(Yicai) June 6 -- Buyers are enjoying steep discounts in China on foreign luxury autos such as those made by Cadillac, BMW, and Audi, as these carmakers fight back against fast-growing domestic brands such as BYD.

The BMW i3, a premium small electric vehicle, is on sale for CNY175,000 (USD24,000) at a BMW dealership in Beijing, according to a report published by China News Service yesterday. That is 51 percent below its original price, though buyers need to apply for car financing to take advantage of the steep discount.

The prices of other models such as the all-electric luxury sedan BMW i5 have also been cut by more than CNY100,000, while the savings on fuel-powered vehicles are relatively low, the report said.

BMW’s local business said that although there are suggested retail prices, the actual prices set by dealers are determined by market conditions.

In the northern Chinese city of Harbin, an advertising poster shows that one Cadillac dealer has launched a “buy one, get one free” campaign through which customers who buy a XT5 or XT6 sport utility vehicle will receive an entry-level CT4 sedan for free. By spending CNY350,000 to CNY550,000 (USD48,300 to USD75,900) on an SUV, buyers can receive a USD20,000 gift, though they also need to take out car financing.

The dealer’s BOGOF campaign is not supported by the manufacturer, Securities News reported, citing an insider at SAIC General Motors. SAIC-GM is a joint venture of General Motors of the US and Shanghai-based SAIC that is responsible for making and distributing several GM brands in China, including Cadillac.

Prices of Mercedes-Benz and Audi EVs are 30 percent to 40 percent lower. So an Audi Q4 SUV that used to cost more than CNY310,000 apiece, is now priced at less than CNY200,000. Mercedes-Benz EQE SUVs cost in excess of CNY530,000 previously, but now go for about CNY370,000.

As sales at domestic automakers BYD and Aito climb, their foreign competitors confront obstacles, particularly in the local EV segment, according to analysts.

Sales of Chinese-branded cars rose 11 percent to 880,000 units in April from a year ago, accounting for 57.4 percent of the total market, up from 48.4 percent, according to data from the China Passenger Car Association. Sales of luxury cars, mostly foreign marques, fell 12 percent to 200,000 and a market share of 13.2 percent, down from 14.1 percent.

Editor: Emmi Laine