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BMW itself is a luxury brand, but the BMW Group also owns Rolls-Royce as its ultra-luxury division, representing the pinnacle of automotive luxury[1]. Within the BMW brand, the M division (BMW M GmbH) serves as the high-performance luxury tier, producing cars like the M3, M5, and M8[2]. The BMW Group’s complete portfolio includes BMW (premium luxury), MINI (compact premium), Rolls-Royce (ultra-luxury), and BMW Motorrad (motorcycles)[1].
BMW Group Brand Hierarchy
The BMW Group operates a multi-brand strategy that covers different market segments, from compact premium to ultra-luxury[3].
BMW (Premium Luxury)
The flagship BMW brand targets the mainstream premium segment with vehicles ranging from approximately $45,000 to over $200,000[4]. BMW is known for performance-oriented luxury vehicles with the tagline “The Ultimate Driving Machine.” The brand offers:
- Sedans: 3 Series, 5 Series, 7 Series
- SUVs/SAVs: X1, X3, X5, X7
- Coupes/Convertibles: 2 Series, 4 Series, 8 Series
- Electric vehicles: i4, i5, i7, iX
For detailed information on BMW model options, see our guides on the BMW 3 Series and BMW 5 Series.
Rolls-Royce (Ultra-Luxury)
Rolls-Royce Motor Cars represents the absolute pinnacle of automotive luxury and is a fully-owned subsidiary of BMW Group[5]. BMW acquired rights to the Rolls-Royce name in 1998 and began full production of Rolls-Royce automobiles in 2003 at a new manufacturing facility in Goodwood, England[5].
Unlike BMW, which produces hundreds of thousands of vehicles annually, Rolls-Royce targets ultra-high-net-worth individuals with handcrafted vehicles starting at approximately $370,000[6].
MINI (Compact Premium)
MINI appeals to younger, urban customers seeking compact premium vehicles[3]. BMW relaunched the MINI brand in 2001 after acquiring it as part of the Rover Group purchase[5]. About one in four MINI vehicles sold is now fully electric[7].
BMW M (Performance Luxury)
The M division represents BMW’s high-performance sub-brand, producing both standalone M models and M Performance variants of regular BMW vehicles[2]. M GmbH has posted record sales for 13 consecutive years, with one in ten BMW brand vehicles now featuring M technology[7].
For details on BMW’s M offerings, explore our M3 and M5 pages.
Rolls-Royce vs BMW: How They Differ
Understanding the distinction between BMW and Rolls-Royce helps buyers recognize where each brand sits in the luxury hierarchy[8].
| Feature | BMW 7 Series | Rolls-Royce Ghost |
|---|---|---|
| Starting Price | ~$95,000[8] | ~$370,000[6] |
| Engine | 375 hp 6-cylinder[8] | 563 hp V12[8] |
| Fuel Economy | 25 city / 31 highway mpg[9] | 12 city / 19 highway mpg[9] |
| Curb Weight | 4,720 lbs[8] | 5,617 lbs[8] |
| Production | Mass production | Handcrafted, Bespoke |
| Target Buyer | Executives, enthusiasts | Ultra-high-net-worth individuals |
While the BMW 7 Series is BMW’s flagship luxury sedan, it’s positioned significantly below Rolls-Royce in both price and exclusivity. The Ghost starts at nearly four times the price of a 7 Series[6].
Current Rolls-Royce Models and Pricing
Rolls-Royce currently offers four model lines, all built on BMW Group architecture but with completely bespoke bodywork, interiors, and customer experience[6]:
| Model | 2025 Starting Price | Description |
|---|---|---|
| Ghost | $370,000[6] | Entry-level luxury sedan |
| Ghost Extended | $410,000[6] | Long-wheelbase sedan |
| Ghost Black Badge | $430,000[6] | Sport-tuned variant |
| Cullinan | $392,000[6] | Luxury SUV |
| Cullinan Black Badge | $454,000[6] | Sport-tuned SUV |
| Spectre | $423,000[6] | First all-electric Rolls-Royce |
| Phantom | $510,000[6] | Flagship sedan |
| Phantom Extended | $560,000[6] | Long-wheelbase flagship |
Most Rolls-Royce buyers add $50,000 to $100,000 in bespoke options, pushing typical transaction prices well above starting MSRPs[10]. Phantom buyers often reach $700,000 or more after customization[10].
At Rolls-Royce, about one in three vehicles is now fully electric with the Spectre model[7].
How BMW Influences Rolls-Royce
While Rolls-Royce maintains its distinct British heritage and bespoke manufacturing, BMW ownership has provided significant technological advancements[11]:
- Platform sharing: Modern Rolls-Royce models utilize BMW Group architecture
- Engine technology: The Ghost and Cullinan use BMW-derived V12 engines
- Electronics: Infotainment and driver assistance systems benefit from BMW engineering
- Manufacturing efficiency: BMW’s production expertise supports quality consistency
However, each Rolls-Royce is still assembled at the dedicated Goodwood facility in England, with extensive hand-finishing that takes weeks per vehicle[5]. The relationship has become less obvious in recent years, with current Rolls-Royce models showing minimal visible BMW influence[5].
