According to BMW top execs, the two cars are just the tip of the iceberg. The carmaker is looking forward to launch their all electric vehicle that is expected to go on full production by the first half of this decade. This new electric vehicle will solely depend on the power stored in a battery pack.

BMW codenamed the development as Project Megacity which was driven by the research that kicked off with their Project i back in 2008.

The Project Megacity will be an EV that uses designs that will be specific for use in congested city streets. According to insiders, the production of the 2014 model might begin by the second half of 2013. The car is set to be assembled in the BMW plant in Leipzig, Germany.

The badge of Megacity will be a sub-brand of BMW. There were also speculations that the carmaker planned to use the Isetta name which was all about their mini cars during the 1950’s.

The details about the Megacity Vehicle is very limited since it is still in the development phase. No one can really tell how small it will be but the company hinted that it will be smaller than the current model of the Honda Fit and will take a form of a 3-door hatchback. The car will be made full or partly of carbon fiber to keep its weight down.

BMW is also collaborating with SB-Limotive for the batteries that will power the 125 kW or 170 hp electric motor.

The ActiveHybrid 5 is expected to be inspired by the 2010 BMW ActiveHybrid 7 which is its full size sports sedan on the hybrid luxury class. The 7-Series uses a 3-phase electric motor which is linked to the crankshaft of the car’s V-8 gasoline engine paired with new 8-speed automatic transmission.

The 5-Series will be a mild hybrid. This means that the car will not run relying on the electric engine alone like the 2010 BMW X6 ActiveHybrid. What it will do is utilize the electric motor to restart the gasoline engine after it turns off during stops. The electric motor will also add more torque to help the gasoline engine.

In the 7-Series, the combined output of the electric motor and the gasoline engine is 455 horsepower with a good torque at 516 lb-ft. The bigger ActiveHybrid-7 can zoom from 0 to 60 mph in 4.8 seconds but still it offers a 15% better fuel economy than the powerful 750i.

The announcement of the ActiveHybrid-5 release this March confirms that earlier disclosure of plans of the carmaker. The carmaker sees the potential of the 3-,5-, and 7-Series to become mild hybrids. This opens the possibility of an ActiveHybrid-3 any time soon.

It is not yet clear if the ActiveHybrid-5 will be released along side the 2011 5-Series due for roll out in the US by fall or if it will be marketed as a 2012 model.