BMW Bets Big On Electric Vehicles With $10 Billion Neue Klasse Platform

Ahead of the Munich Motor Show, BMW has ushered in what it calls a“new era” launching an entirely new range of EV vehicles in a bid to keep pace with its Chinese rivals and Tesla.

The luxury German brand unveiled the iX3 and a sneak peek of the i3, which will be shown off to the public at the motor show this week, officially called IAA Mobility. There will be six new cars launched from its 'Neue Klasse' platform by 2027. Alongside this, around 40 BMW models will be updated with its new technologies.

BMW has invested more than €10 billion (Dh43 billion) in the development of its Neue Klasse EV platform, which includes advanced 'superbrain' systems, new software, batteries, electric motors and new technologies.

Oliver Zipse, Chairman of the BMW Board, called it a once-in-a-lifetime moment.“When else do you get to re-imagine a brand like BMW from the ground up? The chance to create an entirely new generation of vehicles? The chance to break completely new ground?”

BMW said it has skipped a generation, so big are the Neue Klasse technology leaps, and a near doubling in its cars' range, which could help win over many electric car sceptics.

The new iX3 has 400kW of charging power and can give you a range of up to 372km in just a 10-minute charge. Overall, the Neue Klasse uses 20% less energy consumption. The six new BMWs arriving by 2027 are expected to cover multiple segments - from compact saloons to larger SUVs - giving the brand a broad base to compete.

Production begins later in 2025 in a Hungarian factory fed by renewable energy, and the new model will go on sale in Europe in March 2026 at a price of around €68,900. It represents not just BMW's great hopes in the global market for premium electric vehicles, but for the German auto industry.

Khaleej Times was invited to an exclusive roundtable with BMW board member Jochen Goller, who heads up Customer, Brands and Sales, and asked him if this was a make-or-break moment for BMW.

“It's definitely make or break in terms of, are we the credible best player? Are we able to have the same success we have in the combustion engine market in the electric market, then that is true. But if you talk about the existence of the company, I would say no. It will define the future but it's not like our company is depending on its existence, but it is clearly the biggest investment we've ever done.”

He also played down the threat of cheaper Chinese rivals increasing their share of the EV market. Talking about the way they have undercut the market in terms of their lower price point, he questioned the profitability of these Chinese EV car brands.“There's a lot of irrational behaviour when we look at China,” Goller said.

Industry analysts say the Neue Klasse rollout will be a litmus test for Germany's ability to stay ahead in the premium EV market, as Chinese players rapidly expand in Europe with cheaper models.

At IAA Mobility, the Chinese EV brands will be out in force with Leapmotor debuting a new hatchback EV, alongside expected launches from BYD and GAC. BMW's heavy investment reflects the wider pressure on Europe's carmakers to reinvent themselves in the electric era.

MENAFN08092025000049011007ID1110032961