BMW has introduced a new i7 prototype with a solid state battery pack.
It was developed with Solid Power and will be tested around Munich.
Solid state batteries offer numerous benefits including higher energy densities.
Solid state batteries are inching closer to reality as BMW has become the latest automaker to introduce a road-going prototype. It’s based on the i7 and features high-tech cells from Solid Power.
The companies have been working together since 2016 and the prototype will be driven around Munich as part of the testing process. The automaker didn’t say much about this, but stated they’ll be examining cell expansion, operating pressures, and temperatures. They added, the “use of Solid Power cells with sulfide-based electrolytes and their complete integration into a battery pack will provide the BMW Group with further important findings in the test program over the coming months.”
While BMW was coy on specifics, solid state batteries offer an assortment of advantages over traditional lithium-ion batteries. One of the most notable is higher energy densities, which can allow for smaller battery packs or longer ranges without weight penalties. Solid state batteries also promise to deliver improved performance and safety.
BMW didn’t say when we can expect to see solid state batteries in production vehicles, but implied they’re still a ways off. As they explained, “further development steps are required to implement ASSB [all-solid-state battery] technology in a competitive overall storage system.”
That being said, the company is optimistic about the future. BMW battery guru Martin Schuster said, “Our i7 ASSB test vehicle on the road is a perfect example of the BMW Group’s technology-open mindset. We are continuously advancing the development of new battery cell technologies and are constantly expanding our know-how with valuable partners such as Solid Power. ”
Besides BMW and Mercedes, Stellantis is working on solid state batteries and has plans to introduce a fleet of prototype Dodge Charger Daytona EVs by the end of the year. Like the EQS, they use Factorial cells and these are slated to have an energy density of 375 Wh/kg.
The automaker remains committed to ICE, hybrid, EV, and hydrogen-powered vehicles.
Demand for BMW’s electrified vehicles is on the rise, and it has many new EVs on the cards.
A new hydrogen vehicle is being readied by BMW, complete with help from Toyota.
BMW has been criticized in the past for being too slow to develop compelling EVs and was also one of the few major automakers that did not commit to a firm date when it would be selling nothing but EVs. Now, as some of its rivals back away from their EV-only pledges, Munich’s more cautious approach seems to be paying off.
The German brand has long believed that a wide range of powertrain technologies is needed, and during its annual meeting last week, boss Oliver Zipse doubled down on this approach. As such, BMW will continue to build and sell petrol, diesel, hybrid, and also hydrogen vehicles alongside the slew of new EVs it already has in the works.
“We take ambitious political goals seriously – but we don’t believe in technically one-sided regulations that limit supply,” Zipse said. “The same principle applies to the circular economy. Here, too, only a comprehensive approach can enable and stimulate investment. Because, as a standalone technology, e-mobility leads down a dead-end street – that much is now clear. The differences are simply too great, even just within Europe.”
Zipse used the examples of Belgium and Italy. In Belgium, generous incentives resulted in EVs and hybrids reaching a market share of over 60% last year. By comparison, they only accounted for 4% of sales in Italy. He added that the most important question is how to effectively cut CO2 emissions, and that the answer is not “thinking in black and white.”
“While other manufacturers are reversing course or adjusting their strategy, we are on exactly the right track,” Zipse told shareholders. “Even policymakers are starting to come around: The new German federal government supports a broad approach to technology, while the European Commission seeks to make Europe more competitive.”
Demand is on the rise for BMW’s electrified models. In the first quarter, electrified vehicles made up more than 25% of all new cars it sold, while almost one-fifth of them were fully-electric. In 2028, BMW will release its first hydrogen production vehicle with the help of Toyota.
Several pre-production prototypes of the 2026 BMW iX3 were spotted in the wild.
The latest batch of spy shots reveals the final lighting signature of the electric SUV.
BMW’s first Neue Klasse offering will be revealed this fall at the Munich Auto Show.
Update: With its world debut now confirmed for this September at the Munich Motor Show, BMW is putting the finishing touches on the new iX3. The electric SUV has been in development for quite some time, and the latest images from Nurburgring testing show the prototype fitted with what appear to be the finalized headlight and taillight designs.
One of the test vehicles caught by our spy photographers was fitted with wheels that resemble those from the Vision Neue Klasse sedan concept. It’s still unclear whether these are standard alloys or aero-style covers, but the more pronounced side skirts and bulkier front bumper point to this tester being the M Performance variant, similar to the electric iX M50 or the current gas-powered X3 M50
This sportier version of the iX3 is expected to feature a dual-motor setup and will probably retain the M50 badge. Beyond the upgraded powertrain and more aggressive exterior styling, it’s expected to feature an M-tuned chassis with a firmer, lower suspension and drive modes tailored specifically for performance.
Previously, our photographers also spotted a pre-production prototype of the upcoming BMW iX3 Neue Klasse SUV not long after it rolled off the line at the automaker’s plant in Hungary. The fully electric model is now undergoing final-stage development tests ahead of its planned market launch towards the end of 2025.
The BMW iX3 Neue Klasse made its spy debut in November 2023, but early prototypes featured provisional lighting units. The new prototype is fitted with the production headlights and taillights, revealing a modern LED lighting signature. This was the last missing piece of the puzzle, as the bodywork of the SUV has already been uncovered in recent patent drawings.
What’s Up With The Frunk?
The new prototype was also spotted with its hood open. While the BMW iX3 doesn’t appear to have a frunk, as the front space is currently packed with drivetrain hardware, this setup might just be a cover in both the literal and figurative sense, acting as a placeholder for testing. The final production model will in all likelihood include front storage, similar to what’s found in other EVs.
We can also see the iX3’s pop-out door handles, which are less futuristic than the fin-shaped solution of the Vision Neue Klasse X concept. Judging from earlier spy shots, these will likely find their way into the larger iX5.
