Major automakers, including BMW and Porsche, are increasing prices on select models beginning in January 2026, citing ongoing inflationary pressures and escalating tariffs. The moves mark the latest in a series of price hikes impacting the automotive industry, particularly for premium brands. These increases reflect broader economic trends where trade barriers and supply chain costs continue to drive up consumer expenses.
BMW Announces Price Adjustments
BMW will raise prices on several models starting January 1, 2026, with increases ranging from $400 to $1,500 depending on the vehicle.
- Entry-level models (2 Series Gran Coupe, X1, X2, X3) will see a $400 increase.
- The high-performance M5 (sedan and Touring wagon) will rise by $1,400.
- The X6 M Competition will experience the largest increase, at $1,500.
Notably, BMW’s current electric vehicle lineup (i4, i5, iX, i7), along with the Alpina XB7, 7 Series, XM, and Z4, will remain unchanged in price for 2026. This is the second price increase for BMW’s 2026 models in recent months; in July, prices were already lifted by 1.9 percent. The cumulative effect on the M5 Touring, for example, now exceeds $3,800 over last year, bringing its price to over $131,000.
Porsche Faces Higher Tariffs
Porsche is also responding to market conditions by raising prices on “most, but not all” of its vehicles starting January 2, 2026. Increases are expected to fall between 1.2 and 2.9 percent, marking the third price hike in recent months. According to Porsche CFO Jochen Breckner, tariffs imposed by the United States have cost the company approximately $813 million in 2025 alone. The 15-percent tariff on vehicles built in the European Union, which took effect in August 2025, is a primary driver of these adjustments.
Broader Industry Trend
BMW and Porsche are not isolated cases. Other luxury brands, including Lexus and Volvo, have already implemented price increases earlier in 2026 due to similar pressures. The continuation of tariffs and inflationary trends suggests further price adjustments across the industry are likely as the new year approaches. These increases underscore the growing financial burden on consumers purchasing high-end vehicles, and highlight the impact of global trade policies on the automotive market.
The consistent rise in luxury car prices reflects a sustained trend of escalating costs driven by trade barriers and economic factors. Automakers are passing these expenses onto consumers, making premium vehicles increasingly less accessible.
