
Just when you thought there was no room for another SUV, BMW has come out with what it calls the world's first "luxury compact Sports Activity Vehicle."
And, with no rivals from Audi, Mercedes or Lexus, the Bavarian car maker is not really stretching the truth.
But, with a starting price of $43,500, the BMW X1 does have rivals from the flagship offerings of the Honda CR-V, Mazda CX-7, Volkswagen Tiguan and the V6-powered Toyota Rav4.
The majority of the Land Rover Freelander 2 models are also priced below $56,000. This is particularly noteworthy as the $43,000 X1 is not all-wheel-drive, it is rear-drive, and to get into an AWD version it will cost you more than $52,000.
The X1 is the fourth X model in the BMW range - joining the X3, X5 and X6. But, unlike these versions the X1 is the first to come with the option of a two-wheel-drive model.
The sDrive models are rear-wheel-drive, the xDrive models are AWD.

BMW says in Australia one in every third vehicle sold is an X model. And, the car maker is hoping that this latest X model will bring more women to the brand - it predicts the X1 will have the highest proportion of female buyers of any car in the BMW range.
The new car is now on sale but buyers can only chose from two diesel models - the xDrive20d or xDrive23d.
The cheaper two-wheel-drive version and petrol models don't go on sale until June.
BMW doesn't expect the new X1 to cannibalise sales from the 3 Series Touring as the wagon attracts a "more sophisticated" buyer. It also doesn't see the larger X3 under any threat either as it's enjoying its best sales in some years.
xDrive20d - 6-speed manual gearbox, automatic climate control, cruise control with brake function, rear parking sensors, power windows and mirrors, BMW Professional CD/MP3 audio system with USB and auxiliary connections, Bluetooth, multi function leather sport steering wheel, daytime driving lights, 17-inch alloy wheels and rear underfloor storage compartment, black kidney grille.
xDrive23d includes a six-speed automatic gearbox with gear-shift paddles, aluminium kidney grille and different style alloy wheels.
Sunroof, rear camera, Nevada leather trim, navigation, front parking sensors, rear camera, 18-inch alloy wheels, performance control, metallic paintwork, Bi-Xenon headlights, comfort access, adaptive headlights, high beam assist, power seats, electric lumbar support for front seats, seat heaters, Harman/Kardon surround sound system and voice control.
If you've seen the latest offering from BMW, don't be put off by its nomenclature. By calling it an X1, most people would think that the new X1 is based on the car maker's 1 Series. This is not the case.
The X1 is built off the 3 Series wagon which has allowed BMW to make use of the larger car's wheelbase.
So, while the X1 may look small on the outside it is definitely not compact on the inside. In fact, the X1 has more rear head room than the larger X3 and the rear seat back reclines for more comfort.
Unlike the 1 Series, there are plenty of storage spaces, with provisions for bottles in each of the door pockets and a configurable underfloor area in the boot that hides valuables.
As you would expect from BMW the new X1 sets the benchmark for handling in the class. On the road the X1 feels more like cross between the 1 Series and the 3 Series than an SUV. The optional performance control ($400) keeps you "on line" by braking the inner rear wheel and increasing torque to the outer wheel in corners to pull the car through the bend.
The steering is a bit heavy but is direct.
All-wheel-drive diesel models were the only cars available at the recent launch in Melbourne.
Performance from the xDrive20d is adequate. The 2.0-litre turbocharged diesel engine produces 130kW of power and 350Nm of torque. This version uses stop-start technology to avoid wasting fuel when stopped in traffic, or at a set of lights, and helps the xdrive20d achieve a claimed fuel consumption figure of 5.8 litres/100km. CO2 emissions are 153g/km. On our test (predominantly rural mixed with some urban parts) we averaged 7.6L/100km.
It is the xDrive23d, however, which is the pick of the two engines. Its extra turbo - yep it gets two - provides seamless performance across the rev range. The smaller turbo activates the moment the accelerator pedal is depressed, while the larger turbocharger cuts in under higher load. The slick six-speed auto gearbox completes the package nicely and cements the 23d the pick as a drive’s car.
Despite its performance credentials the twin-turbo diesel is still relatively frugal with an official average consumption figure of 6.3 litres per 100km and CO2 emissions of 167g/km.
Our biggest gripe of the X1 was the ride. The combination of large wheels and run flat tyres never makes for a cushy ride. Both the 20d and 23d models come with 17-inch rubber as standard but all the cars we tested were fitted with 18s. This tyre and wheel package also contributed to some road noise intrusion over coarse bitumen.
The X1 has a towing capacity of 1400kg.
| BMW 20d | BMW 23d | |
| Category | Compact SUV | Compact SUV |
| Year | 2010 | 2010 |
| Body Type | SUV | SUV |
| Pluses |
Best handling SUV in its class |
Best handling SUV in its class |
| Minuses |
AWD versions cost more than $52,000 |
AWD versions cost more than $52,000 |
| Prices |
$43,500 for sDrive18 (due in June) or $57,200 for the xDrive20d available now |
$43,500 for sDrive18 (due in June) or $57,200 for the xDrive20d available now |
| Fuel | Diesel | Diesel |
| Engine aspiration | Turbo charged | Turbo charged |
| Driving wheels | AWD | AWD |
| Max towed mass | 1400 kg | 1400 kg |
| Fuel consumption (ave) | 5.8 L/100km | 6.3 L/100km |
| ADR avg CO2 Emissions | 153 g/km | 167 g/km |
BMW, 20d, 23d, Compact SUV, SUV , Press-releases, Motoring Feed