BMW Raising Prices on Some Models Now Due to Tariffs
BMW has recently announced that it will be raising the prices on most of its models as well as electric vehicle (EV) production. Most of these changes are due to the US’s new tariff regulations on countries outside the USA.
BMW confirmed it would raise prices on the 2 Series Coupe and the high-performance M2, by about 4%. The price increase translates to an additional $1,600 to $2,750 depending on the model. The M2 sees an even higher increase to $69,375 to absorb a 25% to 27.5% tariff in the USA.
Both the 2 Series and M2 are built at the San Luis Potosí plant in Mexico which BMW rely heavily on. What makes this decision surprising is that it comes during a period of strong EV momentum for BMW. In Q1 2025, BMW’s EV sales in the U.S. surged by 26% year-over-year. The i4, in particular, stood out, with a 57% jump in sales compared to the same quarter in 2024.
BMW Raising Prices on Some Models Now While Postponing EV Production
Despite the price changes, BMW has opted to “postpone” EV production. Experts like Sam Fiorani from Auto Forecast Solutions suggest that due to the saturated EV market, adding expensive new EVs doesn’t make any sense. Not to mention as all BMW EVs are built in Germany, the company will experience high import tariffs on them.
Despite the current pause, BMW isn’t abandoning its EV ambitions. The company plans to begin producing its next-generation Neue Klasse EVs in Mexico later this year and in the U.S. by 2026 at its Spartanburg, South Carolina plant. Let’s just hope these new models won’t experience the same over-inflated prices as other EVs.
