BMW i3 Priced Well Below Expectations in Germany; Sales Volume Predicted to be High

JUL 23 2013 BY ERIC LOVEDAY 8

Yesterday, BMW poured out pricing details on the upcoming i3.  Those details included its US base price, lease options in the UK and even the obscure range-extender price announcement in the Netherlands.

i3 Inner Workings

i3 Inner Workings

Of course, among the other details that BMW let fly was a price announcement for Germany.

This announcement may have been the most shocking of all.

BMW set the i3’s base MSRP at 34,950 euros ($46,036 US) in Germany.  The official price comes in 2,000 to 5,000 euros ($2,634 to $6,586 US) below early predictions.

Frankfurt-based Commerzbank analyst, Sascha Gommel, had this to say of the i3 unexpectedly low price:

“The price is very competitive.  It seems realistic that BMW could grab a decent share of the electric-car market.”

The i3 will launch first in Germany this November.  The lower-than-expected price means that demand in BMW’ home market could be significantly higher than first anticipated.  This, in turn, could be why the US launch of the BMW is was delayed by a few months.

The move by BMW to price the i3 below predictions in Germany is seen as a way to perhaps prevent rivals Audi and Mercedes-Benz from even trying to compete in the electric vehicle segment.

The i3’s target audience is urban dwellers in the world’s largest automotive markets.  Furthermore, BMW says the i3 will be a second or third vehicle that urban families add to their existing “fleet” of one or two.

Oddly, BMW doesn’t necessarily see the i3 as an only vehicle owned by a family.  This may limit its overall appeal in some regions of the world where owning only 1 vehicle is the norm.

However, the general consensus in the German media is that the i3 will quickly become the nation’s top-selling electric.  That’s precisely our belief, too.

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8 Comments on "BMW i3 Priced Well Below Expectations in Germany; Sales Volume Predicted to be High"

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Good article. I believe that this is important pricing aspect too. The i3 will be sold at a 20% premium over the LEAF in Germany (34,950€ vs 29.690€). In the US, the price differential is 42%. Could this be reflective of a different standard feature mix?

(German prices include 19% VAT; US prices are net of tax)

The price is above the media expectations of 32000€. Sales will be sucking, because it’s only sold at about 40 dealers (of 700 total BMW dealers in Germany) and quick charging infrastructure doesn’t exist.

I agree. I just don’t tons of these selling.

I think a lot of German PV system owners have been waiting for a German EV to buy.

No indication whether VAT included into MSRP.

It always is, Darius. No way around it in Europe. And another reason to announce prices for each country separately. VAT varies from country to country.

“Owning only one vehicle is the norm”.

What about the growing crowd of poor people and city only dwellers that more and more have zero vehicles as a norm, either by lack of fund and too high taxes or by choice.

“Furthermore, BMW says the i3 will be a second or third vehicle that urban families add to their existing “fleet” of one or two.”
Soooo ridiculous, most of urban families in the world even can’t afford one car. Furthermore, no one wants more cars in urban areas where the car (no matter if electric or conventional) is just the wrong means of transportation (e.g. have a look at Beijing’s streets)!