The wheels of the prototype suggest that this is one of the lesser versions of the BMW iX3. Our spy photographers suggest that the wheel diameter of the production model will be between 18 inches and 22 inches depending on the trim. The larger size will likely be reserved for the performance-focused offering by BMW M.
The new BMW iX3 will be the first production model to adopt the Neue Klasse styling language before it gets applied to the automaker’s entire range of combustion and electric models. The iX3 will be followed by the i3 sedan, the similarly-sized 3-Series, and the new generation of the X5/iX5, which are set to debut in the coming years.
Under the skin, the Neue Klasse platform supports a new generation of lighter and more efficient electric motors. The iX3 will launch with single and dual-motor configurations, with output expected to range from around 300 to 600 horsepower. It will also feature 800V electrical architecture for faster charging and house next-generation batteries that are 20% more energy-dense, boosting range and efficiency by up to 30%. In its top configuration, the iX3 could travel as far as 800 kilometers, or about 500 miles, on a full charge.
Series production of the Neue Klasse-based iX3 is scheduled to begin later in the second half of 2025.
BMW M vice president Sylvia Neubauer says it’s hard to convince its core customers to buy EVs.
The next-generation M3 will be available both as an ICE and an EV, on two different platforms.
The M division currently also has hybrids in its range, including the potent XM and the new M5.
Many car manufacturers are learning that it’s easier to convince someone shopping for an affordable and efficient car to opt for an EV than it is to persuade a diehard car enthusiast to buy a car that utilizes electrification, let alone a full EV.
This shift presents a unique challenge for enthusiast brands like BMW’s M division, but the company is confident it will continue to deliver the right products for its loyal customer base as the industry makes the inevitable switch to electrification.
If BMW M can learn anything from the missteps of arch-rival Mercedes-AMG with the four-cylinder hybrid C 63 it’s that enthusiasts know what they want and, in this case, want that familiar sound and rev building they know and love when they’re behind the wheel of a sportcar. BMW M vice president Sylvia Neubauer acknowledged this is a challenge shortly after the M5 morphed into a plug-in hybrid, and it started working on M’s first fully-fledged EV.
“It’s been a challenge to keep this up,” she told Top Gear. “If you look at our following, which mostly consists of enthusiasts, they aren’t the most natural types to go electric”, Neubauer said.
“But I think we should not describe this target group as the only target group, because we are seeing a change already. Of course, the enthusiasts are the core group, and it’s going to be harder to convince them to switch, but we will have the right product for them,” she added.
What M’s VP is saying is that the best way to keep its core customers and at the same time attract new ones interested in EVs is (obviously, but also costly) to offer options that appeal to both. Thus, this is exactly what it will do with the next-gen M3. In addition to developing a ICE model with an updated version of the inline-six found in the current G80, BMW will offer an all-electric version of its sports sedan, potentially dubbed the iM3.
Key technical specifications about these two models remain under wraps, but it’s reasonable to assume the next ICE-powered M3 will push horsepower deeper into the 500s. The electric version will likely pack a lot more grunt, as BMW has already revealed its quad-motor setup can support up to 1,341 hp, even though the electric M3 likely won’t ever get even remotely close to that number.
Nevertheless, most diehard petrolheads would happily trade a straight line performance for a much more engaging powertrain – besides, even the current combustion M3 is anything but lacking in power.
The second-generation BMW X7 has been spied undergoing testing for the first time.
The model sports an evolutionary design and appears to eschew the Neue Klasse look.
Expected to arrive in 2027, it could be offered with gas, diesel, and electric options.
The BMW X7 has been a popular addition to the lineup and finished 2024 as the brand’s fifth best-selling vehicle in America. While sales were up 12.5% last year, the crossover is getting old as it originally debuted in 2018.
BMW is getting ready to address this as spy photographers have snapped the first pictures of the second-generation X7. Caught undergoing testing in Europe, the model sports an evolutionary design that eschews the Neue Klasse look. This is a surprising development as the redesigned X5 has already been spotted with the retro-futuristic aesthetic.
While changes are possible, the prototype sports an evolutionary front fascia with a familiar grille that is flanked by split lighting units. They’re joined by a new front bumper, which sports a pronounced horizontal element as well as a wide lower intake.
Moving further back, we can see an evolutionary but streamlined design. As part of this effort, there’s more curvaceous bodywork and new Ford Mustang Mach-E style door pulls. They’re joined by an upward sweeping beltline, sizable wheels, and a beefy braking system with blue calipers up front.
SHProshots
The rear end is heavily disguised, but the license plate recess has been moved from the liftgate to the bumper. Elsewhere, there’s a four-tailpipe exhaust system and what appears to be a longer spoiler.
Since the crossover is still a ways out, little is known about it. However, it’s expected to ride on the newer CLAR-WE platform and be offered with an assortment of gasoline and diesel engines. More interestingly, we can expect a fully electric iX7 variant. This promises to provide a powertrain for everyone as well as give the upcoming Genesis GV90 some electrifying competition.
BMW’s Head of Neue Klasse confirmed the next M3 will offer both EV and ICE versions.
The gas-powered M3 will feature a “new type of six-cylinder engine” for traditional fans.
Both models will share styling, but the iM3 could emerge as the performance leader.
BMW has been teasing the i3 / 3-Series Neue Klasse for months and now they’re ready to talk about the next-generation M3. It will reportedly arrive within the next two years and be offered as an EV as well as an ICE-powered model.
This had been expected, but BMW’s Dr. Mike Reichelt recently confirmed the news to Top Gear. As he told the publication, “We’re … going to offer it with a new type of six-cylinder engine, because we understand it may be early for some committed M fans to make the switch.” However, he said they’re “convinced the fully-electric M3 is going to hit new heights and reach new target groups, because it’ll behave completely differently.”
BMW’s Neue Klasse boss went on to say both the electric and ICE-powered M3 will have the “same design and digital features.” However, they won’t be all about 0-60 mph (0-96 km/h) times.
