What's the difference?
Sometimes a name change can make all the difference.
Google used to be called “Back Rub”. The Spice Girls started off as “Touch”. And – particularly in Germany – some premium sedans became known as “coupes”, as they struggled to stay popular against SUVs.
Case in point: what is essentially a 1 Series hatchback with a boot has been more glamorously badged the “2 Series Gran Coupe” since 2020.
Still following the sedan script with four doors, it’s BMW’s tilt at Mercedes’ booted A-Class hatch, the rakish CLA, unveiled early last decade as the Concept Style Coupe and now in its third series-production iteration – though since 2019 a more conservatively styled A-Class Sedan has also existed, that goes up against Audi’s A3 Sedan.
But we digress. Now there’s a “new” 2 Gran Coupe, coded F74, though it’s really a heavy facelift of the superseded F44. Oh, and the ‘i’ no longer exists in the badge, so (M-enhanced models aside) it’s just numbers from here on in. 218. 220. M235.
Regardless of names, does it live up to the BMW promise?
Peugeot has dropped its traditional petrol and PHEV options for a new mild-hybrid system in the next-generation 3008.
We’re testing the flagship GT Premium Hybrid, which brings fresh styling, upgraded tech and a premium cabin into one of the most competitive SUV segments, but is it enough to stand out?
The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.
More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.
A true BMW in name and nature, then..
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
The new Peugeot 3008 GT Premium Hybrid might not be the most spacious SUV for passengers, but it makes up for it with ample boot space and a standout design. It’s fresh-faced, interesting and packed with comfort features that elevate the everyday driving experience.
Is it expensive? Absolutely. But it also delivers a genuinely premium cabin that many rivals can’t match, along with refined on-road manners and efficiency that make it a pleasure to drive.
It doesn’t hit every note perfectly but there’s definitely a melody here worth listening to.
BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.
But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.
That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.
Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.
There’s a higher level of newness to be found inside.
The third-generation Peugeot 3008 boasts a striking silhouette, with coupe-like lines at the rear and well-proportioned overall dimensions that give it a confident, refined stance.
Signature Peugeot elements like the claw-inspired LED headlights and tail-lights lend it a distinctive, modern edge, which elevates its presence in a crowded SUV segment.
That said, the extensive use of black plastic cladding around the lower body detracts from the otherwise premium exterior and feels out of place.
Step inside and the cabin is easily one of the most captivating interiors I've been in recently. There's real design flair here: a multi-level centre console, sculpted ambient lighting panels that highlight the angular dashboard, and a rich, eclectic mix of materials. From quilted Nappa leather seats to textured grey knit fabric and brushed aluminium accents, it’s a refreshingly bold and beautifully executed space.
Add the panoramic sunroof and long equipment list, it's a cabin that you'll like to spend a lot of time in.
During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.
Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.
The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.
The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.
Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.
Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.
Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.
Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.
But, you know what is good enough? The engines BMW builds, that’s what.
The best part of the cabin is easily up front. There's generous space, and the seats are comfortable, even before you engage any of their functions. Longer trips have been a dream. I particularly enjoyed the massage settings, though the session durations felt a bit inconsistent.
Storage in the front is cleverly designed, with plenty of options: a sunglasses holder, a large glovebox, a phone shelf, a deep centre console and ample drink holders. It’s easy to keep the space tidy and organised.
Charging options are solid, with two USB-C ports, a 12-volt socket and a wireless charging pad.
The updated multimedia system has a screen that is wider than it's tall, making the icons small and easy to miss while on the go. I did tap the wrong one a few times!
That said, I appreciated the customisable quick-access and instrument panels, and connecting to the wireless Apple CarPlay was seamless. The touchscreen can be a little laggy, but overall the system is functional and intuitive once you're used to it.
Owing to its relatively short 4542mm length, rear legroom is tight, and the bench isn’t wide enough to comfortably seat three adults over long distances. This just makes it feel cramped for a mid-size SUV and it's something my eight-year old noticed straight away.
The seats are well-padded, though, and rear amenities are strong with directional air vents, heated outboard seats, two USB-C ports, a 12-volt socket and the usual cupholders and map pockets.
Boot space is generous at 520L with a flat load floor. The 48-volt battery means there's no spare tyre, but the powered tailgate with kick-function was a lifesaver during errand runs this week. For more flexibility, the rear row folds in a 40/20/40 split.
This depends on how much you buy into this being a sporty Gran Coupe rather than a small sedan.
