BMW has unveiled a previously secret five-door prototype of the E36/5 3 Series Compact. This experimental vehicle, based on the 316i model, features an additional pair of rear doors that never reached mass production. The car was originally finished in Boston Green with cloth upholstery, an automatic transmission, and heated seats, though it has since been repainted red.

The prototype displays signs of its experimental status, such as manual crank windows despite the presence of electric window switches on the center console. BMW did not provide an official reason for canceling the production, though analysts suggest that the high costs of engineering and tooling, combined with potential market overlap with the existing 3 Series sedan and Touring, likely played a role.

The company eventually launched a five-door hatchback in 2004 with the debut of the E87 1 Series. This model effectively replaced the 3 Series Compact concept, offering a smaller, rear-wheel-drive alternative to the standard sedan. The 1 Series later expanded to include a three-door variant in 2007, fulfilling the market need for a practical, compact BMW vehicle.

Alongside the five-door 316i, BMW preserved other rare prototypes from the E36/5 era, including the unreleased M3 Compact. While these early experiments utilized rear-wheel-drive platforms, modern equivalents like the M135i now feature front-wheel-drive architectures and xDrive systems, marking a significant shift in the company's engineering approach since the 2014 introduction of the 2 Series Active Tourer.