BMW has announced it’s going to stop raising prices on its premium vehicles after 2023, marking what could be a top in auto prices as global supply continues to swell and the average consumer is tapped with debt.
Price hikes as a result of increased demand and shortage of semiconductors have led to a stunning average of 40% annual price increases since 2020, according to a new report by Financial Times.
The automaker said deliveries for the year would “increase slightly”. It noted that there was a “slight decrease in European orders at the start of 2023”, which the company blamed on rising interest rates. About 40% of sales are consummated with the help of the company’s financial services arm.
BMW’s head of sales Pieter Nota told FT: “Full order books in Europe and outside [has translated] into good price realisation. Of course, that has contributed very much to solid profitability of the company.”
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