Quite the opposite as the company is focused on driving dynamics and this is where their Heart of Joy comes into play. While the name sounds like a dumb marketing gimmick, BMW has previously described the system as a control unit that manages the powertrain, brakes, steering, and recuperation system. That doesn’t sound too remarkable, but the Heart of Joy processes information ten times faster than previous systems.
This promises to deliver a “whole new level of speed and precision” as well as a more symbiotic relationship between the various components. Speaking of which, the interaction between the powertrain, brakes, and energy recuperation system means drivers won’t need to apply the brakes in most situations. This promises to help increase efficiency by up to 25%.
Getting back to the interview, Reichelt said you’ll be able to “go into a bend with a certain steering angle and don’t need to make corrections mid-corner.” This, of course, could be a good or bad thing depending on how ‘pure’ you like your driving experience.
The M3 Touring and M5 Touring has convinced BMW to build more estates.
The new i3 will be the second model launched from its Neue Klasse family.
It will also spawn an all-electric M3 that’ll be sold along the ICE version.
Electric cars are no longer just science projects or niche status symbols, and BMW clearly knows it. As expected, the new all-electric Neue Klasse sedan from BMW will revive the i3 nameplate, but it will look and feel very different from the quirky original hatch that launched back in 2013. This time, BMW is aiming the new i3 squarely at the Tesla Model 3, and it might just become the most important vehicle in BMW’s next generation of EVs.
BMW has confirmed that it will kick off the Neue Klasse era with the second-generation iX3, which has already been previewed by a concept. Once the iX3 arrives, BMW will follow it up with the new i3. Interestingly, the i3 will not just be offered as a traditional sedan, but will also come in a Touring estate version for those who still appreciate a good wagon.
In a recent interview with Autocar, BMW Group design boss Adrian van Hooydonk pointed out that the surprising success of the M3 Touring and M5 Touring proves that there is still life left in the estate segment.
Touring Models Are Back, Apparently
“I think the ‘touring is making a comeback,” he said. “Of course, we’ve propelled it with the M3 Touring and M5 Touring: they seem to be very popular, even in countries where tourings or estates are traditionally not very [popular]. So yes, there is new wind in that segment, and we’re very happy about that.”
“SUVs are half of our business,” van Hooydonk continued. “The other half are still sporty, elegant sedans or coupés, and obviously we care about that as well. That’s what we’re rooted in, and we are often seen as the benchmark – and for sure we want it to stay that way.”
The ‘i’ Stays, but It Means Something Different Now
BMW product boss Bernd Körber also weighed in, explaining that the company will continue to use the “i” badge for its EV models. According to Körber, the letter “i” started out representing several ideas, but one constant was electrification.
“Why the ‘i’? Because the i brand started out with more facets to it, but one element with the i3 and i8 was electrification,” he said. “So for us it’s a designator that we use to indicate within the common naming [strategy] that this is an electrified vehicle, with the ‘i’ in front of it. So we kept the ‘i’, put it in front and moved it from a kind of sub-brand to a model brand, and that will be the logic that we will follow from now on.”
The new BMW i3 is expected to launch with a rear-wheel-drive base model producing around 300 horsepower. All-wheel-drive versions will come later. BMW also plans to spin off an electric version of the M3, previewed earlier this year as the Vision Driving Experience concept, which will feature four electric motors for truly ridiculous performance.
The BMW Skytop will be followed by more limited-production models from the brand.
One of them will be a bespoke BMW M, designed as a halo model for enthusiasts.
This news follows reports about scrapped sports car and supercar development projects.
BMW seems to be on a mission to cash in on the growing appetite for ridiculously expensive, limited-edition cars with a new halo model aimed at its performance division. And, it seems BMW M is finally tuning in to the demands of fans, who have long been begging for a modern version of the M1, blending the exotic appeal of the past with a contemporary twist.
The news follows the announcement that the BMW Skytop concept from last year’s Concorso d’Eleganza Villa d’Este will soon enter production, with only 50 units expected and a rumored price tag of $500k. The success of this project has inspired BMW to roll out more similarly bespoke models, though this time, they’ll carry the M emblem.
A Future of Ultra-Limited Editions
Sylvia Neubauer, BMW M’s Vice President of customers, brand, and sales, shared some insight into the company’s future direction with AutoExpress: “BMW’s strategy is to have a series of small-series additions that we offer to the markets. There will be something coming at Villa d’Este this year, and probably some future small-series editions with the ‘M’ designation.”
When asked if this could include a bespoke BMW M model inspired by the original M1, Neubauer stated:
“Definitely, such halo cars clearly position the brand. They make it very, very desirable. They have that positive spillover effect on the brand and on the product portfolio. You’re making a certain customer group very, very happy with these dream cars. Even those that cannot afford the car admire the brand. This will be part of our future road map as well.”
A New M1, Sort of?
Several months ago, reports surfaced about BMW having worked on a spiritual successor to the M1, possibly with a plug-in hybrid powertrain. The I16 project was allegedly 95% ready when it was scrapped in favor of the controversial XM SUV. Other reports suggest that plans for a fully electric supercar were also cancelled after it reached the clay model stage.
While we still don’t know if the upcoming bespoke BMW M car will have any ties to these canceled projects, the sighting of the Neue Klasse EV Coupe in testing suggests something special could be on the horizon. If the camouflaged prototype’s dramatic design is paired with the performance capabilities of BMW’s next-gen electric powertrain, we might just be looking at a true M1 successor, albeit one with a very different powertrain under the hood.
Baldauf
Competing with Porsche?
Neubauer was also asked whether the new model could compete with the Porsche 911, to which she replied: “That market obviously is an interesting market. But we also know that Porsche customers are very, very loyal to their brand. So if we do it, we definitely need to do it spot on—100 percent.”
This doesn’t exactly provide a definitive answer about the car’s design or character, but Neubauer did confirm that BMW M is “internally” working on a “dream car.” When asked about its launch timing, Neubauer added, “Let’s wait for the right time.”
