A Glimpse Behind the Glass Walls in Munich
Next to BMW AG’s headquarters in Munich, car enthusiasts can admire classics like the 507 convertible once owned by Elvis Presley. But behind closed doors on the same campus, BMW is preparing a vehicle that could define its future the iX3, the first model in the company’s ambitious Neue Klasse lineup.
Set to debut later this year, the iX3 isn’t just another electric SUV it’s the foundation of a 40-model rollout over the next two years, each equipped with advanced software, high-performance computing, and bold new design cues.
“We’re 109 years old, and it’s by far the biggest single investment into one architecture we’ve ever done,” said BMW CEO Oliver Zipse.
The Largest Investment in BMW’s History
The Neue Klasse represents BMW’s most significant platform shift since the 1960s, when the original “New Class” helped define the brand’s identity. Within two years of the iX3’s release, its technology will be present across BMW’s entire lineup including combustion, hybrid, and fully electric models.
Key innovations include:
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Up to 800 km (497 miles) of range under European testing
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400 kW charging capacity (adding ~200+ miles in 10 minutes)
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A digital “superbrain” offering 20x the computing power of current BMW systems
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Advanced driver-assist systems with smoother braking, steering, and traction control
This positions the iX3 to outperform Tesla’s Model Y, which currently tops out at 622 km range and 250 kW charging.
EV Technology Across All Powertrains
BMW is deploying Neue Klasse technology across all drivetrains not just EVs to cut costs and ensure consistency in software-driven features. This means infotainment, automated driving, and even climate control will be powered by the same next-generation computing architecture.
The system was developed through BMW’s global software hubs in Portugal, South Africa, China, India, Romania, and the U.S., employing over 5,000 IT specialists.
Facing Fierce Competition in China
The biggest test for Neue Klasse will be China, the world’s largest EV market, where domestic brands like BYD and Xiaomi are offering feature-rich electric vehicles at highly competitive prices.
BMW’s China strategy:
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Local manufacturing and tailored features (e.g., WeChat integration, China-specific app store)
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Priority rollout of new innovations, including AI-powered large language models from startup DeepSeek
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Focus on profitable segments while avoiding unprofitable market niches
Engineering the “Ultimate Electric Driving Machine”
BMW invited journalists to Miramas, France to test-drive advanced iX3 prototypes. Reviews praised:
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Superior ride comfort compared to current BMW EVs
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Seamless shock absorption without swaying
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Strong traction and stability, even in wet and curvy conditions
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Enhanced autonomous parking and driver-assist functions
“While we wouldn’t usually get frothed-up about yet another electric crossover, this one moves the dial,” wrote Top Gear’s Paul Horrell.
Global Production Strategy
Production of the iX3 will start at BMW’s new plant in Debrecen, Hungary, before expanding to facilities in China, Mexico, the U.S., and Munich.
By 2027, BMW’s Munich plant will transition to 100% electric vehicle production, ending a 75-year era of combustion engines.
A Potential Tesla Challenger at a Pivotal Moment
Tesla faces increased competition and regulatory uncertainty especially after changes to U.S. zero-emissions mandates. Zipse sees this as BMW’s opportunity:
“Neue Klasse will show that BMW can build superior electric cars, and the rest of the market will have to answer.”
Neue Klasse as 50% of Sales by 2030
BMW’s target is clear: make Neue Klasse EVs half of global sales by the end of the decade. With its combination of range, charging speed, luxury design, and driving dynamics, the iX3 may not just challenge Tesla it could reset the industry benchmark for electric SUVs.
The Bold Electric Future Redefining the Auto Industry
Munich, Germany – Just steps from BMW AG’s headquarters, visitors can marvel at automotive icons like Elvis Presley’s legendary 507 convertible. But behind secured doors nearby, BMW is working on a vehicle that could define its next century the all-electric BMW iX3, the first model in the automaker’s ambitious Neue Klasse (New Class) lineup.
This SUV is more than just another EV it’s the launchpad for 40 new or updated models that will share a groundbreaking digital architecture, advanced computing systems, and a radical design shift. The stakes couldn’t be higher: BMW is betting on its biggest single investment in 109 years to stay ahead in a market reshaped by Chinese automakers and evolving EV demands.
A Strategic Leap Amid Global Uncertainty
While many automakers are treading cautiously amid trade tariffs, supply chain disruptions, and fierce EV competition, BMW is charging forward. CEO Oliver Zipse likens the Neue Klasse to the game-changing sedans of the 1960s that cemented BMW’s identity.
“We can build superior electric cars, and the rest of the market will have to answer,” Zipse said.
The Neue Klasse iX3 will debut with up to 800 km (497 miles) of range under Europe’s WLTP cycle and 400 kW ultra-fast charging enough to add New York-to-Washington, DC range in just 10 minutes. For comparison, Tesla’s Model Y tops out at 622 km of range and 250 kW charging.
Built for All Powertrains, Driven by Supercomputers
While Neue Klasse introduces EV-focused innovations, BMW plans to use the same digital “nervous system” across all drivetrains to cut costs and boost scalability. The system’s four central computers — delivering 20x the computing power of previous models will control everything from infotainment and autonomous driving to climate systems.
BMW developed this tech through six global software hubs in Portugal, South Africa, China, India, Romania, and the US, employing about 5,000 IT specialists.
Battling for China’s EV Market
The Neue Klasse rollout comes as BMW faces tough headwinds in China, where sales have dropped 15% this year. Domestic giants like BYD and Xiaomi dominate with feature-rich, low-cost EVs. To compete, BMW has tailored its offerings for local tastes, integrating WeChat, a China-specific app store, and AI-powered voice assistants debuting in China first via a partnership with startup DeepSeek.
Still, the iX3 will need to prove it can justify its premium pricing against rivals like Tesla’s Model Y (from ¥263,500 / $36,700) and Xiaomi’s YU7 SUV, which drew 289,000 orders in its first hour.
Early Test Drive Impressions
BMW invited journalists to Miramas, France, to test early iX3 prototypes. The SUV impressed with its precise handling, smooth ride, and advanced driver-assistance features.
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Handling: More stable over bumps than the current BMW iX, with minimal sway.
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Driver Assist: Improved lane-keeping and early alerts on sharp curves.
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Traction: Engages seamlessly on wet, winding roads, noticeable only at high speeds.
Top Gear’s Paul Horrell called it “better even than chauffeur-oriented Rolls-Royces” in traffic smoothness.
Global Manufacturing Overhaul
The iX3 will be produced in BMW’s new Debrecen, Hungary plant, with Neue Klasse production expanding to China, Mexico, the US, and Munich. Transforming BMW’s historic Munich factory has been complex balancing demolition, construction, and ongoing 3 Series, 4 Series and i4 production.
By end of 2027, Munich will exclusively produce all-electric vehicles, ending a 75-year era of combustion engines at the site.
As Zipse’s tenure nears its end in 2026, his successor will inherit a bold plan: make Neue Klasse vehicles half of BMW’s global sales by 2030. While US tariffs and shifting regulations add uncertainty, Zipse remains confident.
“The tariff discussion is way exaggerated. What’s much more important is the question are the products attractive?”
If the iX3 and its Neue Klasse successors live up to their promise, BMW might just set the next benchmark for electric mobility.
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