BMW is out testing an updated version of its 2-Series Gran Coupe, the compact sedan that first arrived in 2019 as a 2020 model.

The updated version is due next year as a 2025 model. It will arrive alongside an updated version of the related 1-Series hatchback to be sold overseas. Both models will adopt the latest version of BMW Group’s FAAR platform designed for front-wheel-drive cars.

The 2-Series Gran Coupe prototype is heavily camouflaged, suggesting significant changes are planned. There are rumors BMW may market the car as a next-generation model.

The headlights on the updated model have a new design, and the grille also appears to be new. The front fascia is also a new design with a more horizontal theme. At the rear, it appears that the taillight signature will be new and the fascia will take on a cleaner design.

Inside, the 2-Series Gran Coupe is likely to finally adopt the more modern dash design found in the related 2-Series Active Tourer sold overseas. This means a larger infotainment screen and a new center console with additional controls, including a small nub for changing gears, as opposed to the traditional upright lever.

It isn’t clear what’s planned for the powertrain lineup. More power is possible, especially for the range-topping M235i whose current 2.0-liter turbo-4 is good for 301 hp. It’s possible we’ll see a bump to 312 hp, which matches the output the same engine makes in the related X1 M35i crossover that arrived for 2024. The latest prototype is for the M235i variant, as indicated by the huge brakes and quad-exhaust tips. The 2-Series Gran Coupe is also available in the U.S. in a 228i grade whose 2.0-liter turbo-4 makes 228 hp.

A plug-in hybrid powertrain may also be added to the lineup, since there are no plans for an electric 2-Series Gran Coupe just yet. Any plug-in hybrid powertrain would also likely be borrowed from the 2-Series Active Tourer whose own plug-in hybrid variant features a 1.5-liter turbo-3 and an electric motor for up to 321 hp combined.

BMW has another new compact already in U.S. showrooms. A redesigned X2 arrived for the 2024 model year and started sales in the U.S. last month.