The car will be on a new platform that will debut with the Mini replacement. It will sit below the current 1 Series.
The move is based on an in-house belief that the small premium segment will grow at up to 6 percent a year, according to BMW chairman Norbert Reithofer.
He also said that by the end of this year BMW will have launched 17 new or revised models, including the new 5 Series, the Mini Countryman and the Rolls Royce Ghost.
