Pricing wrap: Euro brands hike their prices

UPDATED 08/02/11:00am: Mercedes-Benz Australia has declined to provide updated manufacturer's recommended list pricing (MRLP) for its model range after recently increasing the prices of multiple key models.

In a statement issued to carsales, a brand spokesperson said: “We unable to share with you a MRLP price list for our complete range and as always, we are unable to discuss our pricing strategy.

“The one price I can confirm to you is a Dealer Delivery Fee of $1200 regardless of the type of Mercedes-Benz Car consumers wish to purchase across all our agents.”

As referenced below, the premium German brand no longer publishes its list prices in industry price guides or via its local website, instead opting to only show state-specific drive-away prices which makes it especially difficult to calculate any MRLP increases.

ORIGINAL ARTICLE PUBLISHED 07/02/2023: A raft of European manufacturers including Audi, BMW, Skoda, Volkswagen and Volvo have upped their asking prices across the bulk of their respective model ranges since the start of 2023, with increases ranging from just a few hundred dollars to more than $11,000.

Most of the increases come amid the increasing cost of materials, production and shipping – and continuing supply shortages across the industry – while others are the result of standard equipment upgrades as part of model year updates.

Every one of these brands has upped their prices at least once over the past 12 months but, running in alphabetical order, Audi’s price increases are among the more modest here, ranging from $200 to 2900 depending on the variant, with the formidable RS 6 and RS 7 performance twins being the main offenders.

The smallest increase belongs to the Audi S5 coupe and Sportback, which now start from $113,200, whereas the larger V8-powered RS heroes now cost $232,200 and $239,200 respectively. (All prices in this article exclude on-road statutory charges.)

Elsewhere in the range, the pint-size Audi A1 has increased in price by between $450-$650 (now from $34,250), while the bigger A3 (now from $ $50,200) was subject to increases of $600-$1000.

The news gets worse for A3 fans with confirmation that local RS 3 order books have been closed indefinitely while the brand tries to catch up on production and reduce the now two-year wait time for deliveries of the newest orders.

Audi A4 prices (now from $78,000) have gone up $600-$1600 depending on the variant, while its slipperier A5 cousin has risen $200-$1200 (now from $78,500).

The bigger Audi A6 (now from $95,900) rose between $1600-$2900 in a move largely mimicked by its sleeker counterpart, the Audi A5, which went up $1700-$2900 to now start from $125,700.

As for Audi SUVs, the Q2’s asking prices were inflated by between $500-$1000 (now from $46,000), the Q5’s by $1000-$1800 – meaning it now starts from $67,900 – and the flagship Q7’s by $1800-$2300 (now from $110,000).

No price or spec changes have been applied to the Audi Q3, A8, Q8 or TT portfolios, or the new e-tron GT.

German compatriot and arch-rival BMW, meanwhile, has hiked the prices of its 1 Series, 2 Series, M3, M4, 5 Series, 8 Series, Z4, X2, X3 and X4 portfolios by as much as $11,500, depending on the individual model and variant.

The smallest increase of $1600 belongs to the X2 sDrive18i, which now starts from $52,600 plus on-road costs, whereas the biggest has been fittingly applied to the range-topping M8 Competition, which now retails from $371,400 in four-door Gran Coupe guise.

As for the rest of the affected models, the entry-level 1 Series now starts from $53,900 courtesy of a $4000 hike for the 118i and eventually tops out at $75,300 for the M135i xDrive (+$2400) hot hatch.

BMW 2 Series prices across both the coupe and Gran Coupe families are up by between $2300-$4400, elevating the entry point to $61,200 for the 218i Gran Coupe (+$4300) and cresting at $94,900 for the hugely capable M240i xDrive coupe (+$3000).

Garden-variety BMW 3 Series variants were spared any increases so far in 2023, but the same can’t be said for the hi-po M3 and M4 which have just been gifted the same multi-media update as their lesser donor vehicles, hence the $5300-$6300 price hikes that now see them start from $158,800 and $163,900 respectively.

Between $3300-$8700 has been added to the next-size-up BMW 5 Series (now from $105,700) with the biggest increase predictably belonging to the savage M5 Competition (now from $269,600).

It’s the same story with the 8 Series, albeit with bigger increases of between $5900-$11,500, meaning the flagship coupe range now starts from $190,800 (+$5900) for the 840i Gran Coupe and tops out at $374,400 (+$11,500) for the M8 Competition.

$6700 has been added to the starting price of the two-pronged BMW Z4 line-up which sees it now kick-off from $97,600 in sDrive 20i form and $138,200 for the M40i (+$4300).

