2016 BMW i5 Plug-In Hybrid

As it stands, BMW produces the i3, a small electric city car, and the i8, a performance-oriented hybrid sports car. Logically, the third model could be a sedan and that's what most rumors are pointing towards.

No confirmation or denial has been given about this, but Autocar reports that the third BMW i model will either take the shape of a sedan or a stretched-i3 with more interior space and a larger footprint.

Next year, BMW will celebrate its 100th anniversary and could opt for launching the new car in 2016 to coincide. The company’s board member for sales and marketing, Ian Robertson, did say “You will see more i products and we are in the final stages of deciding what the next car will be and when you’ll see it.”

If the third model takes the form of a sedan, it would likely rival Tesla's upcoming Model 3 which will act as the Californian manufacturers entry-level car.