BMW considering a model above the X7 and confirms a 2028 Neue Klasse electric model for Europe

What BMW announced at Capital Market Day

BMW used its Capital Market Day 2026 in Munich to outline a more regionally focused product strategy, with the group saying it will align its model line-up more systematically with the differing preferences of its three key markets: Europe, China and the United States. The announcement was detailed in BMW's own press release, published on 30 September 2026. ²

Two specific product commitments stood out at the top and bottom of the range. For the US, BMW says it is considering introducing an additional offering above its current top-end model, the X7, closely tailored to American buyer needs. For Europe, it confirmed a new fully electric model in the high-volume entry segment will arrive in 2028, built on the Neue Klasse technology stack. As CarExpert's Derek Fung observed of the announcement, the wording on the US model leaves open whether it would be larger than the X7, a coupe-styled variant, or a more luxurious derivative. ²¹

A new model above the X7 - possibilities, not a confirmed car

BMW's official language is cautious: the group is 'considering' an additional Sports Activity Vehicle above the X7, with no name, dimensions, powertrain or launch date announced. The stated rationale is demand: BMW says Plant Spartanburg in South Carolina, the home of its X models, is operating at full capacity, and greater regionalisation of production would let it expand global output of these vehicles and serve each sales region more directly. ²⁵

The demand backdrop is strong. Carscoops reports BMW sold a record 388,897 vehicles in the United States last year, up 4.7 per cent on the previous year and the third consecutive record year, and says BMW cites that SUV demand as the reason for studying a new flagship. Carscoops also notes the X8 name has circulated for nearly a decade without appearing in showrooms. ⁴

CarExpert's analysis of the announcement identifies three plausible interpretations: an even larger SUV potentially wearing the X9 name; a coupe-styled X7 that could take the X8 badge; or a more luxurious, Maybach-style derivative of the existing X7. Carscoops makes a similar observation, noting the press release says the model could sit above the X7 without expressly stating it would be bigger. ¹⁴

There is competitive context for the move. Motor Illustrated notes Audi's new Q9 measures 5,310mm long on a 3,140mm wheelbase, against 5,181mm and 3,105mm for the current X7, meaning Audi's flagship already sits above BMW's top-end SAV on size alone. Motor Illustrated also reports a next-generation X7, due from Spartanburg in 2027, is expected to add that nameplate's first electric version, though it says BMW has not named a powertrain for the model under consideration. ⁵

The 2028 electric 1 Series

The European commitment is firmer. BMW's press release states the group will strengthen its presence in the high-volume entry segment in 2028 with another fully electric model from the Neue Klasse, extending technologies already rolled out at the core of the brand and in the X5 and 7 Series to compact models. BMW has not confirmed the model's name, but Autotrader reports it is expected to become an electric counterpart to the next-generation 1 Series, launching alongside the fifth-generation 1 Series in 2028. ²³

CarExpert reports the car is widely expected to be an electric i1 hatch, and notes that while high-performance Neue Klasse variants use dual-motor all-wheel drive, base models are rear-wheel drive - meaning the i1 would return the 1 Series to its rear-wheel-drive roots for the first time since 2019. According to CarExpert, the accompanying combustion 1 Series is expected to continue sharing a front-wheel-drive architecture with Mini's petrol and diesel cars, with the two cars sharing styling cues while being only distantly related, mirroring the approach of the electric i3 and new 3 Series. ¹³

The new model also serves a regulatory purpose. BMW says that, combined with its fully electric Mini range, the compact EV will help continue reducing its fleet-wide CO2 emissions in the EU. BMW adds that more than 100,000 new orders for the iX3 in Europe and strong customer interest in the new i3 and X5 support its confidence in the Neue Klasse line-up. ²

Portfolio pruning and the Alpina revival

Not every model survives the review. BMW says the number of variants across its portfolio will be examined and reduced, and confirms there will be no successor to the 2 Series Active Tourer. Reuters, in a factbox on the strategy update, lists the Active Tourer's discontinuation among the headline portfolio changes. ²⁷

At the luxury end, BMW says the first model of the Alpina brand developed under its ownership will be brought to market in the coming year. Inspired by the 7 Series, it is intended to expand BMW's presence in the segment between BMW and Rolls-Royce. CarExpert reports little else is known about the car beyond that positioning, and dates the unveiling to 2027. ²¹

Restructuring, China and the financial backdrop

The strategy update goes beyond products into BMW's own structure. BMW says it will reduce the number of divisions and associated management roles by 20 per cent by the middle of 2027, with a comparable reduction at the organisational levels below, alongside a voluntary severance programme agreed with its Works Council in July. Reuters, in its factbox on the update, lists the 20 per cent cut to divisions and management roles among the headline organisational measures. ²⁷

In China, BMW says it will expand local production in high-volume segments with Neue Klasse models while limiting imports to vehicles with the highest margins, and aims for at least 95 per cent of locally manufactured vehicles sold there to be tailored to Chinese customer preferences by 2030. Reuters notes the current level is just under 90 per cent. BMW is also considering exporting Chinese-built cars to Southeast Asian markets, though no candidates were named. According to CarExpert, the BMW Brilliance joint venture currently builds the X1, iX1, X3, X5, short- and long-wheelbase 3 Series, long-wheelbase 5 Series and i5, with Neue Klasse production there beginning later this year with the long-wheelbase i3. ²⁷¹

The product moves sit within a broader turnaround plan. BMW says it aims to return to its long-term automotive EBIT margin target of 8-10 per cent by the start of the next decade, with an interim expectation of 3-5 per cent in 2028 and automotive free cash flow rising to at least 7 billion euros. Reuters reports these targets against a backdrop of three profit warnings in just over three years linked to weak performance in China, a margin of 2.3 per cent most recently, and a redundancy programme expected to affect about 8,000 jobs in Germany. Reuters also notes BMW separately announced an investment of about €2 billion in German production of its next-generation 3 Series, and quotes Bernstein analyst Stephen Reitman saying the Neue Klasse range, led by the electric iX3, is central to the recovery plan. ²⁶

Beyond the product plans, BMW's press release also flags a European agency sales model for the core brand from mid-2027, following MINI's rollout across 24 European markets, and a new Level 2++ driver-assistance system developed with Momenta for China and a navigation-guided system with Qualcomm in Germany under the DCAS regulation from 2027, with other countries including the US to follow in stages. ²

What remains unknown

BMW has not confirmed a name, size, powertrain or timing for the above-X7 model, and the name and exact positioning of the 2028 compact EV remain officially unannounced. Reporting by Autotrader and CarExpert indicates those details are expected to firm up as the fifth-generation 1 Series programme progresses toward its 2028 launch window. ²³¹