BMW iX3 Neue Klasse electric crossover at auto show

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BMW Confirms Mexico Will Build Neue Klasse i3 and iX3 From 2027

BMW confirmed on July 24, 2026 that its San Luis Potosi plant will build the Neue Klasse i3 sedan and iX3 crossover starting in 2027, backed by an EUR 800 million expansion and a new Gen6 battery assembly center.

LookyLeasy Editorial·Global EV desk··Updated Jul 25, 2026·11 min read
BMW iX3 Neue Klasse electric crossover at auto show

Quick take

  • BMW confirmed July 24, 2026 that San Luis Potosi, Mexico will build the Neue Klasse i3 sedan and iX3 crossover from 2027.
  • The plant is expanding by more than 110,000 square meters as part of an EUR 800 million investment.
  • A new battery assembly center exceeding 80,000 square meters and EUR 500 million will build Gen6 packs locally.
  • San Luis Potosi is one of four Neue Klasse vehicle plants (with Debrecen, Munich, and Shenyang) and one of five Gen6 battery sites globally.
  • iX3 production in Mexico is expected around August 2027 per TechTimes; the i3 sedan follows after Munich's start, and Section 232 currently applies a 25 percent US tariff to Mexico-built vehicles versus about 15 percent from Germany.

BMW confirmed on July 24, 2026 that production of its next-generation Neue Klasse electric vehicles will remain on track in Mexico, with the San Luis Potosi plant set to build both the Neue Klasse i3 sedan and iX3 crossover starting in 2027. Reporting from Electrive and TechTimes lays out a significant expansion behind that commitment: the plant is growing by more than 110,000 square meters as part of an EUR 800 million investment, and BMW is adding a dedicated battery assembly center of more than 80,000 square meters, backed by more than EUR 500 million, to build Gen6 battery packs locally. San Luis Potosi becomes one of four Neue Klasse vehicle plants worldwide, alongside Debrecen in Hungary, Munich in Germany, and Shenyang in China, and one of five sites globally producing BMW's Gen6 battery technology. The commitment lands amid live US trade policy uncertainty, since Section 232 tariff treatment currently applies a 25 percent tariff to Mexico-built vehicles entering the US versus roughly 15 percent from Germany, a gap that matters directly to anyone budgeting a future Neue Klasse lease.

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What BMW confirmed

Electrive's reporting frames this as BMW reaffirming a plan that had faced some uncertainty given tariff volatility between the US and Mexico: production of Neue Klasse i3 and iX3 models in San Luis Potosi remains on track for a 2027 start, not delayed or reduced in scope. That confirmation matters because Mexico is BMW's only Neue Klasse production site in the Americas, making it the anchor for how the platform reaches North American customers.

TechTimes' coverage adds a specific milestone: iX3 production out of the Mexico plant is expected around August 2027, with the i3 sedan following after BMW's Munich plant begins Neue Klasse i3 output first. That sequencing suggests BMW is staging its global rollout by model and region rather than launching every Neue Klasse variant everywhere simultaneously.

The scale of the investment

The headline figures are substantial for a single-plant expansion: more than 110,000 square meters of additional plant space tied to an EUR 800 million investment, plus a standalone battery assembly center exceeding 80,000 square meters backed by more than EUR 500 million specifically for Gen6 battery pack production. Together, that puts BMW's combined San Luis Potosi commitment north of EUR 1.3 billion once vehicle assembly and battery investment are counted together.

Building Gen6 battery assembly locally in Mexico, rather than shipping packs from Europe or Asia, is a meaningful supply-chain decision. It shortens logistics for North American-bound vehicles and gives BMW more direct exposure to USMCA content rules, which matters both for cost and for how vehicles get classified under regional trade agreements.

How San Luis Potosi fits BMW's global Neue Klasse network

San Luis Potosi is one of four plants worldwide building Neue Klasse vehicles, joining Debrecen in Hungary, Munich in Germany, and Shenyang in China. On the battery side, it is one of five global sites producing BMW's Gen6 battery technology, reflecting how central this next-generation battery chemistry and packaging approach is to BMW's broader EV strategy, not just to Mexico specifically.

