As was pointed out, this is tradition dating back to the Z3-based M roadster and coupe. Although the argument could not be made when the Z3/Z4 based M cars were made, now this strategy actually makes sense due to the M Performance versions of cars that we will be seeing. These cars are supposed bridge the gap between the regular cars and the full-on M versions. So far, other markets have seen the M550d and the X6 M50d, the new M135i, etc.
As for the 1 M coupe, had BMW not produced the iconic M1, this car would have been badged as such.
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2020 F87 M2C Hockenheim Silver/MT
2002 E39 M5 Sterling Gray/Caramel
2007 E86 Z4M Coupe Silver Gray/Black
2021 Kia Telluride (hauler)
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