BMW X3 prices are up by between $3400-$5800 depending on the variant, with the range now bookended from $81,700 and $175,300.

It’s a similar story for the coupe-shaped X4, albeit with marginally bigger increases of $4100-$6000 and bookend prices of $94,100 and $182,500.

Amid all these increases, however, is a $10,000 price cut for the BMW iX3 down to $104,900 – but the same can’t be said of its smaller iX1 counterpart, which went up $2000 to now start from $84,900.

Things aren’t so drastic over at Skoda, where the prices of all models besides the Superb have been shuffled upwards by $300-$1500; the large sedan and wagon line-up has been left untouched.

Despite being the smallest model in the range, it’s the lone Fabia Monte Carlo in possession of the portfolio’s biggest increase, pushing its already high list price up further, to $38,560.

The Skoda Scala small car has risen $600 across the board, with new starting and top-out prices of $32,790 and $40,990 respectively, while the Octavia mid-sizer – including the hot RS – has gone up a subtler $300-$400.

These marginal increases mean the Octavia now starts from $39,290 and maxes out at $53,090.

Skoda Kamiq prices are up by $400-$500 depending on the variant (now $35,490-$41,990), whereas the bigger Karoq has gone up between $500-$600 with bookend prices of $43,090 and $49,490.

Finally at the top of the range, two of the three Kodiaq variants (Sportline and Style) have copped a $400 hike, meaning the seven-seat large SUV now starts from $51,890.

If you’re still wincing at the size of some of BMW’s price increases then you’ll feel at ease with Volkswagen’s, which range from a much more wallet-friendly $240-$1400 across the range.

VW Polo prices are up $500 across the board for 2023, meaning the German light car now starts from $25,750 in Life form whereas the performance-minded GTI has inched even closer to $40K and now starts from $39,250.

The related but higher-riding T-Cross has easily faired the best of all the VW models with just $240 being added at the bottom ($30,990) of the range and $290 at the top ($33,490).

$500-$1000 has been added to the retail prices of both the core Golf and T-Roc line-ups, which now start from $35,190 and $37,100 and top out at $69,990 and $60,300 respectively.

The aging VW Passat sedan and wagon range is now $1000 more expensive across the board, with prices ranging from $50,790-$67,790 depending on the variant.

Meantime, its slipperier Arteon stablemate has had an extra $1250 slapped on its sticker price (now $63,990-$73,590), as has the flagship Touareg SUV (now $89,240-$117,540).

Similar margins have been imposed on the full-time Volkswagen Tiguan line-up, which has risen by $1100-1500 to now cost anywhere between $42,490-$70,490 plus on-road costs.

The seven-seat Tiguan Allspace is in a similar position, with its own $1100-$1400 increases taking its entry and flagship prices to $44,490 and $61,790 respectively.

Over at Volvo, the Swedish brand has quietly implemented price increases of up to $4000 to its local line-up, with the main offender being the flagship XC90 Recharge Ultimate T8 PHEV.

The rest of the affected XC40, C40, XC60, XC90, S60 and V60 Cross Country variants have had between $500-$2000 added to their local asking prices.

$500 has been added to the entry-level XC40 Plus B4, which now starts from $53,490, whereas the top-spec Recharge Twin Pure Electric now starts from $81,490 courtesy of its $2000 bump.

Both local C40 variants are $1000 dearer and now retail for $75,990 and $83,490 in standard Recharge and Recharge Twin forms respectively.

Only two of the four Australian XC60 variants have had their prices altered for 2023: the mid-range Ultimate B6 Dark that now sells for $86,990 (+$1000) and the top-spec Recharge Ultimate T8 PHEV at $101,990 (+$1000).

The solitary S60 Ultimate B5 Bright and corresponding V60 Cross Country Ultimate B5 Bright have each had their prices elevated by an even $1000, to now start from $66,990 and $69,490 respectively.

Finally at the top of the Volvo range, every XC90 variant has had $3000 added to its list price, meaning the entry-level Plus B5 now opens the large SUV line-up at $95,990 plus on-road costs.

Note: Mercedes-Benz also increased prices across the majority of models in its Australian range last month, but its ‘price on application’ policy and the state-specific drive-away pricing on its website makes it difficult to directly compare retail prices before and after the increase.

carsales has asked the German brand’s local division for confirmation and will publish a dedicated article on its price increases in the coming days.

For everything you auto know about EVs, listen to carsales' Watts Under the Bonnet: the electric car podcast

Join the conversation at 

our Facebook page

Or email us at 

editor@carsales.com.au