BMW has given its new-generation iX3 electric SUV a razor-sharp price, but its local boss says not to expect all of its future models to be priced as aggressively.
“It is not an indication of any trend of the future. Don’t read too much into it,” BMW Group Australia CEO Vikram Pawah told CarExpert.
He also denied this was in response to dramatic price cuts by luxury brands such as Lexus and Cadillac.
“It was priced independently… If you look at the competition, then you have to look at the spec level as well. It’s not just the price. It’s the content as well,” he said.
Customer deliveries of the iX3 50 xDrive commenced late in June, with the dual-motor all-wheel drive mid-size SUV priced at $109,900 before on-road costs – undercutting all-wheel drive versions of the Audi Q6 e-tron and Porsche Macan, and narrowly sliding in under the electric Mercedes-Benz GLC400 ($112,200 plus on-roads, or $110,000 plus ORCs in Launch Edition trim).
In June, BMW announced the entry-level iX3 40 – due here in the fourth quarter (October to December) of 2026 – with a price tag of $89,900 plus on-roads.
That brings the second-generation iX3 under the current Luxury Car Tax (LCT) threshold of $91,661 for fuel-efficient vehicles, making it eligible for Fringe Benefits Tax (FBT) exemptions for customers who take up a novated lease and undercutting the entry-level single-motor rear-wheel drive Audi Q6 e-tron ($99,818 plus on-roads).
It also makes it more affordable than the base version of the previous-generation iX3, which was priced from $91,000 plus on-roads.
That’s despite the new-generation model moving to a new platform with new batteries offering more range, and packing the German brand’s latest technology.
Shortly after announcing iX3 pricing in March, BMW Australia confirmed it was slashing the price of the small iX1 xDrive 30 by $8900 to $77,900 plus on-roads, and the iX2 xDrive30 by $7700 to $79,900 plus ORCs – ostensibly to avoid buyers overlooking the older small SUVs in favour of a similarly priced, new-generation model.
BMW says the sharper iX3 pricing wasn’t in response to any moves by rivals.
“I don’t think we price anything based on others, we price it based on the product and the customer that we are targeting,” said Mr Pawah.
“When we talk about this ‘power of choice’ strategy… you have to be in the certain ballpark for people to choose the technology they want.
“If you have unevenly priced things in the same category, then certain drivetrains might move faster than the others so customers don’t get to choose.
“And that’s why you’ll see we’re always in that ballpark.
“We also look internally in our own price hierarchy with all our models and make sure that the cars are all positioned appropriately against each other,” added BMW Australia corporate communications general manager Leanne Blankenberg.
BMW has yet to announce pricing of the related i3 electric sedan, though it’ll almost certainly undercut similarly specified members of the iX3 lineup. It’s due here early in 2027.
Lexus recently slashed prices of its RZ electric SUV by over 30 per cent, despite giving it substantial updates including more power and range, and cited the changing direction of the market.
The new RZ500e Luxury is priced from $84,500 before on-road costs, down $36,559 on the RZ450e Luxury it replaces, while the RZ500e Sports Luxury is priced at $91,000 plus on-roads – a markdown of $42,059.
Both variants slot in under the relevant LCT threshold.
Likewise, Cadillac cut the price of its larger Lyriq to $90,000 before on-road costs, also citing a changing market. It had previously been priced at $122,000 plus on-roads, though it has been the subject of a few special offers since then before its recent price adjustment.
BMW puts all its rivals in the shade when it comes to range, with a whopping 805km of WLTP range in 50 xDrive guise – when equipped with 20-inch alloy wheels – courtesy of a 108.7kWh (net) nickel manganese cobalt (NMC) battery.
The iX3 40 uses a smaller 82.6kWh battery, though still offers up to 635km of WLTP range.
In addition to riding on the automaker’s new Neue Klasse dedicated EV platform, the iX3 features completely different styling inside and out from its predecessor and the current-generation X3.
Inside, it comes with the huge 43.3-inch Panoramic Vision display that runs from A-pillar to A-pillar. This is in addition to a head-up display and a 17.9-inch touchscreen infotainment system running BMW Operating System X.
BMW Australia wouldn’t be drawn on sales targets for the new-generation iX3.