With all these pieces falling into place, it’s clear that BMW M has something big on the way. Whether it’s an M1 revival, a fully electric supercar, or something else entirely, one thing is for sure: The wait will likely be worth it.
BMW will not leave the small car segment when it comes time to replace the current 1 Series.
The next-generation 1 Series is expected to arrive in 2028 and may share its platform with Mini.
The new 1 Series will likely be offered as an “i1” EV in addition to gas-powered models.
BMW’s first attempt at cracking the small electric car market with the i3 was one of those things that people either loved or loathed. You were either on board with the i3’s groundbreaking tech and its lounge-like interior, or you found its oddball proportions and head-scratching market placement completely off-putting. Either way, it looks like BMW is ready to revisit the small EV space, but not without taking a little time to pause and reflect first.
The i3 went out of production in 2023, with no direct replacement to cater to the small EV buyer. Meanwhile, there had been predictions that BMW could follow the path of its rivals and leave the small car segment altogether. However, according to Bernd Koerber, Senior Vice President of BMW’s Brand and Product Management, the Bavarian company plans to keep the 1-Series around, with a new generation likely to surface in 2028.
i3 Becomes the i1?
The original i3 was as much of a production car as it was a bit of a market experiment — and as such, its naming convention would be quite confusing in today’s electric BMW nomenclature. In fact, the i3 name will soon be assigned to the electric versions of the eighth-generation 3 Series.
So, where does that leave the next small EV? Well, the all-new compact EV is expected to be paired with the next-generation 1 Series, with both models likely to launch simultaneously, featuring styling and platforms influenced by the company’s Neue Klasse design direction.
Speaking to AutoExpress, Koeber highlighted the importance for BMW to stick around. “Go to Greece, go to Spain, go to Italy – take out the 1 [Series] and that’s one-third of your business. So, if you’re a global player, you better do things in your home markets which are relevant.”
Koeber also related how having an entry-level model like the 1-Series has a greater impact on the brand as a whole. “It’s very important for the brand, because what you see in the 1 Series is you have the highest share of younger drivers.”
More Shared With Mini
BMW could opt to keep costs down by borrowing from the Neue Klasse platform, which offers the flexibility to provide different layouts and wheelbases. Another advantage for BMW is Mini, with the next generation 1 Series likely to share components with the sister brand.
Koeber, who also served as senior vice president for Mini until 2022, says that remaining in the small car sector will also force BMW into finding clever and cost-efficient solutions. These solutions can later be applied to larger models, with BMW keen to retain its competence in cost-effectiveness.
BMW has revealed a camo-free version of the Vision Driving Experience concept.
The performance-focused EV gains a luminescent paint and an UV-reactive film.
The “Heart of Joy” super brain will power all future BMW Neue Klasse EVs.
BMW has unveiled a new iteration of its Vision Driving Experience concept for the Shanghai Auto Show, and while it’s not officially an electric M3, it’s about as close as we’re going to get for now. The study, which hints at the future of performance EVs, has shed its camouflage wrap and revealed more of the design language that will define BMW’s Neue Klasse lineup.
The Vision Driving Experience was first introduced in February, but until now, it was hidden behind a rather uninspired camouflage livery. Now, BMW has taken the wraps off and gone for a “special luminescent paint.” The paint uses light-sensitive pigments that recharge in daylight and glow in the dark. To add to the visual drama, a special film on the rear bodywork creates a yellowish gradient under UV light.
A Glimpse of the Future (and Some Colorful Wheels)
Unsurprisingly, the electric M3—oops, I mean the Vision Driving Experience—shares a lot of design elements with the Vision Neue Klasse concept from 2023, albeit with beefed-up bumpers. Highlights include active aerodynamics, and yes, wheels that illuminate in different colors. These rims are practically a mood ring for your car: they turn green when you accelerate, blue when recovering energy, and orange when braking.
Test drivers Jens Klingmann and Elias Houndtonji took the wheel of the Vision Driving Experience during BMW’s Brand Night, showing off the car’s performance under the cover of darkness. They put the quad-motor powertrain and advanced torque-vectoring system to the test, showcasing the car’s handling on the move.
BMW
Torque Numbers That Raise Questions
Now, let’s talk torque. BMW claims the electric powertrain delivers a staggering 13,269 lb-ft (17,990 Nm) of torque. Yes, you read that correctly, but it’s almost certain that it measured at the wheels, not the crankshaft, because unless the laws of physics have been rewritten, that number is bonkers. Regardless, the “Heart of Joy” super brain controls pretty much everything, from driving dynamics to braking, energy recuperation, and steering.
BMW has made it clear that the Vision Driving Experience concept “was designed for development purposes only and is not intended for series production.” However, the Neue Klasse design will gradually make its way across BMW’s entire lineup, both electric and internal combustion. Likewise, the “Heart of Joy” super brain will be integrated into future EVs, including those from the BMW M division, so you can expect some of that high-tech wizardry to trickle down to future performance models.
New Models and the iX3
BMW has said it plans to launch over 40 new and updated models by 2027. The first of these, the fully electric iX3, will begin production at the Debrecen plant in Hungary by the end of 2025. This SUV will be followed by a sedan in 2026, which is expected to carry the i3 name and serve as an electric alternative to the BMW 3 Series. So, if you’ve been hoping for an electrified 3 Series, it looks like your wish is about to come true.
The electric sedan will likely look most similar to the original Vision Neue Klasse concept, with the BMW M version drawing heavy inspiration from the Vision Driving Experience seen here.
BMW has given us a taste of what our ears can expect from BMW’s Neue Klasse EVs.
HypersonX soundscape changes as the driver switches from Personal to Sport modes.
The brand says sounds contain fewer notes than previous EVs, but more depth and range.