From $59,900 (all prices are before on-road costs), the German-made front-wheel-drive 218 base grade is slightly cheaper than the previous 218i equivalent, yet gains more kit. It also matches the A200 Sedan and costs a bit more than the (also recently facelifted) A3 Sedan, while offering similar performance and equipment to both.
Along with a host of advanced driver-assist safety (ADAS) systems like adaptive cruise control – to be covered in more detail later on – the base 2 Series Gran Coupe comes with the M Sport styling package inside and out as standard.
You’ll also find goodies like adaptive LED headlights with auto high beams, adaptive dampers, keyless entry/start, a curved all-in-one 10.25-inch instrument display/10.7-inch centre control display using BMW’s latest OS9 system offering cloud-based navigation, an M Sport steering wheel, heated sports front seats, a head-up display, surround-view camera, wireless smartphone charger, Apple CarPlay/Android Auto, BMW Connected Drive with auto emergency call and other services, artificial leather upholstery, a 40:20:40-split backrest, an electric tailgate and 19-inch M-Sport alloy wheels.
From $62,900, the 220 ditches the 218’s 115kW 1.5-litre three-cylinder turbo petrol engine for a 150kW 2.0-litre four-pot turbo, while the 233kW M235 xDrive from $86,600 adds a lot more muscle to that 2.0-litre engine, all-wheel drive, more ADAS tech, massaging front seats, a Harmon/Kardon audio upgrade, uprated brakes, a panoramic sunroof, a heated steering wheel, rear spoiler and higher-gloss trim.
Many of those items are available with a $6700 Enhancement pack on the lower grades.
These more-or-less line up with rival premium small sedans.
Note, though, that they are expensive compared to fine mainstream C-segment alternatives costing far less, like the Subaru WRX, Toyota Corolla hybrid and Mazda3. Or Hyundai’s criminally underrated Ioniq 6 EV. Labels, eh!
Still, for some folk, the 2 Series Gran Coupe’s swoopier silhouette might make it seem like more of a rival to the sleeker CLA than a mere A200/A3 competitor, and that Benz kicks off from about $15K more than the 218. If that’s you, the BMW might be construed as a bit of a bargain.
Since we’re talking about styling, let’s take a deeper dive into the F74’s newly minted looks.
The new 3008 has a streamlined line-up of only two grades, at least for now, and we’re in the flagship GT Premium Hybrid for this review.
The third-generation 3008 has a new mild-hybrid powertrain, which pairs a turbocharged petrol three-cylinder engine with a small electric motor and a 48-volt battery. A fully electric version exists overseas but is yet to be confirmed for Australia.
Our test model competes with popular mid-size SUV rivals like the Mazda CX-5 Akera, which starts at $55,150 before on-road costs, and the Toyota RAV4 Cruiser 2WD, which sits at $51,410.
With its $64,990 price tag, the new 3008 GT Premium Hybrid is the most expensive option, which might only appeal to fans of the brand.
However, the GT Premium is very well-specified with massaging and heating functions for the electric front seats, a panoramic sunroof, a 10-speaker Focal sound system and a 3D sat nav with connected services, where you can get information like local car park pricing, as well as over-the-air updates.
Other premium features include ventilated front seats and heated rear outboard seats, which are new for this model.
But the biggest change inside is the new 21-inch display, which houses the updated multimedia system and digital instrument cluster.
There are other new features like wireless Apple CarPlay and Android Auto, and an upgraded panel for your quick access menu widgets (up to 10 widgets can be customised).
Other features include a handsfree powered tailgate with kick functionality, keyless entry and start, four USB-C ports, a wireless charging pad, a tyre repair kit, a panoramic sunroof and surrounding ambient lighting.
Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.
The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).
With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.
Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.
Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.
As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.
If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.
All grades of the 3008 are powered by the same mild-hybrid setup, featuring a 1.2-litre three-cylinder turbo-petrol engine that's paired with a small electric motor and a 48-volt battery. Power is sent through a six-speed dual-clutch transmission, with the system delivering combined outputs of 100kW of power and 230Nm of torque.
Performance is modest, with a 0-100km/h sprint time taking 10.2 seconds. It’s perfectly adequate for everyday driving around town and in traffic, but the lack of urgency becomes more noticeable when overtaking at highway speeds. Still, the hybrid system offers smoother low-speed acceleration and improved efficiency over the outgoing petrol-only model.
OK, so is the 2 Series Gran Coupe cheap to run?
BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.
Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.
Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.
Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.
The new mild-hybrid powertrain brings a solid improvement to efficiency, with an official combined fuel consumption of 4.9L/100km. Paired with a 55-litre fuel tank, that delivers a theoretical driving range of up to 1122km, which is an impressive figure for a mid-size SUV.
