BMW AG debuted the first production model of its "Neue Klasse "line, the electric iX3, on Friday, adding that the China-made version will be unveiled later this year.

The Neue Klasse models are widely believed by company executives and analysts to defend the German carmaker's position in premium electrification, especially in China, the largest and most competitive NEV market in the world.

Chairman Oliver Zipse described the Neue Klasse as "the biggest future-focused project" in BMW's history, promising a huge leap in design, technology and user experience.

Despite its unveiling later this year, the China-made iX3 will not start production until 2026, at BMW's manufacturing complex in Shenyang, Liaoning province.

The German carmaker said the China-version has been designed with Chinese consumers in mind from day one, and the Chinese engineering team has played a central role in shaping it.

Analysts said the moves underscore China's pivotal role in the German carmaker's electric transition.

Cui Dongshu, secretary-general of the China Passenger Car Association, said China constituted 64.5 percent of the global electric car market in the first half of the year. If plug-in hybrids were included, the figure would rise to 68.3 percent, he said.

From cabin space to digital features and driving assistance, the iX3 reflects local tastes and technological expectations, BMW said.

Among other things, it will integrate sixth-generation eDrive technology with a CLTC range of up to 900 kilometers, aiming to ease lingering anxieties about battery range.

China-specific features abound. The iX3 will embed artificial-intelligence capabilities developed with partners including Alibaba and DeepSeek, while drawing on Huawei's HarmonyOS ecosystem for services such as digital keys and HiCar connectivity.

Smart driving features are being co-developed with Momenta to better adapt to Chinese road conditions.

The company calls the car a benchmark for "China-exclusive intelligence, driving dynamics and luxury".

The iX3 sits on BMW's new NCAR architecture, which consolidates breakthroughs including a panoramic iDrive interface, a new electronic control system dubbed the "super brain" and cylindrical battery cells.

These elements will flow across the Neue Klasse portfolio, which will expand to more than 40 new models globally by 2027, with over 20 slated for China between 2026 and 2027.

BMW's push comes as China cements its place at the center of the global auto industry's technology race, particularly in AI.

China is the decisive battleground, Zipse said, citing the company's collaboration with domestic tech leaders to integrate cutting-edge AI into its vehicles.

Until very recently BMW had been one of the best-selling premium carmakers in China.

But the rise of local NEV rivals, which boast faster model rollouts as well as smart and luxurious cabin features, is wooing some customers away.

"We believe the Neue Klasse should redefine BMW's brand image in China," said Jochen Goller, BMW's board member responsible for customer, brand, and sales, in an interview earlier this year.

BMW is not competing with those startups head-on in areas they excel, said Goller, who highlights a focused strategy for the German carmaker: pure driving pleasure and a spirit of adventure.

"If consumers are simply looking for a 'smartphone on wheels', there are other brands they can choose.

"But for those who seek pure driving passion, a spirit of exploration, and the solid engineering that underpins it all, BMW is the ideal choice," said Goller.