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.

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

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.

More: 2026 BMW iX3 Neue Klasse Renders Patents Into Reality

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.

Neue Klasse, First of Many

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.

John Halas contributed to this story.

SH Proshots

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.

Related: BMW Confirms iX3 Debut In September, Will Launch Over 40 New Models By 2027

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.

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.

Read: Want A Ferrari 458 Shell? Alibaba Has One For $28,000

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.

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.