The first of BMW’s Neue Klasse EVs drops this fall, and it’s not only the exterior styling, dashboard layout and electric platform that’s new. So is the soundtrack for this new generation of electric vehicles, and BMW has given us a glimpse of what kind of noises to expect when we eventually slide behind the wheel of the 2026 iX3 and 2027 i330 sedan.
This isn’t the first time BMW has created unique soundtracks for its EVs. It famously commissioned Hans Zimmer to come up with signature sounds for the i4 and i7. But the automaker claims the new HypersonX soundscape developed by BMW’s own Sound Design Studio is even more complex and nuanced.
Neue Klasse cars benefit from a new audio control unit that brings a greater dynamic range, BMW claiming that although the new soundscape uses fewer notes than older systems, it delivers more color and depth to give a more natural feel.
43 Layers of Motion
HypersonX has 43 different sound signals and driving sounds for the cars’ Personal Mode and Sport Mode settings and when the driver accelerates the car shifts through three-dimensional sound layers to create a sensation of speed.
The team didn’t only spend time working out how to make the EVs feel exciting at full throttle, but also how they sound when you first open the door and any time you’re inside. BMW says it drew inspiration from art, science, light and nature, and even used sounds created using a choir made of development team members.
“The unique sound spectrum of HypersonX plays a major role in giving a Neue Klasse model its own, highly distinctive character acoustically,” says Renzo Vitale, Creative Director of Sound Design BMW Group.
“Through our focus on precision, warmth, and lightness, we can create a direct emotional connection between the driver and their vehicle.”
The first production BMW to benefit from HypersonX is the iX3 SUV, the electric brother to the recently-facelifted X3, which is scheduled to make its debut this September.
Tesla retained market dominance but saw an 8.6% drop in its market share.
Rivian tumbled to ninth place overall, with a sharp 37.1% drop in Q1 sales.
Ford’s F-150 Lightning remained the top-selling electric truck despite a dip.
Americans bought more electric vehicles in the first quarter of 2025, but it’s not just enthusiasm for clean energy that’s pushing the numbers. Sales of EVs were up 11.4% year-over-year, with some of that bump likely driven by fears of disappearing federal tax credits and looming tariffs. Gas-powered cars even saw some love, as buyers rushed to lock in purchases before incentives or prices changed. Crisis buying: it’s not just for toilet paper anymore.
For context, the entire new vehicle market (regardless of powertrain) grew 4.3% in Q1 2024, totaling roughly 3.9 million units, according to Auto News. That puts EVs at 7.6% of the market, a noticeable increase from last year, and a sign that electric adoption, while still uneven, continues to inch forward, at least for now.
Brands: Tesla Still Leads, But It’s Not All Good News
You probably guessed it that Tesla still wears the EV crown. The company moved 128,100 vehicles in Q1, capturing a commanding 43.5% share of the EV market. That’s still dominant, but it’s down 8.6 percentage points from last year. Some of that slip can be chalked up to delays in rolling out the updated Model Y. The rest? Probably a mix of market competition and the ongoing Elon Effect, a combo of social media theatrics and questionable business decisions that make both investors and buyers twitch.
Ford continues to hold a firm grip on second place, selling 22,550 electric vehicles in Q1, an 11.5% increase over last year, giving it a 7.7% share of America’s EV market. But the real drama happened just below that. Rivian, which held the No. 3 spot last year, tumbled all the way down to ninth place after a steep 37.1% drop, totaling just 8,553 sales. Hyundai, previously in fourth, slid to No. 6 despite a modest 5.1% gain to 12,843 units. Its Kia sibling dropped from fifth to eighth, as sales fell 24.1% to 8,665.
Taking their places, Chevrolet surged into the No. 3 spot with 19,186 units sold, recording a 114.2% increase, while BMW climbed to No. 4 with 13,858 deliveries, up 26.4% from a year ago. There were other notable shifts as well: Porsche more than tripled its EV sales in Q1, thanks to the Macan Electric. On the flip side, Mercedes took the hardest hit, with sales plunging 58.3%, despite aggressive lease deals and major incentives, as many of our readers have pointed out. For all the numbers and surprises, check out the full brand breakdown below.
BEST SELLING EV BRANDS
Brand
Q1-25
Q1-24
YOY
Market Share
Tesla
128,100
140,187
-8.6%
43.5%
Ford
22,550
20,223
11.5%
7.7%
Chevrolet
19,186
8,957
114.2%
6.5%
BMW
13,538
10,712
26.4%
4.6%
Hyundai
12,843
12,218
5.1%
4.4%
VW
9,564
6,167
55.1%
3.3%
Honda
9,561
–
–
3.2%
Kia
8,656
11,401
-24.1%
2.9%
Rivian
8,553
13,588
-37.1%
2.9%
Cadillac
7,972
5,800
37.4%
2.7%
Nissan
6,471
5,284
22.5%
2.2%
Audi
5,905
5,714
3.3%
2.0%
Toyota
5,610
1,897
195.7%
1.9%
Acura
4,813
–
–
1.6%
GMC
4,728
1,668
183.5%
1.6%
Porsche
4,358
1,247
249.5%
1.5%
Mercedes
3,472
8,336
-58.3%
1.2%
Subaru
3,131
1,147
173.0%
1.1%
Volvo
2,718
996
172.9%
0.9%
Jeep
2,595
–
–
0.9%
Dodge
1,947
–
–
0.7%
Genesis
1,496
992
50.8%
0.5%
Lexus
1,453
1,603
-9.4%
0.5%
Mini
696
824
-15.5%
0.2%
Jaguar
381
256
48.8%
0.1%
Other EVs
5,930
6,764
-12.3%
2.0%
Total (Estimates)
296,227
265,981
11.40%
100%
Cox Auto / KBB
SWIPE
Models: The Y Slips But The 3 Soars
Looking at individual models, the Tesla Model Y still tops the US EV sales chart, but its grip on the lead has loosened. It delivered 64,051 units in Q1, marking a steep 33.8% decline from last year. The delayed launch of the standard facelifted “Juniper” version didn’t help matters, as only the pricier Launch Edition was available early in the quarter. We’ll see how the new Juniper performs once the entire range goes on sale.
