BMW 218i vs Subaru XV

What's the difference?

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.

Even years on from its initial launch and with only subtle changes to its main range, it’s really to Subaru’s credit that the XV feels just as capable and modern as any of its rivals.

This is not to say it’s perfect. We can’t recommend the base model, the maths don’t really work out on the hybrids, the only available engine is breathless, and it has a small boot.

But the XV’s excellent safety suite, driving dynamics, all-wheel-drive capability, quality finish and comfortable interior mean it’s hard not to be charmed by this little lifted hatch.

Our pick of the range? While the 2.0i-L is great value, we’d recommend you splurge to the 2.0i-Premium to get the full safety suite and extra garnish.

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 key to the XV’s fun and adventurous appeal is perhaps the fact that it’s not really an SUV at all. It’s rather obviously a lifted version of the brand’s Impreza hatchback, and this is to its credit.

It’s simple but tough, cute but capable, and really everything many consumers are looking for when it comes to a small, all-wheel-drive SUV. Not only does this design philosophy (of lifting wagons and hatches rather than creating bespoke “SUVs”) match Subaru’s family of products, but the ride height, plastic claddings, and tough-looking alloys offer hints of the all-wheel-drive capability that lies beneath.

Little has changed for the 2021 model year, with the XV most recently receiving a tweaked grille, updated front bumper, and a new set of alloy wheels. The XV range is also available in a fun array of colours, which Subaru hopes will help it win more of a youth vote. As an added bonus, none of the colour choices carry an extra charge.

The interior of the XV continues the fun and adventurous theme with Subaru’s signature chunky design language noticeably different from its rivals. My favourite element of this has always been the bumper-car steering wheel, which feels great in your hands in its leather-clad finish, but there are also nice soft claddings throughout the doors and big seats with nice bolstering and design.

While we like how big and sharp the main 8.0-inch screen is, if there’s one thing Subaru gets wrong it’s how busy the whole cabin package is. The visual assault of three screens seems unnecessary, and as much as I like the wheel, it is also completely adorned in somewhat confusingly labelled buttons and toggles.

Still it’s an attractive, fun, and unique design amongst its small SUV peers. Subaru fans, at least, will be sure to adore it.

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.

In some ways the XV is very impressive when it comes to its interior practicality, but in other ways it disappoints.

The front seats offer heaps of room for adults with good adjustability, and while the seating height is very high by default, there’s still lots of headroom and adjustability, with the added benefit of a very commanding view of the road for such a small SUV.

As mentioned, the doors, dash, and transmission tunnel are all clad in soft materials, and front passengers also benefit from no less than four USB ports in every grade except the base 2.0i, a huge centre console box, comfortably large bottle holders in the centre with a removable divider, a small bay under the climate unit that also houses a 12v outlet and auxiliary input, and a single large bottle holder in the doors with a small adjoining bin.

A surprise comes in the rear seats, which offered enough head and knee room for a particularly tall friend of mine. It’s rare for the small SUV segment to offer such space, but behind my own (182cm tall) seating position I had ample airspace for my knees and decent airspace for my head too, even despite the Premium and S grades having a sunroof fitted.

Rear passengers get a flip-down armrest with bottle holders, a small bottle holder in the doors, and pockets on the backs of the seats. The seat cladding is just as good as it is in the front, and the width in the rear seats is notable, however the centre seat suffers from the existence of a tall transmission tunnel to facilitate the all-wheel-drive system, and there are no adjustable air vents or power outlets for rear passengers either.

Finally, one ongoing weak point for the XV is the amount of boot space on offer. Boot capacity is 310-litres (VDA) for non-hybrids or 345 litres for hybrid variants. This is decent when compared to smaller light SUVs but definitely leaves room for improvement when it comes to the XV’s main small SUV competitors.

Space can be boosted to 765L in non-hybrid or 919L in hybrids with the seats down (again, not great), and the hybrid model loses the underfloor space-saver spare wheel, instead leaving you with a very compact puncture-repair kit.

Subaru’s pricing strategy is an interesting one. Generally, the brand’s entry-level models are priced above rivals, but top out well below them. For 2021 the XV range has four variants, two of which are available with the hybrid-drivetrain option.

The entry-level XV 2.0i ($29,690) sits above the entry-level Hyundai Kona ($26,600), Kia Sportage ($27,790), and Honda HR-V ($25,990). Keep in mind, the XV range is all-wheel drive by default, which is a value boost, but the unfortunate news is that we’d recommend you ignore the base XV altogether.

Included on the base 2.0i are 17-inch alloy wheels, a 6.5-inch multimedia touchscreen with wired Apple CarPlay and Android Auto connectivity, a 4.2-inch supervision cluster and 6.3-inch function screen, basic air conditioning, a single USB port, basic cloth seats, halogen headlights, standard cruise control, and some more basic trimmings. Not only is this car the only one with the more basic multimedia screen, but crucially it misses out on any of Subaru’s excellent EyeSight safety suite.

The starting point for your XV journey, then, should really be the 2.0i-L, starting at $31,990. The 2.0i-L ups the interior to include a dazzling 8.0-inch multimedia screen, improved interior trimmings with premium cloth seats and leather-trimmed steering wheel, dual-zone climate control, extra USB ports, and adaptive cruise control as part of the EyeSight safety suite.

Next up is the 2.0i-Premium at $34,590, which adds a sliding sunroof, heated wing mirrors, built-in navigation, a front-view camera, and the full safety suite with blind-spot monitoring, rear cross traffic alert, and rear auto emergency braking. This variant is now the best value, as it offers the full set of safety items previously only available on the top-spec car at a lower price.

