The 2027 BMW iX3 is now available in the US, and its starting price my surprise and delight fans of the Bavarian automaker.

The iX3, which is the first vehicle built on BMW’s next-gen Neue Klasse platform, starts at $62,850 including shipping, which is about $5,000 less than the equivalent gas-powered BMW X3 M50 xDrive (starting price $67,850). US customers can start configuring their vehicle now on BMW’s website, with deliveries expected to start in September.

The iX3 coming in at a starting price that’s less than its equivalent gas car is a good sign for EV affordability in the US. EVs are still, on average, more expensive than ICE vehicles, with the average transaction price of a batter-powered model hitting $54,508 this past March, according to Cox Automotive. That number itself reflects a 6 percent decrease year over year.

To be sure, BMW is a luxury brand, and most people would likely find the iX3, even with its impressive starting price, a bit too rich for their blood. But if BMW can figure out how to price EVs to be more competitive with their gas lineup, other brands should be taking notes.

Of course, the average BMW customer is likely to spend a lot more than $62,850 on their iX3. The automaker offers a range of options, such as a $1,500 comfort package, $2,500 M sport package, and $1,900 technology package, that would push the iX3’s price well into the range of its outgoing iX electric vehicle.

The iX3 also impresses with its range. With 20-inch standard all-season tires, the EV can travel an estimated 383 miles on a single charge. But with summer tires (which can be added at no cost), that range increases to an impressive 434 miles, based on the EPA’s standard.

In terms of performance, the iX3 and X3 are very similar. Both have a dual motor, all-wheel drive setup. The iX3 can put out 463 horsepower and 467 lb-ft of torque, with a 0-60 mph acceleration time of 4.9 seconds. Meanwhile, the X3 can make 393 hp and accelerate 0-60 in 4.4 seconds.