For US shoppers, the practical takeaway is that a future Neue Klasse i3 or iX3 sold domestically could plausibly be sourced from more than one plant depending on timing and trim, though Mexico is expected to be the primary Americas-facing site given its geography and the scale of investment BMW just confirmed.

The Section 232 tariff wrinkle

Here is the complication US buyers should not ignore: under current Section 232 tariff treatment, vehicles built in Mexico face a 25 percent tariff entering the US, compared with roughly 15 percent for vehicles built in Germany. That gap exists even though Mexico is a USMCA partner, reflecting how Section 232 national-security tariff authority operates somewhat separately from broader USMCA trade rules, which were themselves under a joint review process as of July 2026.

If that tariff differential persists unchanged by the time Mexico-built Neue Klasse vehicles are ready for the US market in 2027, it could meaningfully affect landed cost and therefore MSRP or lease pricing for iX3 and i3 variants sourced from San Luis Potosi versus any German-built alternative BMW might offer for the same nameplate. BMW has not detailed how it plans to price around this exposure, and the USMCA review itself could still change the underlying tariff picture before 2027 production ramps up.

Leasing angle

If you are the kind of shopper already tracking Neue Klasse launches for a 2027 or 2028 lease, the Section 232 gap between Mexico-built (25 percent) and Germany-built (roughly 15 percent) tariff treatment is worth asking your dealer about directly once order guides open. A 10-point tariff swing on an imported vehicle can show up in cap cost, and by extension in your monthly payment, even before any options or destination charges are added.

Because this is a multi-plant global launch, do not assume every Neue Klasse i3 or iX3 sold in the US comes from the same factory. Ask specifically where your build's VIN is sourced, since plant of origin can affect both tariff treatment and, potentially, initial build-quality expectations for a brand-new platform ramping up in more than one country at once.

What to watch next

  • Confirmed US pricing once BMW opens Neue Klasse i3 and iX3 order guides closer to 2027 production.
  • Whether the USMCA joint review changes Section 232 tariff treatment for Mexico-built vehicles before Neue Klasse ramps up.
  • Munich's Neue Klasse i3 production start, which BMW has sequenced ahead of the Mexico-built i3 sedan.

Key takeaways

  • BMW confirmed July 24, 2026 that San Luis Potosi, Mexico will build the Neue Klasse i3 and iX3 starting in 2027.
  • The commitment includes an EUR 800 million plant expansion and a separate EUR 500 million-plus Gen6 battery assembly center.
  • San Luis Potosi is one of four global Neue Klasse vehicle plants and one of five Gen6 battery sites.
  • Section 232 currently taxes Mexico-built vehicles at 25 percent entering the US versus about 15 percent from Germany, a gap that could affect future US pricing.

FAQ

When will BMW start building the Neue Klasse i3 and iX3 in Mexico?

BMW confirmed production is on track to begin in 2027 at its San Luis Potosi plant, with iX3 production expected around August 2027 per TechTimes and the i3 sedan following after Munich's production start.

How much is BMW investing in the Mexico plant expansion?

BMW's San Luis Potosi expansion totals more than 110,000 square meters backed by an EUR 800 million investment, plus a separate battery assembly center of more than 80,000 square meters backed by more than EUR 500 million for Gen6 battery packs.

Will Mexico-built BMWs cost more in the US because of tariffs?

It is possible. Under current Section 232 tariff treatment, Mexico-built vehicles face a 25 percent US tariff versus roughly 15 percent for Germany-built vehicles, though the ongoing USMCA joint review could still change this before 2027 production ramps up.

Sources

We link to primary reporting and official sources whenever possible. Editorial analysis is labeled separately from verified announcements.

  1. Electrive: Production of BMW i3 and iX3 in Mexico remains on track for 2027Published 2026-07-24
  2. TechTimes: BMW names iX3, i3 Mexico plant, $910M bet defies tariff pressure, America's EV futurePublished 2026-07-24
  3. Mexico Business News: BMW confirms 2027 start for Mexico EV productionPublished 2026-07-24

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