BMW plans to launch the iX3, its new electric SUV, as the first of 40 updated or new models by 2027.

The iX3, which will be produced in Hungary, is expected to offer up to 800 kilometers of range under European testing, and a maximum charging rate of 400 kW, according to the company.

This would exceed the range and charging speed of Tesla’s Model Y, which currently offers up to 622 kilometers of range and a 250 kW charge rate.

BMW’s new models will share software and high-performance computing capabilities, which the company said will be deployed across all drivetrain types, though some digital features are exclusive to battery-electric vehicles.

The company is responding to increased competition from Chinese manufacturers and shifting market dynamics amid growing EV adoption.

BMW has also tailored features for local markets, such as integrating WeChat and launching China-specific apps.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ BMW’s EV journey shows how early investments can pay off decades later

BMW’s massive investment in the Neue Klasse platform represents the culmination of over 50 years of electric vehicle development, dating back to 1969 when the company began EV research1.

This long timeline demonstrates how BMW’s early commitment to electric technology, despite multiple false starts, positioned the company to compete effectively when the market finally matured.

The company’s first mass-market EV, the i3 launched in 2013, had only 81 miles of range and faced declining sales after peaking in 20151.

Now BMW’s upcoming iX3 promises 800 kilometers of range with 400kW charging—a dramatic leap that surpasses Tesla’s Model Y specifications of 622 kilometers and 250kW charging.

This progression from the limited i3 to the high-performance iX3 illustrates how sustained R&D investment over decades can create breakthrough moments, even when early products struggle in the market.

2️⃣ European luxury EV leadership is shifting away from Tesla’s early dominance

BMW recently overtook Tesla in European EV sales, selling 19,000 battery electric vehicles compared to Tesla’s 16,000 units2.

This represents a significant shift from Tesla’s earlier dominance, when the Model 3 became the best-selling luxury car in the U.S. with average prices around $59,0003.

The reversal demonstrates how traditional automakers can reclaim market leadership when they deploy competitive technology and leverage their established manufacturing and distribution networks.

BMW’s success in Europe contrasts sharply with its struggles in China, where the company’s sales dropped 15% in the first half after declining 13% in 2024.

The regional variation highlights how EV market dynamics differ significantly across geographies, with Chinese manufacturers operating at 30-50% lower costs than Western competitors4, making price competition particularly intense in that market.

Recent BMW developments

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