At the end of last year, BMW USA hiked prices for nearly all its cars for the 2023MY, with the 330e xDrive becoming 3.7% more expensive. Australia followed suit last month and some cars such as the M8 Coupe and M8 Gran Coupe in Competition specification were hit with a massive 11,500 AUD premium. It’s now China’s turn to adjust pricing to reflect higher manufacturing costs due to raw materials and logistics.
No fewer than 17 models are now more expensive than they were last year, including the 5 Series, X5, and the smaller X3 luxury crossover. Depending on trim level, the latter is anywhere between 7,000 to 17,000 yuan (about $1,040 to $2,528) costlier, according to Shanghai Securities News cited by Automotive News Europe. An official response has been provided by BMW’s local division:
“BMW regularly reviews and evaluates its product pricing to flexibly respond to changes in raw materials and vehicle manufacturing costs.”
It goes without saying China is a huge market for BMW. In 2022, the premium brand managed to deliver 791,985 units in the region, or 6.4% less than the year before. For the sake of comparison, 877,369 cars were shipped to European customers last year while the United States generated 361,892 sales. At home in Germany, 252,087 people purchased BMWs in 2022.
China is also an important manufacturing hub and the only country where BMW makes the i3 Sedan and iX3 crossover. In addition, a stretched X5 Li has been in production since 2022 with the same wheelbase as the fullsize X7. The next-generation MINI Cooper SE will also be assembled in the People’s Republic as part of a tie-up between the BMW Group and Great Wall Motors. A production version of the Aceman concept is expected to be built there as well.
About a year ago, BMW increased its share in the joint venture with Brilliance to 75% and extended the partnership until 2040. BBA’s Shenyang factory is the largest BMW factory in the world and assembles some of the lesser-known models like the 1 Series Sedan, X1 Li, and the long-wheelbase 3 Series and 5 Series sedans.
Source: Automotive News Europe