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BMW Confirms Mass-Market Neue Klasse EV for 2028

The entry-level electric hatchback, likely badged as the i1, is designed specifically for the European market.

BMW has confirmed that a mass-market electric vehicle based on its Neue Klasse platform will arrive in 2028. The entry-level EV, expected to be a compact hatchback, is part of the automaker’s broader strategy to improve margins and expand its electric lineup beyond the iX3 and i3.

What Happened

The new model, internally known as the “NB0,” is expected to carry the i1 badge, though the name has not been officially confirmed. It will debut in Europe, positioning itself between the battery-powered Mini Cooper and the upcoming BMW iX1 crossover. While technical specifications remain unannounced, the vehicle is expected to feature a rear-wheel-drive setup similar to previous 1 Series generations, with dual-motor configurations also considered possible. Due to its smaller body and shorter wheelbase compared to the i3, the i1 is projected to have a smaller battery capacity, which would result in lower weight and potentially reduced charging speeds compared to the i3’s 300–400 kilowatt capability.

Why It Matters

This launch highlights BMW’s divergent product strategies for Europe and North America. The i1 is explicitly designed for the European market, where demand for affordable electric hatchbacks remains strong. In contrast, BMW is studying a high-end gas-powered SUV for the American market to sit above the X7. Both initiatives are components of a larger plan to boost BMW’s margins to as much as 10% by the early 2030s. The company is also implementing workforce cuts and increasing the use of artificial intelligence to drive efficiency, signaling a shift toward more aggressive cost management alongside new product introductions.

The Bottom Line

BMW’s 2028 entry-level EV will serve the European market, while the U.S. will likely see a premium gas SUV instead. The move reflects a calculated effort to balance product expansion with margin improvement through operational efficiencies and targeted regional offerings.

Sources

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