On the flip side, the Model 3 is having its moment. It saw a huge 70.3% increase in sales, hitting 52,520 units in Q1. For perspective, that’s nearly as many as the next three brands (Ford, Chevrolet, and BMW) sold combined, at 55,274. Tesla’s aggressive sales strategy likely played a role, with improved lease offers and zero-percent financing, though that conveniently wrapped up in April.
The Ford Mustang Mach-E maintained third place among EV models with 11,607 units sold, a significant 21% increase, helped along by solid discounts and lease incentives. Rounding out the top five were the Chevy Equinox EV (10,329 units), the Honda Prologue (9,561), and the Hyundai Ioniq 5, which saw 8,611 deliveries, a 26.2% jump.
Trucks: F-150 Still Rules But Cybertruck Catching Up
As for electric trucks, the Ford F-150 Lightning remains the best-seller, even though deliveries dropped 7.2% compared to the same period in 2024. Tesla’s Cybertruck, love it or hate it (and many do), is at least moving the needle upwards, with 6,406 units sold, up 128.5% over last year’s laughably small starting numbers.
GMC doesn’t separate sales by body style, but Rivian does, and its R1T pickup moved just 1,727 units this quarter, a massive 47% drop from Q1 2023. For all the flak the Cybertruck catches online, it’s still outselling the R1T by a wide margin. No, it’s not the million-unit-a-year miracle Elon once promised, but it’s still finding more buyers than the R1T and that should be sounding alarms in Rivian’s executive suite.
The rear end of BMW’s Vision Driving Experience concept has received widespread criticism online.
The EV concept features four electric motors, promising impressive performance but divisive styling.
Back in February, BMW pulled the curtain back on its all-electric Vision Driving Experience study, giving us a conceptual peek at what’s coming with the first M-branded Neu Klasse EV. The German brand’s design direction has faced its fair share of criticism in recent years, and while they’re trying to embrace a fresh new look, it seems not everyone is onboard with their latest vision.
Earlier this week, BMW published images of the Vision Driving Experience on its Instagram page, and the reception has not been all positive. A look through the comments shows that people have taken particular issue with the rear-end design of the EV, and we can’t blame them.
We think BMW has done a nice job with the front-end design of its Neue Klasse concepts, ditching the hideous kidney grilles found on several existing models in favor of slimmer grilles that are joined seamlessly with the sharp LED headlights. However, the rear is a different story.
While the front of the concept sits quite low, as a sports sedan should, the rear end is much more upright and sits far higher than it needs to. The taillights are also positioned at the very top of the tailgate and look out of place.
People haven’t held back in voicing their opinion. “What the hell is this rear view,” one comment with over 6,500 likes reads. “Y’all need to fire your designer,” a user says, while another with over 3,000 likes says, “Tf are those rear lights.”
One comment is a meme showing a large pile of excrement, while another says, “I will pay you a billion pounds not to make this.” A popular fitness influencer with 2.7 million followers also left a comment, saying “Front is smooth but what the *** is that rear.”
Since the piece went live, there have been a few positive comments sprinkled in, but they’re pretty much an afterthought, with likes numbering in the single digits. Safe to say, most people aren’t exactly lining up to praise this design.
So, what do you think – does BMW need to go back to the drawing board, or are we just nitpicking? In any case, at this point, the concept‘s rear end might be the least of the brand’s worries when it comes to public opinion.
A loaded BMW i5 eDrive40 sold for just $46,250 with only 714 miles on the clock.
Original MSRP of this i5 was $77,695, including several premium option packages.
Depreciation hit hard, with the electric sedan losing $31,445 in just a few months.
Depreciation comes with the territory when it comes to EVs and luxury German cars—everyone knows that. Still, even seasoned car watchers might do a double take at how quickly some of these high-end electrics shed value. Take this 2024 BMW i5 eDrive40, for example. It’s already lost a staggering $31,445, despite having just 714 miles (1,149 km) on the clock. We’re talking about a car that’s barely broken in.
The i5 was recently auctioned off on Cars & Bids where it traded hands for $46,250. That’s an absolute steal for an all-electric German sedan of this quality and way less than the original price tag of $77,695. While we feel a little bad for the original owner, the winning bidder seems to have gotten an excellent deal. However, it’s certainly possible that it’ll continue to depreciate at a rapid rate.
This version of the i5 is the eDrive40, the base model in BMW’s electric 5-Series lineup. It’s equipped with an 81 kWh battery that powers a single electric motor, delivering 335 horsepower and 317 lb-ft of torque. According to BMW, that setup should get you around 295 miles of range on a full charge when paired with the optional 20-inch wheels, as seen here. Despite its entry-level status, the eDrive40 still does 0–60 mph in a very respectable 5.7 seconds. And that’s without a rollout for our Tesla readers.
Packed With Options
This particular i5 isn’t just a barebones base model either. The window sticker reveals that this car is fitted with the M Sport Package, M Sport Package Pro, and Premium Package, which add features like a heated steering wheel, interior camera, LED cornering lights, and a head-up display. It also has the Driving Assistance Pro Package and Connected Package Pro, adding real-time traffic updates, BMW remote services, and on-street parking information.
An EV Bargain?
As the car has barely been driven at just over 700 miles, it’s in excellent shape. The only visible flaws are a few minor scratches on the trunk lid—easily fixable with a bit of buffing. Otherwise, it’s practically new.
Aesthetics are subjective, but let’s just say we’re not in love with the styling of the current i5 or its gas-powered 5-Series siblings. Still, that might be easier to overlook when the price is slashed by over 40 percent. So here’s the real question: would you spend $46,000 like this buyer on an almost-new electric BMW with all the bells and whistles, even if it might keep shedding value?
BMW partners with Alibaba to bring advanced AI agents to its Chinese-market EVs.
