Since the new Mercedes S-Class arrived, we've been eagerly waiting to see how BMW will respond. Development of the next-generation BMW 7 Series is underway, and for the first time, the flagship luxury sedan will be sold with a combustion engine, a plugin-hybrid, and a fully electric powertrain.

We've already seen the i7 undergoing testing, and now our spies have caught a prototype of the combustion-powered 7 Series being tested at the Nurburgring. We also get to see it in action thanks to a video from the same test session.

Since our last sighting of the BMW 7 Series being put through its paces in the snow, the camouflage has started to peel away on the lower sections of the front bumper, confirming that the kidney grilles will be larger than the current model's. Strangely, BMW has mounted the license plate above the grille where the badge is usually located.

We would be surprised if the production car looks like this, but BMW could fix the license plate to the grille like on the new 4 Series, M4, and M3. The unusual-looking headlights and taillights appear to be provisional, while the quad exhaust tips suggest we're looking at an M Sport variant.

We also get a first look inside the new 7 Series, which borrows the curved display from the i4 and iX. Spanning the width of the interior, the curved display inside the i4 and iX comprises of a 12.3-inch digital instrument cluster and a 14.9-inch touchscreen.

Under the hood, we're expecting the inline-six and V8 engine offered in the current 7 Series to carry over, but the V12 will no longer be available. For reference, the current V8-powered BMW 7 Series is rated at 523 hp and 553 lb-ft. The electric i7, on the other hand, will be the most powerful 7 Series ever, with two electric motors reportedly producing a combined 650 hp. The new 7 Series is expected to debut in late 2022 or early 2023, but it will likely be previewed by a concept at the International Motor Show in Munich this September.