BMW's $1 billion Mexico assembly plant could become the automaker's first dedicated electric vehicle production center.
A source familiar with BMW's product plans said the automaker is set to begin manufacturing the next-generation 3 Series electric sedan and iX3 electric crossover starting in 2027 in San Luis Potosi, Mexico.
The source said that production of the crossover will begin in the first half of 2027, followed by sedan output in the second half of the year.
A BMW spokesman declined to comment on future production plans.
In April, Automotive News reported on BMW's plans to move some X3 production to Mexico.
The X3 crossover is BMW's bestseller in the U.S. The company sold 204,658 X-badged SUVs in the U.S. last year, up 55 percent from five years earlier. In comparison, the overall luxury light-truck segment grew about 24 percent during that period, according to the Automotive News Research & Data Center.
BMW Group CEO Oliver Zipse last month said crossover production will come to Mexico, without revealing specific plans.
"Mexico will play an important role in our complete setup," Zipse told Automotive News. "At some point in time, you will see X models because the market demand is so high. That is all I can say right now."
The Mexico plant, which opened in 2019, builds gasoline-powered BMW 2 Series and 3 Series sedans. The factory operated at just 39 percent of its 175,000-vehicle capacity last year.