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].
The BMW Group operates a multi-brand strategy that covers different market segments, from compact premium to ultra-luxury[3].
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:
For detailed information on BMW model options, see our guides on the BMW 3 Series and BMW 5 Series.
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 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].
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.
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].
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].
While Rolls-Royce maintains its distinct British heritage and bespoke manufacturing, BMW ownership has provided significant technological advancements[11]:
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].
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.
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