Comparison with Other Luxury Brand Structures
Understanding how BMW Group compares to competitors helps contextualize its brand hierarchy[3]:
| Parent Company | Luxury Brand | Ultra-Luxury Brand |
|---|---|---|
| BMW Group | BMW, MINI | Rolls-Royce |
| Volkswagen Group | Audi | Bentley, Lamborghini |
| Mercedes-Benz | Mercedes-Benz | Mercedes-Maybach |
| Hyundai Motor Group | Genesis | — |
| Toyota | Lexus | — |
Unlike Toyota (Lexus) or Hyundai (Genesis), which created separate luxury divisions from scratch, BMW acquired an established ultra-luxury marque in Rolls-Royce[3]. This acquisition strategy mirrors Volkswagen’s ownership of Bentley.
For context on BMW’s competitors, see our BMW vs Mercedes cost comparison.
Key Takeaways
- BMW is a luxury brand, while the BMW Group owns Rolls-Royce as its ultra-luxury division
- The BMW Group operates four brands: BMW, MINI, Rolls-Royce, and BMW Motorrad
- Rolls-Royce prices start at approximately $370,000 (Ghost), nearly four times the cost of a BMW 7 Series
- BMW’s M division represents the performance-luxury tier within the BMW brand, with record sales for 13 consecutive years
- BMW acquired Rolls-Royce in 1998, with production beginning at the Goodwood facility in England in 2003
Frequently Asked Questions
Is BMW considered a luxury brand?
Yes, BMW is one of the world’s leading luxury automotive brands, alongside Mercedes-Benz and Audi[1]. BMW vehicles are positioned in the premium segment with prices ranging from approximately $45,000 to over $200,000. The BMW Group describes itself as the world’s leading provider of premium cars and motorcycles[1].
Does BMW own Rolls-Royce?
What is the most expensive BMW brand?
Rolls-Royce is the most expensive brand under BMW Group ownership, with the Phantom Extended starting at approximately $560,000 and often exceeding $700,000 after customization[10]. Within the BMW brand itself, the M8 Competition is among the most expensive models at over $150,000.
Is there a BMW brand above the 7 Series?
The BMW 7 Series is the flagship model within the BMW brand itself. For those seeking more exclusivity and luxury, Rolls-Royce (owned by BMW Group) offers vehicles starting at approximately $370,000[6]. The Rolls-Royce Ghost represents the natural step up from a 7 Series for buyers seeking ultimate luxury[8].
What is BMW M?
BMW M is the high-performance division of BMW, producing sports-oriented variants of BMW models[2]. M stands for “Motorsport,” reflecting the division’s racing heritage. M vehicles feature enhanced engines, suspensions, and styling while maintaining daily usability. Popular M models include the M3, M4, M5, and M8[2].
References
- BMW Group. (2025). Brands & Business Segments of BMW Group. https://www.bmwgroup.com/en/company/brands-products.html
- BMW M. (2025). All BMW M Series at a glance. https://www.bmw-m.com/en/topics/all-models.html
- Companies History. (2025). BMW Group Competitors, Revenue, Marketcap, Net Worth. https://www.companieshistory.com/bmw-group/
- BMW India. (2022). The BMW Group. https://www.bmw.in/en/topics/Fascination-BMW/the-corporation-original/the-bmw-group.html
- Cars.com. (2024). Which Automaker Owns Your Luxury Brand? https://www.cars.com/articles/which-automaker-owns-your-luxury-brand-1420694704477/
- Supercars.net. (2024). Rolls-Royce – Current Lineup (Reviews, Prices & Our Top Picks). https://www.supercars.net/blog/all-brands/rolls-royce/rolls-royce-current-models/
- Automotive World. (2025). BMW Group on track for growth in 2025. https://www.automotiveworld.com/news-releases/forward-momentum-through-technology-openness-strong-product-line-up-and-neue-klasse-bmw-group-on-track-for-growth-in-2025/
- iSeeCars. (2024). BMW 7 Series vs. Rolls-Royce Ghost. https://www.iseecars.com/compare/bmw-7_series-vs-rolls__royce-ghost
- TrueCar. (2024). BMW 7 Series vs. Rolls-Royce Ghost. https://www.truecar.com/compare/bmw-7-series-vs-rolls-royce-ghost/
- Flavor365. (2025). How Much Does a Rolls Royce Cost? (2025 Price Guide). https://flavor365.com/rolls-royce-prices-a-complete-breakdown-for-2025/
- BMWInsights. (2024). The Impact Of BMW’s Ownership On Rolls-Royce. https://bmwinsights.com/does-bmw-own-rolls-royce/
I am a senior automotive analyst at Autvex. Expert vehicle evaluations, in-depth reviews, and objective analysis helping readers make informed automotive decisions with years of industry experience.
