BMW has raised prices on major models, including the midsize-large 5 Series sedan lineup, citing deteriorating profitability due to the recent, continued decline in the value of the won.
According to the imported car industry on the 5th, BMW Korea announced on its website that it will raise prices on all 5 Series models except the plug-in hybrid all-wheel-drive 550e xDrive.
The model with the highest increase is the gasoline 520i, up 1.86% (1.3 million won) from 69.8 million won to 71.1 million won. The 520i has sold 6,039 units through May this year, making it BMW's best-selling car and ranking second among imported cars after the Tesla Model Y.
Other models also saw price hikes of around 1 million won. The all-electric i5 eDrive40 rose by 1.1 million won (1.15%) from 95.7 million won to 96.8 million won, and the i5 xDrive40 rose by 1.1 million won (1.06%) from 103.8 million won to 104.9 million won.
The diesel 523d and 523d xDrive were each raised by 1.4 million won, starting at 78.2 million won and 81.2 million won, respectively. The model with the smallest increase is the plug-in hybrid 530e, up 900,000 won (1.01%) from 89.5 million won to 90.4 million won.
Among sport utility vehicles (SUVs), prices for the large all-electric iX lineup were all raised. The iX xDrive45 rose by 1.3 million won (1.04%) from 124.8 million won to 126.1 million won, and the iX xDrive60 and the high-performance iX M70 xDrive rose by 1.5 million won (0.98%) and 1.8 million won (1.01%), respectively, bringing starting prices to 155.3 million won and 179.5 million won.
This round of price increases began last month under the leadership of the German headquarters. Until it adjusts official prices, BMW Group absorbs all losses from exchange rate fluctuations at headquarters.
Currently, BMW Korea imports sedan models from Europe and SUV models from Europe and the United States. All vehicle payments are settled in won. When the won weakens, the German headquarters' profitability deteriorates immediately. Recently, the exchange rate against the dollar has remained in the 1,500-won range and continues to rise.
BMW Korea also plans to raise prices on other lineup vehicles in stages. Industry watchers say broad-based SUV price hikes are likely to be implemented starting next month.
A BMW Korea official said, "Except for the 3, 7 and X5, we expect average price increases of under 1%," adding, "The timing of the increases is undecided."