BMW XM Slashes Price by $25,000 but Still Struggles to Break Through

BMW's most powerful production model, the XM, has received a significant official price cut. The 2026 XM Label now starts at $159,600—$25,400 less than before—in an effort to boost sales. The move comes after the XM sold only 1,878 units in the U.S. in 2025, even trailing behind the Z4 roadster. Although its new starting price is close to that of the discontinued base XM (originally priced from $159,000), the XM still costs nearly $29,000 more than the X5 M Competition, and its power advantage is diminished by its heavier weight. As BMW’s first dedicated M model since the M1, the XM has faced criticism for abandoning the mid-engine supercar concept in favor of a large plug-in hybrid SUV. Now, with tepid market reception and increasing product overlap—such as the upcoming X7 M and the successor to the Alpina XB7—even this price reduction may not be enough to secure the XM’s future.