BEVs to make up half of all BMW X2 sales
The two new iX2 variants – the electric versions of the X2 small coupe-SUV – are a key part of the German brand’s battery electric vehicle (BEV) growth strategy that has six models primed to take advantage of generous fringe benefits tax incentives.
Along with anticipated organic growth for a car that now distinguishes itself more design-wise from its closely related X1/iX1 cousin, it has BMW bracing for another surge in BEV demand.
BMW is forecasting the iX2 could make up about half of all X2 sales, which will be split across four model variants – two electric, two petrol.
Key to the iX2’s consumer appeal is the sharpest relative pricing on the slickly styled compact SUV anywhere in the world.
Selling from $82,900 plus on-road costs for the more affordable iX2 eDrive20 and another $2800 for the all-wheel drive dual-motor xDrive30, the new arrivals required intense negotiations with head office in Munich to leverage Australia's BEV incentives.
BMW Australia head of product and market planning Brendan Michel the iX2 pricing as a “mega deal” following these unprecedented negotiations.
“They’re cracking prices within our own internal hierarchy,” he said.
Analysing the pricing on the closely related X1/iX1 – the with which the X2s and iX2 share architecture and mechanicals – further highlights the efforts to keep the iX2 in play for the Fringe Benefits Tax (FBT) incentives.
The most expensive iX1 – the dual-motor xDrive30 – sells from $84,900 plus on-roads, making it $14,500 more expensive than the four-cylinder petrol-fed X1 xDrive20i.
Comparing the equivalent models in the X2/iX2 line-up – the identically-powered X2 xDrive20i versus the iX2 xDrive30 – yields a more modest $9800 price gap.
And the step between the single-motor eDrive20 and dual-motor xDrive30 in the iX1 range is $6000 versus just $2800 in the iX2 range.
The man in charge of product and pricing for BMW X cars, Daniel Silverwood, used the national media launch of the X2 to outline the sharpness of the local positioning.
He said the $89,332 Luxury Car Tax (LCT) threshold that sets the upper ceiling for the FBT incentive “enabled us to have a very strong price point”.
“The equivalent in a market like Germany is over €60,000, which would be ballpark about $106,000 (in Australia),” he said, adding that was “the price point we could have been at if it weren’t for the efforts of remaining under that price point”.
One challenge for BMW could be convincing buyers to keep the $2800 in their bank account by buying the iX2 eDrive20 because that modest’s price premium not only brings an additional electric motor – boosting performance and bringing all-wheel drive – but also more equipment.
The eDrive20 is the only X2 that misses out on heated front seats, electrically adjustable front seats and Driving Assistant Professional with blind-spot warning, adaptive cruise control and lane-keep assist.
But Mr Michel thinks the two will appeal to different buyers.
“I think you’ll have two types of customers,” he said. “One that wants a little bit more range, they’ll probably go the entry-level. Those wanting a little bit more pep, a bit more performance, they’ll go towards the xDrive30.”
Across the broader X2 range – encompassing petrol and electric – there is a generous level of equipment.
The entry-level petrol-powered X2 xDrive20i ($75,900 + ORC) comes with 19-inch alloys, dual-zone ventilation, smart key entry, adaptive dampers, powered tailgate, head-up display, Veganza fake leather, 360-degree camera, wireless phone charging and a 10.3-inch digital instrument cluster and 10.7-inch central touchscreen.
It also has an M Sport styling kit and a kidney grille that glows as part of the sleeker styling for the X2 range.
The iX2 eDrive20 ($82,900 + ORC) and iX2 xDrive30 ($85,700 + ORC) share that same level of gear and also get tyre pressure monitors, two charging cables (one to plug into a regular domestic socket and the other a Type 2 to Type 2 cable) and a 12-month subscription to the Chargefox public charging network.
Topping the X2 range is the $92,900 + ORC M35i, which adds 20-inch alloy wheels, real leather trim, panoramic sunroof, front seat massagers, better brakes and a 12-speaker Harman Kardon sound system.
While BMW is forecasting the X1 to remain top seller in the brand’s sprawling line-up it expects the X2 to grow sales without cannibalisation.
“With this new generation model its design, its size, its functionality – it’s even got more boot space than the X1 – I think it’ll be a conquest car for us as well,” said Mr Michel.
2024 BMW X1/X2 pricing:
X1 sDrive 18i $60,400
X1 xDrive 20i $70,400
X1 xDrive M35i $90,900
iX1 eDrive20 $78,900
iX1 xDrive30 $84,900
iX1 40 M Sport $84,900
X2 xDrive20i $75,900
X2 M35i $92,900
iX2 eDrive20 $82,900
iX2 xDrive30 $85,700
* Pricing excludes on-road costs
