Los Rojiblancos are chasing Barcelona at the top of LaLiga and they had racked up four points from three UCL games prior to Bayern's visit to Madrid
A mistake from Robin Le Normand gifted the Bavarians a breakthrough at the sttart of tthe second period, as Lennart Karl lashed past Jan Oblak, before Konrad Laimer wrapped up the result late on.
Diego Simeone refused to dwell on the result at full-time, ahead of an incoming battle with Barcelona this weekend, and he admitted there is a gap between his team and Europe's big hitters.
"We competed well until the first goal. We know their strengths, but also our own, and our weaknesses. Up until the first goal, we competed very well.
"We know when we play against top teams, this can happen. Liverpool and Bayern are better than us; we have to close that gap. We have to reach 120% because 100 is not enough."