New car prices aren’t expected to drop anytime soon. Inflation and ongoing tariffs continue to push vehicle costs higher, particularly for certain luxury brands—and that trend is likely to continue into 2026. Some automakers have already announced price increases for the coming year.
BMW is among them. Beginning January 1, 2026, the automaker plans to raise prices on many models, according to a bulletin obtained by CarsDirect. Depending on the vehicle, prices will increase anywhere from $400 to $1,500.
Entry-level models such as the 2 Series Gran Coupe, X1, X2, and X3 SUVs will see the smallest increase, at $400 each. At the higher end, the new M5—both the sedan and Touring wagon—will rise by $1,400, while the X6 M Competition will receive the largest increase at $1,500.
Not all BMW models will be affected. The brand’s current electric vehicles—the i4, i5, iX, and i7—will carry over unchanged. The Alpina XB7, 7 Series, XM, and Z4 will also enter 2026 without additional price hikes, as will the newly introduced M2 CS.
Here’s a breakdown of the price increases for the affected models:
- BMW X1 — $400 Increase
- BMW X2 — $400 Increase
- BMW X3 — $400 Increase
- BMW M5 — $1,400 Increase
- BMW X6 M Competition — $1,500 Increase
This marks the second price increase for BMW’s 2026 models in just the past few months. In July, the company raised prices on its then-new 2026 lineup by 1.9 percent, which translated to roughly a 2.4 percent increase for the M5 Touring. With the latest hike, the M5 Touring now costs $3,800 more than last year—pushing its price to just over $131,000.
We’ve reached out to BMW for an official comment on the increases and will update the story if we hear back.
Porsche, however, is being hit even harder by tariffs, as it builds fewer vehicles in the United States than BMW. The German automaker has confirmed that it will raise prices on most of its models beginning January 2, 2026.
A Porsche spokesperson told Automotive News that the decision is “based on current market conditions” and will affect “most, but not all,” of the brand’s vehicles.
Depending on the model, Porsche prices will increase between 1.2 and 2.9 percent. Porsche hasn’t announced specific price increases by model. Like BMW, though, this marks the third price hike in recent months. Porsche previously raised prices by 2.3 to 3.6 percent in July.
According to Porsche CFO Jochen Breckner, President Trump’s tariffs have cost the company approximately $813 million in 2025. A 15-percent tariff on vehicles built in the European Union went into effect on August 1, 2025.
BMW and Porsche aren’t alone. Other automakers, including Lexus and Volvo, have also raised prices earlier in 2026 in response to tariffs. How many more will follow remains unclear—but it wouldn’t be surprising to see additional increases as the new year approaches.
