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"Automotive Industry concern" learned from the BMW official website that since February 1, the prices of many models of the BMW brand have been raised, including the BMW 2 Series, BMW i3, BMW i4, BMW 5 Series, BMW 6 Series GT, BMW 8 Series, BMW X1, BMW X3, BMW iX3, BMW X4, BMW X5 and several M models, involving almost all the leading models on sale, with the highest increase of 20,000 yuan.

Judging from the price adjustment of the BMW brand, the increase in the BMW 5-series model is between 2600 yuan and 19600 yuan, of which the BMW 5-series long wheelbase version provides a total of 10 models, with an adjusted price range of 436500-562500 yuan, an increase of 2600 yuan-19600 yuan. the imported BMW 5-series standard wheelbase version provides a total of 4 models, with an increase of 4000-10000 yuan in the adjusted price range of 433900-619900 yuan. The price of the X3 model ranges from 2700 yuan to 7100 yuan; the increase of the domestic long shaft X5 ranges from 7000 yuan to 17000 yuan; the price of the whole X1 series increases 4000 yuan; among the pure electric products, the price of i3 eDrive 35L increases 4000 yuan, iX3 5100 yuan, and i4 eDrive 40 20000 yuan; in addition, BMW also increases prices for BMW 2-Series, BMW 6-Series GT, BMW X4, BMW X3 MPA, BMW X4 MPA, BMW X3M, BMW X4M, BMW M5, BMW M8 and other models.

As for the reasons for the price increase of some BMW models, BMW said that the price increase of some models is mainly due to global inflation, rising raw material and logistics costs and supply shortages. According to BMW dealers, the price of the BMW brand will rise in addition to the Chinese market, and sales guidance prices will also be raised in all countries and regions around the world. Since January 2023, there has also been a big price adjustment for some BMW models in the US market, with increases ranging from 1.2 per cent to 3.7 per cent, with the price of the new X1 xDrive 28i rising by $39100 (about 3392 yuan) and the new BMW 760i xDrive model by $116400, an increase of $2800 (about 18996 yuan). Foreign media reported that the BMW European market may adjust the official suggested retail price in the first quarter of 2023.

In fact, after entering 2023, Tesla China was the first to announce a price cut, and the drop was unprecedented, but even so, it still failed to stop other car companies from raising prices. In addition to the BMW brand, a number of new energy vehicle brands have announced price increases since January, including some pure fuel vehicles, including BYD, Chery New Energy, SAIC Volkswagen, FAW-Volkswagen, Changan Deep Blue, Weima Automobile, Jeep Horse Shepherd and other car companies have announced price increases, mostly due to the decline of subsidies for new energy vehicles and rising prices of raw materials.

However, the price increase of BMW more or less makes people feel that it is going in the opposite direction, after all, Mercedes-Benz and Audi have been cutting prices to promote sales. At present, the domestic car market new energy market is in a situation of rapid rise, and led by Tesla, the price reduction wave has been launched, of which Tesla's two domestic cars in China have dropped by as much as 48000 yuan, AITO's models by as much as 30, 000 yuan, and some models of Xiaopeng Motor by as much as 36000 yuan.

The rapid rise of the new energy market will also directly affect the sales of traditional luxury brands, and the price increase of BMW will also bring more uncertainties to its sales. According to Automotive Industry concern, global sales of the BMW brand declined in 2022. Data show that BMW's global sales in 2022 were 2.3996 million vehicles, a decrease of about 100000 vehicles compared with the same period last year. Among them, the BMW brand in China led Mercedes-Benz and Audi with sales of 792000 vehicles in 2022, but fell 6.4 per cent year-on-year. Among the subdivided models, the sales of the top three models of the BMW brand all declined compared with the same period last year, of which the cumulative sales of the BMW 5-series were 171100, down 0.4% from the same period last year; the BMW 3-series was 163700, down 3.9% from the same period last year; and the BMW X3 was 141000, down 5.8% from the same period last year.

With the exception of BMW, sales of more than one luxury brand declined in 2022, with Mercedes-Benz's sales in China falling 0.9 per cent to 759000 vehicles in 2022, Audi's sales in China down 9.2 per cent to 701000 vehicles, and second-tier luxury brand Lexus sales down 16.06 per cent to 184000 vehicles.

According to the latest estimated sales data released by the Federation of passengers, retail sales of narrow passenger cars in January are expected to be 1.36 million, down 34.6% from the same period last year and 37.3% from the previous month. Among them, retail sales of new energy are expected to be 360000, up 1.8% from the same period last year, down 43.8% from the previous month, and the market penetration is about 26.5%. The Federation stressed that January ushered in the first Spring Festival after a comprehensive adjustment of epidemic prevention and control policies, and the car market entered a recuperation period. As post-holiday consumption is on the right track and local policies to promote consumption continue to play a role, the car market may usher in a window for rapid demand growth. "Automotive Industry concern" believes that whether it is a price increase or a price reduction, the follow-up is bound to affect the sales performance of auto companies in the auto market.

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