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It's just another car maker, putting out another variant at another price point to get more sales.
There is a ~$50k gap in the 3 series pricing between the 335ci and the M3, gotta fill it with something to increase market share.
It's also a good tactic to make people look at the Pure and the cost of the options, then just decide to buy the full version because the numbers at the end look close anyway.
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'06 130i M Sport Hatch
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