BMW Warns of Industry Shakeout, Bets on Neue Klasse EV Lineup

BMW CEO Oliver Zipse has cautioned that automakers face a “selection process” in the coming years as the industry shifts toward electrification.

Speaking to Spiegel news magazine, Zipse said mistakes could be costly, emphasizing the importance of BMW’s Neue Klasse EV program. The German automaker will showcase its first model under the fully electric Neue Klasse lineup at the Munich car show next week. The BMW iX3 will be the first model in the series.

Neue Klasse aims to secure BMW’s EV future

Zipse explained that BMW’s decision to overhaul its portfolio five years ago was designed to keep pace with industry leaders like Tesla. The Neue Klasse EV family represents a multi-billion-euro bet, with analysts warning BMW cannot afford failure given its scale compared to larger rivals. The first Neue Klasse model, the iX3, is being positioned as both a showcase of BMW engineering and a critical step in securing long-term competitiveness.

The upcoming iX3 has been developed with a sustainability-first approach, featuring supply chain decarbonization and up to 20% improved efficiency over its predecessor. Production will take place in Debrecen, Hungary, BMW’s first plant designed to operate without fossil fuels.

Milestones in electrification and iX3 sustainability

BMW recently marked a major milestone, delivering its three millionth electrified vehicle, a 330e plug-in hybrid, built at its Munich plant. Electrified cars accounted for over a quarter of BMW’s sales in the first half of 2025.

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