Billions in R&D. Clean-sheet design. Cutting-edge technology. Powertrain flexibility that’s second to none… BMW has set itself an almighty roster of targets with its Neue Klasse strategy, designed to completely overhaul not just its model line-up but also its way of making cars, to ensure it’s competitive in a fast-changing market.

The new iX3 is the first of a wave of new and updated models that’ll benefit from these developments. It sets the tone for BMW’s foreseeable future, so it had better be good. The fact it’s priced from £58,755 – around £7k less than the previous-generation iX3 – is an excellent start. It will be followed by the new i3 – the Neue Klasse electric 3-series – next year.

If BMW’s grand strategy sounds a bit familiar, that’s because the original Neue Klasse project of the ’60s had largely the same objectives. The difference is that back then BMW was in serious trouble – its identity unclear and profits elusive. Neue Klasse was a desperate Hail Mary, and it worked.

Today BMW’s in much better health. It’s making these changes from a position of strength – because it wants to, as it readies itself for the future, not because the current product line-up isn’t working. Far from it.

BMW’s EVs are competitive in tech and efficiency, as well as being good to drive – traits many of its rivals lack. M division is always on hand when extra performance is required. Alpina, formerly a semi-independent maker of interesting variants of the BMW line-up, is now wholly owned and has been brought in-house, giving BMW a new route to the luxury market.

And while the Domagoj Dukec era of design has been polarising (he’s moved to Rolls, with Max Missoni and Oliver Heilmer filling his shoes), it’s successfully set BMW apart from its premium German rivals. The jarring designs haven’t dented sales, either.

Despite all these positives, BMW has bet the house on doing a Neue Klasse all over again. No fewer than 40 new and revised models will benefit from Neue Klasse design, technology and powertrain developments between now and 2027, effectively overhauling almost all of BMW’s model variants in a very short space of time.

Why take such a risk? ‘I don’t think it is a gamble,’ retorts Joachim Post, board member for development. Post says it’s more about ensuring BMW is ready for all future outcomes in terms of powertrain and tech, noting differing levels of electrification take-up around the world and its myriad geopolitical challenges.

‘The flexibility we will have in our architectures, that allows us to integrate all powertrains, is highly valuable at this time because we must deal with such uncertainty,’ he says. ‘Once we have that flexibility, it’s not a risk; then we’ll be very well positioned with our production, our facilities and in our factories. This segment – the X3 and the sedans – is core for BMW. Now is the right time to focus on that core with Neue Klasse.’

While the new iX3’s overall design is certainly striking, it won’t be a complete shock to anyone who’s been keeping an eye on Munich’s recent concept cars. The i Vision Circular and i Vision Dee explored some outlandish possibilities, but they were followed by the more mainstream Vision Neue Klasse saloon and Vision Neue Klasse X SUV. This production iX3 adapts the latter for the road. Seen in the metal, it’s much cleaner and simpler than recent BMW designs – with a face that’s still distinctive without being entirely garish. Whether you like the look or not, you’ll have to get used to it; design head Adrian van Hooydonk says the new design language ‘marks the beginning of a whole new vehicle generation and will define BMW’s future to a large extent’.

Ditto with the interior; we’ve seen aspects of it before, ensuring it’s not quite as startling as it might be when seen as a whole. The new Panoramic iDrive interface involves a parallelogram central display and shallow fullwidth display at the base of the windscreen, removing the need for conventional driver’s instruments.

The software behind it is BMW’s Operating System X, which aims to be much simpler to use than the previous two generations. ‘Speaking self-critically, it was quite a mess with all of the BMW apps and menus [in the older versions], and they were quite small; even when you were at a standstill you really needed to focus,’ says Frederic Cohrssen, BMW’s project manager for user interfaces. ‘We’ve cleaned this up.’

Physical switches remain on the chunky steering wheel. ‘We still have normal buttons in the car. Some features we didn’t go digital on, based on numerous customer studies we did,’ says Cohrssen. BMW executives confirm this interior set-up will find their way into all cars – everything from the 1-series to the X7 and beyond.

As will a lot of the powertrain and chassis engineering. Neue Klasse EVs benefit from BMW’s sixth-generation electric motors, designed to reduce losses by around 40 per cent compared to the Gen5 motors. The iX3 xDrive 50 launch model has two, generating a total of 464bhp and 475lb ft, good for a 0-62mph launch in 4.9sec and a top speed of 130mph.

Those e-motors are powered by completely new battery and 800-volt architecture, designed with cylindrical cells that are energy dense and much easier to cool than pouch cells. BMW claims a 500-mile range from the 108kWh (usable) xDrive 50, and a 400kW charging peak via the most potent DC plugs. ‘That’s 40 per cent more energy than the previous iX3,’ says powertrain development expert Manuel Kainz.

Neue Klasse EVs are compatible with older 400-volt chargers, and have vehicle-to-load, vehicle-to-grid and vehicle-to-home capability built in, ensuring they’re assets even when they’re parked. Dynamics expert Christian Thalmeier says his team’s ambition was to make the iX3 light-footed. ‘But lightfooted is a very high aim, because this is still an electric vehicle, so it’s heavier than a combustion car,’ he says. ‘But the car still has to be fun to drive.’ We’ve already driven a prototype, and the signs are positive.

The iX3’s weight distribution – 49 per cent front, 51 rear – helps with that, as does the ‘Heart of Joy’ supercomputer. Not only does it augment the driver’s steering and brake inputs to ensure a smooth driving experience, but it also tailors the intrusiveness of the assistance systems via driver monitoring.

‘Because the system knows you’re alert and looking at the road, you can change lanes without any blinker,’ says Thalmeier. ‘It means you don’t have to deactivate the system and helps the car feel symbiotic.’

Bold new design. Dramatic steps forward in technology and EV engineering. Driver assistance that won’t aggravate and distract… Whether or not the Neue Klasse project is risky, the iX3 showcases plenty of reasons to think it’s going to succeed.