BMW taps fleet market with new EV variants below LCT

BMW Australia has announced it will sell three new EV variants priced below the Luxury Car Tax (LCT) threshold. These newly introduced variants are designed to appeal to a broader customer base, including the fleet and leasing market, thanks to certain tax benefits.

The three new variants include the iX1 eDrive20, the eDrive35, and the iX3 M Sport, all of which are below the 2023-2024 luxury car tax threshold of $89,332 for fuel efficient vehicles.

The BMW iX1 eDrive20 is the most affordable of the trio. This small SUV is priced at $78,900 before on-road costs. It comes with a 67 kWh battery pack that delivers up to 475 km of range, while its 150kW/247Nm electric motor accelerates from 0-100 km/hr in 8.6 seconds.

Meanwhile, the BMW i4 eDrive35 is priced at $85,900 before on-road costs. This mid-size sedan is equipped with a 70 kWh battery pack offering up to 430 km of range. With a 210kW/400Nm powertrain delivering 210 kW of power and 400 Nm of torque, the i4 eDrive35 is quicker than the iX1 eDrive20, accelerating from 0-100 km/hr in just 6 seconds.

Lastly, the BMW iX3 M Sport is a mid-size SUV priced at $89,100 before on-road costs (MRSP). It features an 80 kWh battery pack that provides up to 461 km of range. The powertrain offers 210 kW of power and 400 Nm of torque, and it is slower than the new i4 variant with acceleration 0-100 km/hr in 6.8 seconds.

These are in addition to the iX1 xDrive30, which is priced at $84,900 before on-roads and delivers 230kW of power and 494Nm maximum torque from its all-electric motor. It offers more than 400km range from its 67kWh battery and sprints from 0-100 km/hr in 5.6 seconds.

All pricings are BMW’s recommended retail pricing including GST, before on-road fees and charges. Note, BMW states that “Range is based upon Combined Driving Test Cycle in accordance with ADR 81/02 on purpose built test vehicles” and “should not be expected to be achieved in real world driving conditions.”

Comparing BMW’s new iX1, iX3 and i4 variants

While the i4 eDrive35 and iX3 M Sport share similar powertrains, the iX1 eDrive20 stands out with its longer range despite having a smaller battery pack, thanks to its lower power consumption figures. The iX1 eDrive20 also offers a more budget-friendly option without compromising much on performance.

The iX3 M Sport and i4 eDrive35 are expected to hit Australian showrooms in the fourth quarter of 2023, while the iX1 eDrive20 is slated for the first quarter of 2024.

Unsurprisingly, these new variants don’t pack quite as many bells and whistles as their more expensive counterparts. 

For instance, the iX1 eDrive20 lacks features like 19-inch wheels, adaptive suspension, and a panoramic glass sunroof that are available in the more expensive iX1 xDrive30. 

Similarly, the i4 eDrive35 misses out on 19-inch wheels and the M Sport styling pack, among other features, compared to the eDrive40 variant.

BMW eyes 20 per cent electric vehicle sales

BMW's new offerings are part of a strategic move to increase its EV market share in Australia. Globally, the company aims to have 20% of its new vehicle sales be fully electric by 2025, ramping that up to 25% by 2026. However, year-to-date in Australia BMW has added 1,035 EVs to the market, representing just 6% of its total sales to the end of August.

BMW's new EV variants are priced below the LCT threshold for zero-emission vehicles, which is set at $89,332 for this financial year. This makes them eligible for fringe benefit tax (FBT) exemptions, providing significant financial incentives for businesses looking to update their fleets with electric vehicles. Already, all-electric BMWs have proven a favourite for the federal government’s Comcar fleet.

Launches for each model are estimated by BMW Australia in the second quarter of 2023 for the iX1 xDrive30, the fourth quarter of 2023 for the i4 eDrive35 and iX3 M Sport, and the first quarter of 2024 for the iX1 eDrive20.

For more information on the LCT and FBT exemptions for electric vehicles consult the Australian Taxation Office website.