Premium EV price war? Cheaper BMW electric cars loom, starting with the iX1 SUV

Look out, Tesla Model Y, Volvo XC40 Recharge and Polestar 2, because the Germans are coming after you in the shape of an even more-sharply priced version of the BMW iX1.

Already causing a stir by undercutting some other twin-electric motor all-wheel-drive (AWD) rivals costing nearly $110,000 like the Mercedes-Benz EQB 350 4Matic and Genesis GV60, the iX1 xDrive30 from $84,900 (all prices stated are before on-road costs) is expected to be joined by a single-motor and front-wheel-drive (2WD) sDrive grade in the near future.

Count on seeing sDrive20 or sDrive25 badges glued on, denoting the fact that they will likely offer substantially less power and torque than the combined efforts of the xDrive30's 230kW and 494Nm twin motors respectively.

That said, both might end up arriving, to give the brand a broader spectrum of EV SUV offerings to consumers hungry for such vehicles.

BMW is keeping quiet on any details, but – using the circa-10 per cent price difference between the XC40 Recharge Pure Electric 2WD and its Twin Pure Electric AWD sibling – as a guide, we're predicting a starting point of about $76,000 for the iX1 2WD.

Considering that the recently-released xDrive30 includes AWD as well as a surprisingly generous level of not-strictly-essential features like Adaptive M dampers, a 22kW on-board AC charger (for now, most rivals make do with half that) and a head-up display, there's scope for an even greater price gap between the two.

Additionally, the other good news concerning the Bavarian-built five-seater small SUV EV is that the base iX1 2WD will likely exceed the 400km WLTP range average by some margin, since it's been widely speculated that BMW will maintain the xDrive30's 64.7kWh battery pack.

Less money, more range, BMW design and dynamics… what's not to like here?

Overseas reports suggest that the iX1 2WD might be unveiled internationally before the end of this year, ahead of a 2024 global rollout, though this may be pushed back due to strong demand.

While BMW Australia Product Planning Manager, Daniel Silverwood, declined to talk about coming or future product, he did say that BMW does not intend to be left behind in the premium EV segment by having a wide selection of models for buyers to choose from.

"We have the iX3 above, in terms of size and function," he said. "It's important for BMW to have an offer that offer that provides both all the hallmarks of styling and characteristics and functionality, and also be at a price point that is attainable as well.

"We see there's a lot of opportunity to really expand our electric footprint within the compact segment.

"It was recognised that this was a positioning necessary to ensure we had a strong uptake in electrified mobility."

BMW Australia Product and Business Communications Manager, Nick Raman, added that the German brand will likely maintain aggressive EV pricing moving forward because it's in its best interest.

"There's a lot happening in this segment, so a compelling offer at this price point puts us in a really good position," he said.

Still, even at a mid-$70K price point, the cheaper iX1 would hardly be regarded as affordable by many, given that it's more expensive than the Tesla Model Y from $65,400 (at the time of writing, anyway), Polestar 2 from $67,400 and Volvo XC40 Pure Electric from $73,990.

This means that proposed base 2WD's price would have to quite a way down to go.

And let's not forget Volvo's provocative $59,990 positioning for its (much smaller) EX30 due out at the end of the year.

Furthermore, the company says it was forced to jack the iX1 xDrive30's price up from its headline-making $82,900 last October by $2000.

BMW fans can always go for the cheaper petrol-powered internal combustion engine (ICE) X1, that kick off from $60,400 and $70,400 for the sDrive18i and xDrive20i respectively.

Whether we will see the X1 plug-in hybrid EV (PHEV) versions offered elsewhere as the Drive25e and xDrive30e remains to be seen.

Brandishing a three-cylinder turbo-petrol engine up front and a motor driving the rear axle, these offer up to 89km of WLTP range to plug the gap between ICE and EV.

But don't count on them, as Australian consumers seem to be skipping this electrification stepping stone for the full EV experience.