- BMW drops the base XM for 2026 and sells only the XM Label.
- Starting price falls to $159,600 but incentives shrink sharply.
- Power climbs to 738 hp with faster charging now standard.
BMW probably had loftier hopes for the opinion-splitting XM when it first hit the market, likely counting on sales figures that would make its development effort worthwhile. That vision hasn’t quite panned out. In the US last year, just 1,878 units were sold, making it the company’s lowest-volume model.
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In what seems like an effort to spark even modest interest in the XM, BMW has streamlined the SUV’s lineup for 2026 and adjusted the pricing, though not as dramatically as it might first appear. The XM now comes only in XM Label trim, which previously served as the top-spec version.
The starting price has been slashed by $27,100 compared to last year’s XM Label, bringing it down to $159,600. That also makes it $900 cheaper than the base XM from 2025, which had started at $160,500.
While BMW may have been wise to keep both versions in its line-up and cut the price of the base version significantly, doing so could have stepped on the heels of the X5 M Competition, which starts at $131,000.
A Cut in MSRP, But at What Cost?
The advertised savings also don’t tell the full story. According to CarsDirect, buyers of the prior-model year 2025 XM could stack up to $37,500 in incentives. This included purchase and lease credits, loyalty offers, and a substantial $12,500 discount for owners of flagship models like the 7-Series, 8-Series, or X7. Those offers are no longer on the table.
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For 2026, the total incentive package is notably smaller. BMW is offering a $7,500 credit and a $7,500 loyalty discount, adding up to $15,000 in possible savings. That’s between $10,000 and $22,500 less than what was potentially available last year. So while the sticker price has come down, the actual cost to the customer might not have budged much, if at all.
Upgrades Beneath the Surface
Prior to the launch of the 2026 model, the entry-level XM hybrid had come standard with a twin-turbo 4.4-liter V8, a 19.2 kWh battery pack, and an electric motor incorporated into the eight-speed automatic transmission. This gave it a solid 644 hp and 590 lb-ft (800 Nm) of torque.
In the revised XM Label, those numbers rise to 738 horsepower and 738 lb-ft (1,000 Nm), enough to send the hefty SUV from zero to 60 mph (96 km/h) in just 3.6 seconds. Top speed climbs to 175 mph (282 km/h).
For 2026, a few additional changes round out the package. The AC charging rate has been increased from 7.4 kW to 11 kW. There’s also a new BMW Individual Frozen Tanzanite Blue paint option, available Jet Black 23-inch M wheels, and three new interior themes added to the cabin.
