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BMW i3 to Launch in US at 3 Series Price Point

BMW will introduce its i3 electric hatchback to US buyers in May 2014, targeting a starting price comparable to a standard 3 Series and expecting demand to exceed supply.

By Steve James Updated
BMW i3 electric car, front view
BMW i3 electric car, front view Frank Schulenburg / CC0

BMW will bring its i3 electric hatchback to US showrooms in May 2014, aiming for a starting price in line with a typically equipped 3 Series saloon. The company expects demand to outstrip supply in the car’s first year on sale.

The i3, BMW’s first production electric vehicle under its new “i” sub-brand, enters the US market after its European debut. North American chief Ludwig Willisch confirmed the price would be “in the ballpark” of a standard 3 Series, with the i3 starting at $42,275 before federal incentives. Buyers can apply a $7,500 federal tax credit, bringing the effective entry price below $35,000 for many customers.

BMW expects the US to become the world’s largest market for its electric models. Willisch said demand for the i3 is already strong, with around 1,000 US customers having registered early interest ahead of its showroom launch. He indicated that “a couple thousand” sales were likely in the first year, but warned that supply could be limited due to the complexity of producing carbon fibre body shells at scale.

Production and supply constraints

The i3’s lightweight carbon fibre body is produced in Moses Lake, Washington, through a joint venture. This approach is central to the i3’s design and efficiency, but scaling up production remains a challenge. BMW’s investment in the i3 and its i8 plug-in hybrid sibling is estimated at $3 billion, reflecting the technical and manufacturing hurdles involved.

Willisch acknowledged that building enough carbon fibre bodies could limit availability in the first year. While this could frustrate some buyers, BMW sees it as a positive sign of demand for its electric models. The company has trademarked additional “i” model names, suggesting plans for a broader electric range in future.

Technical details and US specification

The US-spec i3 offers an electric driving range of 80 to 100 miles per charge. A range extender version, featuring a small petrol engine, can roughly double the total range for buyers needing longer trips. The i3’s carbon fibre and aluminium construction keeps weight down, helping efficiency and performance. The car’s compact size and four-door layout target urban buyers seeking a premium electric alternative.

BMW i3 (US specification, 2014)
Base Price (before incentives)$42,275
Federal Tax Credit$7,500
Electric Range80–100 miles
Range Extender OptionAvailable (doubles range)
Body ConstructionCarbon fibre and aluminium
US Market LaunchMay 2014

Dealership investment and showroom upgrades

BMW is backing the i3 launch with a push to modernise its US dealerships. Over five years, BMW’s American dealers plan to invest more than $2.5 billion to expand and update showrooms, increasing capacity by 40 percent. The new store designs feature open layouts and a focus on electric vehicles, aiming to attract younger buyers and support the introduction of advanced technologies.

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