discounting, financing deals and guaranteed future value.

But the brand objects to reducing list prices in response to what it perceives as a short-term economic tightening.

Pawah pointed to an order bank “beyond 3000 units” for the supply-constrained iX3, for which deliveries have only recently commenced, equating to roughly 13 per cent of BMW’s overall current annualised Australian sales rate.

The BMW chief also pointed to $400 million in dealership upgrades as part of the value proposition beyond price, alongside strong aftersales support, superior ride and handling dynamics and greater car individualisation opportunities.

Australia is an unusual market for the European giants. Unlike in the United States or European Union, there are essentially no tariffs or duties applied to Chinese cars.

Both Zeekr and Denza will broaden their slim Australian ranges in 2027 with new passenger car and SUV models that may increase the heat on legacy luxury brands.

But BMW is betting that its own launch program, which includes Neue Klasse electric models like the iX3 and X3, as well as the redesigned X5, will restore momentum without sacrificing the high ground on pricing.

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