BMW is set to build a number of electric vehicles at its assembly plant in San Luis Potosi, Mexico.

The facility opened in 2019 and currently builds the 2-Series and 3-Series. It has the capacity to build 175,000 vehicles annually, although it was operating at just 39 per cent last year. While the German automaker itself hasn’t confirmed any potential EV plans for the site, unnamed sources claim that it will handle production of the next-generation electric 3-Series and the iX3 SUV starting in 2027.

BMW has previously said that it will build crossovers at the Mexican site but has not stated which ones, Auto News notes.

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“Mexico will play an important role in our complete setup,” BMW Group chief executive Oliver Zipse said in April. “At some point in time, you will see X models because the market demand is so high. That’s all I can say right now.”

If the Mexican factory does indeed start to produce both the electric 3-Series and iX3 in 2027, it could become the company’s first dedicated electric vehicle production center.

The forthcoming electric 3-Series will be one of many models underpinned by BMW’s forthcoming Neue Klasse electric vehicle architecture. The platform will be focused on the premium midsize segment and will be a key pillar in BMW’s aim to sell 2 million electric vehicles by 2025 and half of its new car sales to come from EVs by 2030.

BMW has a lot of confidence in the Neue Klasse platform. In fact, Zipse recently said the brand is targeting 30 per cent cost savings due to its use of cylindrical cells while also using new battery chemistry and cell formats to increase power output. Neue Klasse-based models are expected to be just as profitable as the company’s ICE vehicles.