BMW has started building its new all-electric i3 saloon at its Munich plant, which has been operating since 1916.
The reborn i3 is BMW’s second dedicated all-electric ‘Neue Klasse’ model, following the introduction of the second-generation iX3 SUV towards the end of last year.
Like the iX3, demand for what is ostensibly a fully electric 3 Series has exceeded expectations since order books opened in June 2026. While BMW has not stated how much i3 demand has increased, it confirmed that there will be a “steep ramp-up curve at the [Munich] plant”.
Demand for the iX3 has also exceeded initial expectations. BMW’s Debrecen plant in Hungary, where the award-winning SUV is manufactured, was forced to introduce a second production run earlier this year as it homes in on 100,000 orders. It has already produced 50,000 units since production began in late 2025.
The BMW Munich plant is also home to BMW’s HQ and has built the 3 Series following its debut in 1975. Since then, over nine million of the firm’s D-segment executive saloon have rolled off its production lines.
Yet as BMW seeks to have electric-only models make up 50% of all global sales by 2030, the century-old factory has undergone a fundamental transformation. The site now features a new body shop, a new vehicle assembly hall, new logistics areas, and a delivery hall, which is still in the commissioning phase.
By centralising production of the i3 under one roof and adopting non-disclosed automated manufacturing processes, BMW claims it is “lowering manufacturing costs at Plant Munich by another 10%”.
The cost-cutting measures have, in part, been achieved by BMW’s “local for local” manufacturing approach. The firm’s new site in Irlbach-Straßkirchen, 90 minutes away from the Munich factory, is responsible for manufacturing the i3’s batteries.
A short ride across the border in Austria, BMW’s Steyr plant is responsible for producing the i3 and the iX3’s Gen6 eDrive electric motors. Unlike previously, the units do not use any rare-earth materials in their make-up, and are compatible with the Neue Klasse line’s 800-volt electrical architecture. According to BMW, the Gen6 eDrive motors cut energy losses by more than 20% compared to their predecessors, are 10% lighter, and reduce production costs by 20%.
From 2027 onwards, BMW’s Munich factory will focus exclusively on electric-only models. Currently, BMW’s EV line-up comprises the iX1, iX2 i3, iX3, i5, and i7. The Volvo EX90-rivalling iX5 will arrive later this year alongside the first all-electric M3.
