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The new car, which will be based on the next-gen 1-series, will have a design intended to introduce younger customers to new M cars. With pricing that starts from $50,000, the new car is meant to rival the next-generation Audi S3. The source added that BMW is aware that existing customers are gravitating towards larger and more expensive models such as the X5/X6 M. BMW believes this entry-level model would be a good counter to that trend. Reportedly, one of the car’s biggest supporters is BMW M division boss Kay Segler. Asked whether BMW’s M division was thinking of putting a sports car against the R8, Mercedes SLS and Porsche’s 911 Turbo, the source said that such a project would “fit nicely” with its operations and would get the acceptance of engineers but that the new model is the priority.