BMW Explains Why It Will Retire Some Existing EVs Sooner Than Planned

Article Summary

• BMW has significantly increased Gen6 production this year to keep up with customer demand.
• The company hasn't revealed which current-gen EVs will get the axe ahead of schedule, but we've identified three potential models.
• Neue Klasse models bring better profit margins, giving BMW another incentive to speed up the transition.

BMW’s next-generation EVs are proving popular enough that the company is reconsidering how long it will keep some of its current electric models around. As Neue Klasse gains momentum, Munich apparently sees little reason to keep building yesterday’s EVs when buyers increasingly want tomorrow’s technology.

CEO Milan Nedeljković announced this in an official statement released today alongside the company’s third-quarter results. BMW has greatly accelerated the production ramp-up of its Gen6 electric vehicles this year due to high demand, allowing it to retire selected Gen5-powered models earlier than originally scheduled.

“We have significantly increased the ramp-up of the Gen6 models this year. This will allow us to phase out some Gen5 BEVs sooner than planned.”

Which BMW EVs Will Get The Axe?

BMW hasn’t identified the affected electric vehicles, but we can make some reasonable assumptions. Company officials have already suggested that the new i3 is essentially a replacement for the i4, which could bow out in 2027. Also next year, the current iX1 is likely to make way for a completely different namesake model based on a rear-wheel-drive platform with cylindrical battery cells. Looking further ahead, the iX is expected to bow out in 2028, by which time the iX7 will already have gone on sale.

The decision signals a faster transition to Neue Klasse technology. It suggests BMW sees little reason to keep investing in outgoing electric platforms when demand for their successors is already strong. The company is also making the transition for financial reasons. Nedeljković pointed out that the newer Gen6 products deliver better margins, meaning the accelerated rollout should help improve profitability as BMW modernizes its lineup.

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BMW Is Ramping Up Neue Klasse Production

The first Neue Klasse production model, the new iX3, has already given BMW plenty of reasons to be optimistic. With over 100,000 orders and 50,000 vehicles built within a year since launch, it’s off to a strong start. Demand has been high enough for the company to expand operations at its Debrecen plant in Hungary to three shifts. The factory will also build the iX4 alongside the electric SUV.

BMW is spreading Gen6 production across several locations. Manufacturing is already underway in Debrecen (iX3, iX4), Munich (i3), Dingolfing (i7), Spartanburg (iX5), and Shenyang (long-wheelbase iX3). The company also opened its new battery plant in Irlbach-Straßkirchen in October to supply German factories, while its Gen6 facility in Shenyang recently began operations. Series production in Woodruff, South Carolina, is scheduled to start before the end of 2026, followed by San Luis Potosí, Mexico, next year.

This expanding production footprint should give BMW the flexibility to bring more Neue Klasse derivatives to market without running into manufacturing constraints. The automaker has also promised to introduce new derivatives every quarter, with the rollout scheduled to continue through the end of 2027.

The BMW i1 Is Coming Soon

The company’s CEO also reiterated plans for an entry-level compact EV coming to Europe in 2028. Although he didn’t reveal the model’s identity, he was likely alluding to something different from the iX1 we already mentioned. BMW will probably build an i1 five-door hatchback on the same underpinnings as the next-generation electric crossover.

All told, it’s an interesting reversal of the usual product cycle. Rather than keeping older models around for as long as possible, BMW is willing to shorten their lifespans because their replacements are arriving with stronger demand and better profit margins. If Neue Klasse keeps gaining momentum, some current-generation electric BMWs might not get the lengthy production runs originally envisioned.

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