1923–1939: Start of production - Automobiles

BMW's production of automobiles began in 1928, when the company purchased the Automobilwerk Eisenach car company from Gothaer Waggonfabrik. Eisenach's current model was the Dixi 3/15, a licensed copy of the Austin 7 which had begun production in 1927. Following the takeover, the Dixi 3/15 became the BMW 3/15, BMW's first production car. Towards the end of 1930, BMW attempted to introduce a new front axle with independent wheel suspension for both their models, the BMW 'Dixi' 3/15 DA4 and BMW 'Wartburg' DA3, but this resulted in accidents with the prototypes because of construction faults.

In 1932, the BMW 3/20 became the first BMW automobile designed entirely by BMW. It was powered by a four-cylinder engine, which BMW designed based on the Austin 7 engine.

BMW's first automotive straight-six engine was released in 1933, in the BMW 303, which was larger and more conventional than its 3/20 predecessor. The 303 was also the first BMW to use the "kidney grille" that would become a characteristic of BMW styling. The 303 formed the basis for the four-cylinder 309 and the larger-engined 315 and 319, while the 315/1 and 319/1 roadsters were built using the chassis of the 303 and the restyled 329.

The 303 platform was supplemented in 1936 by the BMW 326, a larger luxury car with a more rigid frame. The 326 was BMW's first four-door sedan. A shortened version of the 326 chassis was used in the BMW 320 (which replaced the 329), the BMW 321 (which replaced the 320) and in the BMW 327 coupé.

Also in 1936, the BMW 328 sports car replaced the 315/1 and 319/1. Unlike its predecessors, the 328 had a purpose-built chassis and a unique engine (the BMW M328) which produced 59 kW (79 bhp; 80 PS). From its introduction at the Eifelrennen race at the Nürburgring in 1936, where Ernst Henne drove it to win the 2.0 litre class, to the overall victory of Fritz Huschke von Hanstein at the 1940 Brescia Grand Prix during World War II. The 328 was highly successful in motor racing, with more than 100 class wins in 1937 alone.

The BMW 335 luxury car was produced from 1939 to 1941. It was built using an extended version of the 326 chassis with the larger BMW M335 straight-six engine.