This brings us to the top-spec 2.0i-S with an MSRP of $37,290, which adds LED headlights with auto high-beam assist, a side-view camera, leather interior trims with extended premium cabin upholstery and chrome finishes, auto power folding wing mirrors, leather-appointed seat trim with heated front seats and an eight-way power-adjustable driver’s seat, 18-inch alloy wheels, and extended functionality for the all-wheel-drive system.

Finally, the 2.0i-L and 2.0i-S can be chosen with the “eBoxer” hybrid drivetrain option, wearing MSRPs of $35,490 and $40,790 respectively. They mirror the specification of their 2.0i counterparts while adding silver exterior accents and a pedestrian-alert system. They also trade out the space-saver spare wheel in favour of a puncture-repair kit, due to the presence of an under-boot-floor lithium-ion battery system.

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.

The XV now has two drivetrain options in Australia. One is the carryover 2.0-litre petrol engine, now with a smidge more power, and a hybrid version of the same layout with an electric motor housed in the continuously variable transmission. There is no manual variant in the XV range.

The 2.0i models produce 115kW/196Nm, while the hybrid produces 110kW/196Nm from the engine and 12.3kW/66Nm from the electric motor. All variants are all-wheel drive.

The hybrid system is powered by a lithium-ion battery pack under the boot floor, and in practice functions a bit differently from Toyota’s popular system.

We’re sure Subaru die-hards will be dismayed to know a version of the XV packing the larger Forester’s 2.5-litre petrol engine (136kW/239Nm) will not be making it to Australia for the foreseeable future.

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.

It’s not such a great story for the hybrid variant here, as even on the official numbers it only saves a tiny amount of fuel.

The official/combined number for 2.0i variants is 7.0L/100km, while the hybrid variants trim this to 6.5L/100km.

In practice it only got worse on my test. Over similar driving conditions consisting of several hundred kilometres over the course of a week, the 2.0i-Premium non-hybrid produced 7.2L/100km, while the hybrid actually used more fuel at 7.7L/100km.

It’s worth noting we’ll be holding on to the hybrid for a further three months as part of a long-term urban test. Check back in to see if we can trim this number down to something closer to its claim in the coming months.

All XV variants can drink base-grade 91RON unleaded and 2.0i variants have 63-litre fuel tanks while hybrids make use of a 48-litre tank.

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.

No matter which XV you choose, you’ll be getting a very comfortable and easy-to-steer small SUV, and the drive experience has only improved with this year’s updates.

The XV’s newly re-worked front suspension and tall ride height make for a package more than capable of dealing with anything the suburbs will throw at it. This is the kind of car that scoffs at speed bumps and potholes.

The steering is light enough to be comfortable, but provides just enough feedback to keep it engaging, too, and the always-on all-wheel-drive system provides a sense of constant security in corners and even on loosely sealed or wet surfaces.

The XV has better SUV cred than almost every other car in its class on the capability front, enough at least to make it a decent companion for seeking those unsealed campgrounds or vantage points.

Where it’s not as good is its engine options. We’ll get to the hybrid in a moment, but the standard 2.0-litre engine is underpowered for a relatively heavy small SUV, with the added burden of all-wheel drive, and it feels it. This engine doesn’t have the follow-through of its turbocharged rivals and is very thrashy when much is asked of it.

This experience isn’t really helped along by the rubbery-feeling continuously variable automatic transmission, which is at its best in stop-start traffic. It strips the fun out of trying to drive this car with a bit more vigour.

Unlike Toyota's hybrid alternatives, the hybrid XV isn’t a significantly different experience behind the wheel. Its electric motor doesn’t really have enough strength to get it up to speed, but it does assist when it comes to acceleration and coasting to help take the stress partially off the engine. The XV also doesn’t provide a hybrid indicator like Toyota does, so it’s much harder to understand the effect your accelerator input is having on the motor.

The centre screen does display the energy flow, though, so it is good to have some kind of feedback that the hybrid system is helping on occasion.

Hybrid variants also add something called “e-Active Shift Control”, which uses input from the car’s sensors and all-wheel-drive system to better tune the hybrid assistance to the CVT. In general driving terms, this lets the electric motor pick up the slack of the petrol engine when it's most needed in the corners and in low-torque instances.

On a final note, all of these moments of electrical assistance do make the hybrid versions notably quieter than the non-hybrid ones. I still wouldn’t recommend choosing the hybrid on its driving experience alone, but it will be interesting to see how Subaru can build on this technology in the future.

The XV has an excellent safety suite so long as you avoid the base model 2.0i. Every other variant gets at least the forward-facing and unique stereo camera safety suite, which Subaru dubs ‘EyeSight’.

This system provides auto emergency braking up to speeds of 85km/h capable of detecting pedestrians and brake lights, it also includes lane-keep assist with lane-departure warning, adaptive cruise control, and a lead vehicle start alert. All XVs get an excellent wide-angle reversing camera.

Once you get to the upper-mid-grade 2.0i Premium, the safety suite is upgraded to include rear-facing technologies, including blind-spot monitoring, rear cross traffic alert, and rear auto braking. The Premium gets a front-facing parking camera, while the top-spec S grade gets a side view camera as well.

All XVs come with the expected stability, brake, and traction controls, as well as a set of seven airbags, making for a maximum five-star ANCAP safety rating to the 2017 standards.

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.

Subaru remains on par with other Japanese automakers, with a five-year and unlimited-kilometre warranty promise. There’s 12 months of roadside assist included, and the XV is also covered by a capped-price servicing program for the life of the warranty.

Services are required once every 12 months or 12,500km, and while this is a welcome improvement on the six-month intervals this car used to have, these visits are far from the cheapest we’ve seen with an average price of nearly $500 per year.