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BMW CEO Krueger revealed plans to increase the i3's range in 2016

It's no secret that if BMW wants the i3 to continue to remain relevant they will eventually have to increase its all electric range. In fact, in about a year there will be no less than two electric vehicles available in North America that have double the i3's all electric range and also cost less. Nissan will be launching the second generation LEAF, and Chevrolet will bring the Bolt EV to market by the end of 2016 and they are both rumored to have approximately 200 miles of electric range.
This is the first time anyone from BMW has offered a clear statement about increasing the range of the current i3. Personally, I didn't expect this yet, but welcome the news. I had always maintained that the i3's range would be linked to the progress made by BMW's battery partner, Samsung SDI. So the news that the MY2017 i3 will have increased range is interesting as well as exciting. It's interesting because Samsung has maintained that they wouldn't be bringing the next generation of large format, automotive grade batteries with increased energy density to market before 2018 - 2019. See timeline produced by Samsung SDI below:

Samsung SDI Battery Technology Roadmap

Krueger was also asked if current i3 owners would have the ability to upgrade their cars with the new batteries and his answer was: "We are currently looking into that." Personally I believe that will be possible, but not economically viable, for now at least. I know current i3 owners will be asking about an upgrade but it just doesn't make sense to replace a battery pack that is two years old for just a little more range. I think it's more likely that in four or five more years when some of the original wave of i3 owners have 120,000 to 150,000 miles on their car they will be looking at the next generation of battery cells which will be available and these "new" battery cells will already be obsolete. I would be surprised if BMW didn't engineer those new cells to fit in the same modules the current i3 uses, so a complete replacement with the upgraded battery cells would then be possible.

What effect this will have on i3 sales from now until this new longer range i3 is available is unknown, but there is at least some comparable data to use. Both the Chevy Volt and the Nissan LEAF launched in late 2010 and are just now releasing upgraded range models. The Volt is a complete redesign and the LEAF is doing more of what BMW is now by keeping basically the same vehicle and offering it with an incremental longer range. The 2nd generation LEAF which will be completely redesigned and offer much more range won't be available for about another year. In both cases these cars experienced greatly reduced monthly sales in their final months as customers waited for the new model with longer range. Like Nissan and Chevrolet, BMW will likely have to offer some favorable financial incentives to clear the remaining 2016 stock once the new battery i3 is nearing availability meaning this should be a good time to pick up an i3 for a great deal.