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.

Related: This Is What BMW’s First Electric M3 Sounds Like

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.

Images: Baldauf

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.

Read: Xiaomi Aims To Sell More EVs In China Than All German Brands Combined

Reuters understands 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.

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.

Read: Why Xiaomi Succeeded In Becoming An Automaker While Apple Failed

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.

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.

See: 2026 BMW iX3 Neue Klasse Renders Patents Into Reality

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.

BMW Group’s annual conference for 2025 brought some interesting updates about the company’s future lineup. The most notable announcement is that BMW officially confirmed the name of its first ever Neue Klasse SUV as the iX3 and that it will make its debut at the IAA Mobility in Munich in early September 2025. It will be the first model to ride on the company’s highly anticipated Neue Klasse architecture.

The company also announced that the fully electric SUV will be joined by over 40 new or facelifted models by 2027. These will have electric, plug-in hybrid, and combustion powertrains, benefiting from “Neue Klasse” DNA.

More: 2026 BMW iX3 Neue Klasse Renders Patents Into Reality

Oliver Zipse, BMW’s Chairman, called 2025 a “milestone year” for the company, despite the “volatile global conditions.” The rollout of the Neue Klasse project is a key factor behind this optimism, starting with the new generation iX3, which Zipse described as “a typical X model, and a BMW through and through.”

The production version of the Vision Neue Klasse X concept is now entering its final stages of development in South Africa, alongside a closely related electric sedan, which is expected to adopt the i3 nameplate. Pre-production prototypes of the iX3 have been rolling off the new Debrecen plant in Hungary since late last year. Though the bodywork remains under camouflage, patent drawings and renderings have already given us a glimpse of its design.

BMW Group

Series production of the BMW iX3 will begin in Debrecen in late 2025, following its global debut in Munich in early September. A new “sporty sedan,” also based on the Neue Klasse architecture, will follow in 2026, positioned as the fully electric counterpart to the BMW 3-Series. While its name has yet to be confirmed, it’s expected to be called the i3, following the naming convention established by the i5 / i7 and 7-Series / 5-Series.

Zipse noted that Neue Klasse models will introduce improvements in driving dynamics, drivetrain technology, battery advancements, operating concepts, and digitalization, while showcasing a new design language that has “skipped a generation.” He also confirmed that “regardless of the drive technology, all future BMW models will benefit from the technologies of the Neue Klasse—and, of course, from the new design language.”

More: BMW’s 800v Neue Klasse EVs Charge 30% Faster, Could Offer 500+ Miles Of Range

Among the highlights of the Neue Klasse models will be the BMW Panoramic iDrive interface with a customizable pillar-to-pillar display, the sixth-gen BMW eDrive powertrain and high-voltage batteries with 800-volt tech, and a brand-new electronics architecture with four high-performance computers controlling the vehicle’s functions.

In terms of performance and driving dynamics, Zipse mentioned the Vision Driving Experience prototype as a sign of things to come. He said that this is “the most powerful development prototype BMW has ever built”, adding that it “pushes driving dynamics to its physical limits”. The presentation included a video with enthusiastic reactions from BMW staff to test drives of the performance-focused prototype which will eventually spawn the hot flagship of the Neue Klasse sedan.

Big Investments Led To Lower Profits

In 2024, BMW reached “peak levels of R&D and capital expenditure”, largely due to the development of Neue Klasse models. This €18 billion ($19.6 billion) investment, in combination with the “persistent subdued demand in China” and issues with the “supplied Integrated Brake System (IBS)” hurt the automaker’s financial results. More specifically, BMW Group’s net profit in 2024 was reduced to €7.68 billion ($8.37 billion), marking a 36.9% decline compared to the previous year.

The BMW Group (comprising BMW, Mini, and Rolls-Royce) sold a total of 2,450,854 vehicles in 2024, 4% down compared to 2023. However, sales of electrified models increased to 593,150 units (+4.8%), including 426,536 BEVs (+13.5%). This means that BEVs accounted for 17.4% of the total sales volume of the group last year, up from 14.7% in 2023.

More: 2025 Kicks Off With A 30% Surge In Global EV And PHEV Sales

Looking ahead, Zipse expects BMW Group’s sales to rise in 2025, with a planned reduction in capital expenditure to boost cash flow. The company aims to maintain its profit levels from 2024, despite rising tariffs.

Below, you can watch the entire presentation that was broadcast live earlier today on YouTube.