However I do see the second generation i3 a head to head Blue Star competitor.
IMO that's making a big assumption about where BMW is going with this. I think it's fair to say that it could be a competitor, but I'm not sure it necessarily will be. It depends whether BMW takes the Nissan route of cutting prices and keeping the car limited range or really tries to enhance the car to be a true 3 series competitor (I can't imaging the current i3 being terribly interesting to most of the normal 3 series buyers). The styling choices really point to the european city car market.