BMW to stop raising car prices after years of increases

BMW expects to stop raising prices on its premium cars in 2023 after years of passing on higher costs to customers, which has led to an average 40 per cent increase since 2020.

The German company said on Wednesday it expected to keep prices stable this year while the number of cars delivered to customers would increase slightly.

“Full order books in Europe and outside [has translated] into good price realisation,” said BMW’s head of sales Pieter Nota. “Of course, that has contributed very much to solid profitability of the company.”

Car prices have risen because of higher commodity costs, semiconductor shortages, a focus on selling top-range vehicles and the introduction of more expensive electric cars, according to Auto Trader, an online vendor.

The median price of a new BMW in the UK rose from £36,638 in March 2020 to £51,350 this month, representing a 40 per cent jump, said Auto Trader.

Volkswagen car prices jumped 19 per cent and those of Mercedes-Benz by 39 per cent over the same period.

Ian Plummer, a director at Auto Trader, said the average price of a new car had risen by 40 per cent over the past five years across all brands.

 

The company said last week that it would pay out a bumper €5.5bn to shareholders after a profits boost from an increased stake in its Chinese joint venture as well as higher prices for its expensive premium cars.