Qwen AI will power the infotainment system with conversational voice-driven features.
Neue Klasse models will debut AI-powered Car Genius and Travel Companion in 2026.
With Chinese tech companies such as Huawei and Xiaomi making their foray into the automotive industry, legacy carmakers risk being left behind in what is quickly becoming a tech war. A market as large as China, which sees sales of EVs hitting over a million units per month, needs special attention. This is why BMW has teamed up with Chinese e-commerce giant Alibaba in a quest to integrate AI into future models.
Alibaba may be best known for its online shopping empire, but like many tech giants, it has its fingers in many pies. One of these is AI, with the company doubling down on its ambitions. Alibaba’s Large Language Model (LLM) is known as Qwen, and the company has committed more than $50 billion to the platform over the next three years.
The first models to hit the Chinese market with the new tech will be the Neue Klasse series, set to roll out in 2026.
China’s Tailor-made AI Solution
Qwen is already available on models offered by some Chinese automakers, including Zeekr and Leapmotor. However, the partnership with BMW is a huge step for the platform, adding a global brand to its list.
BMW will be getting two AI agents, Car Genius and Travel Companion, to lead the charge inside the cabin. It’ll bring Alibaba-backed Banma’s Yan AI technology (based on Qwen) into BMW’s Intelligent Personal Assistant (IPA). This smart cockpit solution will enable more humanlike interaction, complex command handling, and seamless integration with digital ecosystems.
The aim will be to deliver an intuitive, AI-enhanced driving experience tailored specifically for Chinese customers. Bloomberg reports that the Car Genius will offer real-time vehicle assistance, while the Travel Companion will provide lifestyle services, intelligent trip planning, and even suggest restaurants based on user preferences, live traffic, and parking data. BMW says this will set a new benchmark in user-centric mobility.
China Matters
China is a critical market for any automaker, but with increased competition from domestic brands, companies like BMW can’t afford to play catch-up. That’s why partnering with Alibaba could be seen as a smart move, with the Bavarian manufacturer getting in on the ground level.
It’s a move that needs to pay off, too. Chinese sales of BMW and MINI brands declined by 13.4 percent in 2024, and this year’s projections don’t look great either. By investing in localized AI integration, BMW is not only hoping to boost its brand appeal but also close the gap with faster-moving domestic players.
For the automotive industry, especially in China, this partnership underscores a bigger shift. Software has become the defining factor in EV competitiveness. Local brands like BYD and Xpeng have surged ahead in the AI race, prompting legacy automakers to seek tech alliances to stay relevant. BMW’s collaboration with Alibaba is a direct response to these market dynamics.
The deal also highlights the growing dependency of European automakers on China for digital capabilities. As Mercedes-Benz’s Georges Massing recently admitted, Europe lacks the cloud and compute infrastructure necessary to train large AI models at scale, leaving traditional OEMs increasingly reliant on partners like Alibaba to deliver cutting-edge cockpit experiences.
In a market where innovation cycles are measured in months, not years, BMW’s tie-up with Alibaba might be the thing that makes a difference. As AI becomes a central battleground for automotive differentiation, those who can integrate it deeply and meaningfully into the driver experience stand to lead the next era of mobility.
With the Neue Klasse set to roll out from 2026 and Qwen-powered agents embedded in its DNA, BMW is betting big that its future in China will be written in code.
BMW’s 2028 electric M3 sedan has been spied testing at Germany’s Nurburgring.
Neue Klasse platform could have four motors, making 700 hp with potential for more.
BMW isn’t killing the ICE M3; today’s car will be updated and sold alongside the EV.
Automakers take all kinds of prototypes to the Nurburgring, including SUVs and minivans, because the 12.8-mile (20.6 km) track is as useful for testing a car’s endurance and its handling balance. But some cars absolutely need to work at the Ring because their reputation depends on it, and the 2028 BMW M3 EV is one of them.
The M3 going electric is a big deal, the biggest since BMW replaced the original lightweight four-cylinder homologation special E30 for the fatter, six-cylinder E36 that seemed more like a GT car in comparison. M bosses know the M3 EV will be scrutinized like no M car before it, putting M’s credibility on the line.
We’ll have to wait until next year at the earliest to know for sure how good or bad the electric M3 is, but things are looking positive so far. For one, the EV rides on BMW’s Neue Klasse architecture, which debuts on the iX3 SUV later this year and will be rolled out to the 3-series in 2027 and the M3 a year later.
The M3 could also get a four-motor electric drivetrain with up to 700 hp (710 PS), an output that’s way down on both the 1,341+ hp (1,360 PS / 1,000 kW) BMW previously claimed its could squeeze from a future performance EV, never mind the 1,527 hp (1,547 hp / 1,138 kW) of Xiaomi’s record-breaking SU7 Ultra.
However, it’s probably going to feel ample just about everywhere except the looong final straight on the Ring, where you can never have too much power. A Hyundai Ioniq 5 N only has 641 hp (650 PS / 478 kW), and I never climb out of one of those feeling shortchanged.
And with torque vectoring capabilities and a new central control unit keeping the motors and chassis in sync, it might end up being one of the most fun EVs on sale, regardless of price and power. Mind you, it’s going to have some stiff competition in that regard from Alpine’s next A110 and the upcoming Porsche Cayman EV.
Disgusted that BMW is taking the M3 down the electric route? Don’t worry, the ICE M3 isn’t going anywhere, at least not for a while. Today’s CLAR-platform car will be made over with Neue Klasse styling to closely resemble the EV, and its inline six will gain mild-hybrid assistance to boost mpg and push power beyond the 543 hp (550 PS) of the current M3 daddy, the CS. Both will wear simple M3 badges, despite BMW having trademarked the iM3 name.
Currently, Xiaomi sells its EVs solely in China, but it plans to expand globally.
Key hires include Rudolf Dittrich, who has worked at BMW and two F1 teams.
