Photo Credit: iStockBMW's next small EV could end up being one of its biggest plays yet.A new report from InsideEVs says the automaker is planning a dedicated all-electric 1 Series hatchback — potentially called the i1 — with classic hatchback proportions, rear-wheel drive, and a lower starting price than other Neue Klasse models.What happened?According to the report, citing information from Autocar, BMW is preparing to replace today's gas-powered 1 Series in 2028 with two separate models: a combustion version and a fully electric version built on the company's next-generation Neue Klasse platform.AdvertisementAdvertisementThat EV reportedly won't follow the old tall, quirky i3 formula. Instead, it's said to be a "true low-to-the-ground hatchback," giving it a more traditional shape and helping it avoid the bulk of a crossover. The report says BMW sees the compact EV as one of its most important models, particularly in Europe, where the 1 Series is still a strong seller.The i1 could keep proper hatchback proportions, use rear-wheel drive, and have its own distinct look while using toned-down specs to hit a more affordable price point, InsideEVs noted. The electric hatchback is also expected to look noticeably different from BMW's electric sedan lineup, with unique front-end styling and body details. Autocar added that the i1 could even bring back the three-door body style that disappeared a few years ago.Why does it matter?If the report is accurate, BMW may be doing something many drivers have been waiting for: bringing premium EV technology to a smaller, more affordable car instead of saving it for large luxury SUVs.AdvertisementAdvertisementThat could be important for shoppers who want the benefits of an EV without paying flagship prices. EVs can save drivers money on fuel, and they usually require less routine maintenance than gas-powered cars because they don't need oil changes and have fewer moving parts. A smaller-battery i1 could also lower the barrier to entry for buyers who don't need maximum range.If you're considering making the switch to an EV, this guide can help. Charging at home is also much cheaper than depending on public chargers. Pairing an EV with rooftop solar can lower costs even more, since using low-cost energy generated from solar is cheaper than public charging or drawing power from the grid.What are people saying?The clearest signal may simply be demand. The 1 Series reportedly cleared 100,000 sales in 2025, with Italy and France among the markets helping keep the hatchback popular.AdvertisementAdvertisementInsideEVs described the i1 as potentially more important than another long-range flagship SUV, suggesting BMW believes a smaller, cheaper EV could have broader real-world appeal.Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.