BMW plans new i1 EV and bigger-than-X7 model

Key highlights:

• BMW plans an electric i1 hatch for Europe
• A model above the X7 is under consideration for America
• China will build more Neue Klasse models locally

BMW has outlined a wider model strategy that could reshape both ends of its range. The company plans region-specific vehicles for Europe, China and the US, reflecting the different tastes in each of its three key markets.

The biggest clues point to a new electric entry-level model for Europe, a potential flagship above the X7 for the US, and a more defined role for BMW Alpina. China will also get more locally built Neue Klasse models as BMW focuses imported vehicles on higher-margin products.

Electric i1 planned for Europe

BMW says it will develop a vehicle for the “high-volume entry segment” in Europe using its electric-only Neue Klasse platform, which effectively confirms earlier reports that the next-generation 1 Series will gain an electric i1 hatchback based on the dedicated EV architecture.

Neue Klasse performance variants use a dual-motor all-wheel-drive setup, while base models use rear-wheel drive, which means the i1 could return the 1 Series to rear-wheel drive for the first time since 2019.

The petrol and diesel-powered 1 Series will take a different path. BMW is expected to keep that version on a front-wheel-drive architecture shared with Mini’s petrol and diesel models.

Despite their different platforms, the electric i1 and combustion-powered 1 Series are expected to share plenty of styling cues. BMW’s latest i3 and eighth-generation 3 Series, both released this week, offer a clue about how closely related the designs could look despite their different technical foundations.

BMW considers a model above the X7

BMW also revealed plans for the opposite end of its range, as the company is considering an additional model above the X7, specifically tailored to US-market requirements. BMW has not said the vehicle would be larger than the X7. 

Its wording simply places the model above the current flagship SUV, leaving several possibilities open:

1. An even larger SUV

The most obvious option would also demand the biggest investment. BMW could develop a larger SUV, potentially called the X9.

2. An X7 coupe

BMW could instead create a more coupe-like version of the X7 and potentially call it the X8, following its existing naming approach.

3. A more luxurious X7

BMW could also take the X7 and push it further upmarket with a more luxurious version.

That would effectively give BMW a Bavarian take on Maybach.

BMW’s luxury plans also include BMW Alpina, which will unveil its first model developed under BMW ownership in 2027. BMW has revealed little about the vehicle, but it says the model will be inspired by the BMW 7 Series.

The new Alpina model and future vehicles from the brand will occupy the space between BMW and Rolls-Royce.

Also read: 2027 BMW i3 electric sedan priced from $96,900 in Australia

China gets more local production

BMW was less specific about its future Chinese model plans. The company wants to improve its bottom line by expanding local production in high-volume segments with vehicles based on the Neue Klasse architecture.

At the same time, BMW plans to reduce its range of imported vehicles in China to models that deliver the highest margins. BMW is also considering exporting vehicles built in China to Southeast Asian markets, although it has not identified which models could make the move.

BMW’s local joint venture, BMW Brilliance, currently produces a broad range of vehicles in China:

Neue Klasse production will begin in China later this year, starting with the long-wheelbase i3.

What’s in store for Australia?

Expect the Australian BMW line-up to feature fewer complex bespoke option combinations as the brand plans to optimise global factory speed and cut production costs. The brand confirmed it will not build a successor to the BMW 2 Series Active Tourer.

While Europe gets the entry-level Neue Klasse EV first, the underlying new software-defined architecture will inevitably dictate the next-generation electric X-SUVs and 3 Series variants bound for Australian shores late in the decade.

BMW’s regional strategy is becoming clearer

BMW’s latest plans show the company tailoring its future range to individual markets rather than taking the same approach everywhere. 

Europe will get a high-volume electric model based on Neue Klasse, the US could receive a vehicle positioned above the X7, and China will see more local production while BMW trims back lower-margin imports.

The next few years will therefore bring major changes at both ends of BMW’s lineup.

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