Over the past week, I’ve done a mix of longer highway drives, urban errands and the usual big grocery hauls. My real-world average came in at 6.1L/100km, which is still a strong result for this segment.
The system also features regenerative braking, which while not customisable, is noticeable in everyday driving. It kicks in strongly enough to give the sensation of heavy braking at times, particularly in city traffic and it reminds you that it's working behind the scenes to recover energy.
Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.
And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.
Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.
For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.
Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.
Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.
To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.
What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.
It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.
As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.
So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.
For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.
The 3008 has been genuinely enjoyable to drive. It’s easy to handle, with responsive steering and a stable, confident feel at higher speeds. The transmission generally keeps the powertrain in the right gear, only occasionally over-revving during open-road driving.
Power delivery is prompt enough for stop-start traffic and quick city lane changes. That said, there's a noticeable dip in performance when overtaking on the highway and it’s a clear reminder that this isn’t a high-output powertrain.
Visibility is generally good, though the narrow rear window can limit your view, especially when passengers or a child seat are in the back. Still, the pillars didn’t obstruct my view from the driver’s seat.
The suspension is on the firmer side, so you will feel the larger bumps, but it strikes a decent balance for everyday driving.
There’s a bit of body roll when cornering, which prevents it from feeling as sporty as its coupe-inspired design might suggest.
Parking is a breeze thanks to the clear 360-degree camera system, ample sensors and a tight 10.64m turning circle. My only gripe is that the rear camera points slightly downward, which can make the view feel narrower than expected.
The latest, F74 2 Series Gran Coupe scores neither an ANCAP nor EuroNCAP rating at this stage, but its F44 predecessor managed a five-star result back in 2019.
For the latest version, BMW is highlighting an elevated level of advanced driver-assist safety (ADAS), including lane-change/departure alerts, forward collision warning and automatic emergency braking tech that detects vulnerable road users like pedestrians and cyclists, rear cross-traffic warning, exit warning, adaptive cruise-control with full stop/go functionality, blind-spot monitor and traffic-sign speed-limit alerts.
No information on AEB operating parameters is available as yet for the F74, but the earlier series’ low-speed AEB worked from 8km/h to 85km/h and inter-urban AEB kicked in between 5-80km/h, while the lane-support systems functioned from 70-210km/h.
Tyre-pressure warning, 360-degree surround-view cameras and six airbags are also included, along with Parking Assistant Plus that brings sensors, automatic parking, a reverse assistant that automatically retraces the last 50 metres travelled and a drive recorder.
Note that the 218 misses out on the 220/M235 grades’ ADAS-related crossroads warning, evasion assistant tech, lane-keeping assist with active side-collision prevention and front as well as rear cross-traffic warning. These are available in the aforementioned Enhancement Pack, but at this lofty price point, they should be standard.
Finally, there are ISOFIX child-seat anchorages in the rear-seat outboard positions, along with a trio of child-seat tether latches.
At the time of writing, the 3008 is untested and unrated by ANCAP, which may be a consideration for some buyers. It also features just six airbags, missing a front centre airbag — a growing standard in many newer rivals.
On the plus side, Peugeot has added several useful driver assistance features, including forward collision warning, long-range blind-spot monitoring and lane departure warning.
Other standard features include autonomous emergency braking, lane-keeping aid, lane-following assist, driver attention alert and monitoring, traffic sign recognition, rear cross-traffic alert and adaptive cruise control with stop and go functionality.
There are also child locks on the rear doors, an intelligent seatbelt reminder, front passenger detection and tyre pressure monitoring. Most of these systems operate quietly in the background and don’t feel overly intrusive, which I always appreciate.
However, I did encounter a concern with the autonomous emergency braking system. During a close call when another driver blew through a roundabout in front of me, the system didn’t alert or react — no sounds, no warnings. It was a surprising omission, especially in a moment where you’d expect the tech to step in.
The rear row has ISOFIX child seat mounts and three top-tether anchor points but two seats will fit best.
Here, however, is where BMW can do a bit better.
While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.
Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.
BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.
The 3008 comes with a five-year/unlimited-kilometre warranty, which is okay but now feels a bit basic, especially when rivals like Nissan offer up to 10 years of coverage (under specific servicing conditions).
Peugeot also provides a five-year capped-price servicing plan, or you can opt to pre-purchase servicing for three, four or five years. The five-year pre-paid plan comes in at $1890, which works out to be more affordable than sticking with the capped-price option.
Servicing intervals are every 12 months or 25,000km, whichever comes first. That’s quite generous, particularly if you rack up a lot of kilometres annually.