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 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.”

More: BMW Vision Vehicle Is Our Best Look Yet At The iM3 Neue Klasse

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.

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.

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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.

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