BMW Begins Building Its Tesla Model 3 Rival, and Munich Plant Goes All-Electric

BMW has started production of its all-electric i3 sedan in Germany, with the company calling it a serious challenger to the Tesla Model 3. But the bigger shift is at the factory itself: starting next year, BMW's Munich plant will produce only EVs, ending its long combustion-engine era that dates back to the 1950s.

To get there, BMW reworked the facility significantly, adding a new body shop, fresh assembly and logistics areas, and a new delivery hall. The automaker says these upgrades, along with new production methods and closer teamwork with suppliers, cut manufacturing costs at the plant by 10 percent.

Orders for the i3 opened in mid-June, and BMW reports demand has been strong enough to push a rapid production increase. The company hasn't shared daily output numbers, but it says i3 orders have already surpassed the new iX3, which pulled in over 50,000 orders in its first few months.

BMW board member Raymond Wittman called the i3's production start "a new era for our main plant," noting that the 3 Series and the Munich site both represent the brand deeply.

The i3 launches in 50 xDrive form with a 108.7 kWh battery and dual motors producing 463 hp and 476 lb-ft of torque. It hits 62 mph in 4.7 seconds and offers a WLTP range of up to 563 miles. With 800-volt tech and 400 kW fast charging, it can add 263 miles of range in just ten minutes.