The brand says it’s “in the process of planning” its European R&D facility.
Xiaomi is determined to become a major global player in the EV industry and to make this happen, it’s recruiting experienced talent from other brands, including at least five senior executives from BMW. They will work at the brand’s research and development center in Europe, although an exact location for this site has yet to be announced.
A search through LinkedIn reveals that Xiaomi hired Rudolf Dittrich from BMW last year to serve as the head of its European R&D center. Dittrich has worked at the German premium automaker for 15 years and also has experience at the Williams and Sauber Formula 1 teams. Additionally, Dusan Sarac has joined Xiaomi’s European operations after several years at BMW and Rolls-Royce.
Reutersunderstands that Jannis Hellwig has also jumped ship to the Chinese EV brand and will serve as a senior engineer on performance development and integration. The technology giant is also looking for a senior automotive designer, senior automotive exterior designer, and vehicle dynamics engineers in Munich, Germany.
There’s no word on where the technology giant’s European R&D facility will be located, with the brand simply saying the site is “in the process of planning.”
It’s not just talent that Xiaomi is snatching from the Germans. It wants to sell 350,000 EVs in China this year, and if it can hit that target, it will surpass the combined 2024 EV sales of Volkswagen, Audi, BMW, Mercedes-Benz, and Porsche. That would be quite a feat for the company, particularly since it only started building the electric SU7 sedan this time last year.
Now, with the hypercar-rivaling SU7 Ultra on the market, Xiaomi appears to be going from strength to strength. Moreover, 2025 is expected to be a pivotal year for the firm as it’ll start production and deliveries of the YU7. The new electric SUV undercuts the Tesla Model Y and, given the global demand for high-riding vehicles, should sell in far greater numbers than the SU7 sedan.
Xiaomi is targeting 350,000 EV sales in China, outpacing major German automakers.
With attractive designs and generous equipment, the SU7 and YU7 have proved popular.
The company announced plans to sell its vehicles globally within the next few years.
Not long ago, premium German cars were seen as the epitome of luxury in China. For brands like Mercedes-Benz and Porsche, China was consistently their largest market, with sales surpassing those in any other country. However, as new homegrown brands have emerged, local preferences are beginning to shift toward Chinese companies and their offerings. Xiaomi is a perfect example of this shift.
Xiaomi, primarily known for being one China’s largest makers of electronics and consumer goods, producing everything from vacuum cleaners to computer monitors, fridges, suitcases, and smartphones. Then, the brand’s boss decided he wanted to build an electric vehicle. Unlike the billionaire founder of Dyson, who famously failed to launch an EV, Xiaomi has succeeded where others couldn’t, with its first electric vehicle, the SU7.
Customer deliveries of the SU7 started less than a year ago, and the company already has its sights set on the German establishment. The company aims to sell 350,000 EVs in China this year, thanks to the SU7 and the upcoming release of its Tesla Model Y competitor, the YU7. If Xiaomi can hit this target, it would surpass the combined EV sales of Volkswagen, Audi, BMW, Mercedes-Benz, and Porsche in China from last year, Handelsblatt reports.
Expanding Beyond China
It’s not just at home in China, where Xiaomi wants to grow its EV business. Earlier this month, the company’s president William Lu, revealed plans to expand into more markets. While he didn’t specify exact dates, he assured that Xiaomi would enter new regions “within the next few years.”
The arrival of the YU7 will mark a pivotal moment for the company. SUVs continue to dominate global sales, and there’s a strong chance the YU7 will outperform the SU7. Deliveries are set to begin in June or July, and the industry will be watching closely to see if Xiaomi can continue its rise.
BMW’s Neue Klasse vehicles will get four superbrains, starting with the new iX3 electric SUV.
The superbrains control drive and feel, autonomous driving, infotainment, and other functions.
Smart e-fuses replace traditional fuses to improve power distribution and increase efficiency.
Last month, BMW introduced the Neue Klasse Vision vehicle to us — a preview of what to expect tech-wise from the German brand’s upcoming range of new-generation EVs. One of the headlining features of the Vision vehicle’s tech was the “Heart of Joy” superbrain that controlled how its future EVs drive and feel.
Fast forward to now, and BMW has unveiled three additional control units for the upcoming iX3, which was confirmed today for a September debut. These will all be part of a whole new “digital nervous system” set to power every Neue Klasse model. Along with the Heart of Joy, one superbrain will be dedicated to autonomous driving, another will manage BMW’s Panoramic iDrive (aka, infotainment), and a third will manage the remaining ancillary functions, such as lighting and climate control.
To make this happen, BMW has crammed an insanely powerful central computing system into their next-gen cars, claiming it’s 20 times more powerful than what’s in their current lineup. They’ve also put considerable thought into the wiring that connects these digital masterminds.
Enter their “zonal wiring harness architecture”, essentially a fancy way of saying they’ve simplified the car’s internal wiring by dividing it into four zones: front, center, rear, and roof. The result? A reduction of 600 meters of wiring and a 30% savings in weight. Less bulk, more efficiency.
Smarter Power Management
In addition to beefed-up computing, BMW is also replacing 150 traditional fuses with something called digital ‘smart e-fuses.’ These aren’t just fancy circuit breakers; they actively manage power distribution to improve energy use by 20%. In other words, your BMW will be smarter about when and where it uses power — whether it’s driving, parked, or charging. Welcome to the world of intelligent energy management.
On top of that, BMW is going all-in on over-the-air software updates. With more than 1,000 software modules, 20GB of software, and a staggering 500 million lines of code, future BMWs will essentially be software-defined vehicles. That means no more waiting for the dealership to install the latest updates; your car will simply upgrade itself.
Looking ahead, BMW’s long-term strategy is to keep developing in-house where it matters — like driving dynamics and infotainment — but partner with top-tier software companies for less brand-defining tech. They’ve also built an in-house software development powerhouse with over 10,000 engineers, ensuring they stay ahead of the game.
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