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.

Read: BMW’s Next M3 Will Offer New Type Of Gas Engine And EV

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.

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.

More: BMW Scrapped A 95% Finished Supercar For The XM SUV

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.

More: Does BMW’s Electric M3 Concept Look Any Better Without Camo?

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 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.

More: BMW’s Electric M3 Concept Getting Roasted On Social Media

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.

More: BMW’s New EVs Come With 43 Layers Of Synthetic Vroom And Zero Shame

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.

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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