In welcome news for enthusiasts, BMW has indicated that the next-gen ICE-powered M3 will continue to offer a manual gearbox. BMW M chief executive officer Frank van Meel stated in a recent interview that the performance division intends to keep the three-pedal option alive “as long as possible” despite tightening regulations and dwindling supplier support.

Manuals offer a way better mechanical connection, says BMW M boss

M2 manual sees particularly strong demand in the automatic-dominated US market

Speaking to Autocar UK, van Meel noted that manual transmissions remain an important part of BMW M’s identity because of the driver engagement they provide. “We want to have this mechanical connection, shifting by yourself. It’s an emotional thing; it’s not just an engineering thing, and it’s still there,” van Meel said.

He pointed to the BMW M2 as proof that demand for manual gearboxes remains strong. In the US – a market where automatic cars vastly outsell manual ones – M2 sales are split roughly 50:50 between the performance coupe’s 6-speed manual and the 8-speed automatic variants. In May 2026, BMW even introduced a limited-run M3 CS Handschalter edition with a 6-speed manual only for the US and Canada.

However, van Meel acknowledged that offering manual gearboxes is becoming increasingly difficult. “The supplier base is getting smaller, and with all the driver-assist systems, it is getting more difficult to disconnect the drivetrain,” he said, before adding that BMW still intends “to keep the manual as long as possible”.

S58 turbo straight-six to live on in next-gen M3

No PHEV setup as BMW upgraded the S58 for Euro 7 compliance

Unlike the new Audi RS5, which uses a V6 plug-in hybrid powertrain in the interest of meeting emission norms, the next-gen ICE M3 will continue using its predecessor’s 3.0-litre ‘S58’ turbo-petrol inline-six engine with no major electric assistance.

BMW recently upgraded the S58 engine to comply with upcoming Euro 7 emissions regulations, introducing pre-chamber combustion (wherein the air-fuel mixture is ignited right before it enters the cylinder) and new variable-geometry turbochargers. The changes are touted to improve combustion efficiency, reduce emissions and maintain performance without sacrificing the engine’s character.

Enhanced aural experience, but no difference in engine output

According to BMW, the Euro 7-compliant S58 even has throatier induction and exhaust sounds at high revs. However, engine output will remain unchanged from that of the current M3, which churns out 530hp and 650Nm. The BMW M boss added that the automaker is confident it can preserve the engine’s performance despite stricter emissions requirements, although cooling remains one of the biggest engineering challenges.

“If you go on track, of course, temperature is an issue. We improved cooling to counteract; the challenge with the big engines and the big coolers is that they need to be even stronger,” van Meel remarked. Therefore, expect the front end of the new ICE-powered M3 to sport a large open grille with a big intercooler behind it.

ICE and electric M3s to co-exist in similar price ranges

BMW wants to offer buyers the choice between petrol and electric

BMW will sell both ICE and EV versions of the next-generation M3 simultaneously. While the two models will share similar styling inspired by the Vision Neue Klasse M Concept, they will be underpinned by different platforms and use entirely different powertrains.

According to van Meel, BMW wants customers to decide whether they prefer petrol or electric performance rather than forcing either on them: “There might be customers who say ‘I want to have a combustion engine because I like the sound… or I cannot charge.’ That’s fully okay.”

BMW M sales boss Sylvia Neubauer separately told Autocar UK that the ICE and electric M3 will be priced in the “same ballpark” and confirmed that the carmaker will continue offering combustion-powered M cars for enthusiasts who are not ready to switch to electric.

BMW M3 Touring estate to see another generation

Neubauer also confirmed that there will be a Touring estate version of the next-gen M3, as the current one is among BMW M’s strongest-performing models, especially in China. Expect the next-gen M3 Touring to have mechanicals similar to its sedan counterpart.