BMW 218i vs Volkswagen Arteon

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.

The value, driving dynamics and appearance are on point for a premium play here. If you can forgo the badge snobbery attached to the German big three, then you'll find lots to like about Volkswagen's Arteon.

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.

It's really all about the looks here, and while the Shooting Brake is particularly handsome, the regular Arteon looks premium and polished, too.

VW tells us injecting a bit of sportiness was a key aim here, both inside and outside, and that's particularly true of the R-Line model, which rides on bigger 20-inch alloys, compared to the 19s on the Elegance, with their own bespoke design.

The body styling is more aggressive, too, but both trims get lashings of chrome along the body work, and a sleek, swept-back style that looks more premium than overtly sporty.

In the cabin, though, you can see that this is an important car to VW. The touchpoints are almost all soft to the touch, and it's both understated and tech-saturated at the same time, including the swipe-to-adjust function for the stereo and climate, with new touch-sensitive sections added to the centre console and steering wheel.

It feels, dare we say it, premium. Which is likely exactly what VW was going for...

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.

Interestingly, both body styles share near identical dimensions, with the Arteon stretching 4866mm in length, 1871 in width, and 1442mm in height (or 1447mm for the Shooting Brake).

Those numbers translate to a seriously spacious and practical cabin space, with an acreage of room for backseat riders. Sitting behind my own 175cm driving position, I had heaps of space between my knees and the seat in front, and even with the sloping roofline, plenty of headroom, too.

You'll find two cupholders in a pull-down divider that separates the back seat, and a bottle holder in each the four doors. Backseat riders also get their own air vents with temp controls, as well as USB connections, and phone or tablet pockets on the rear of each front seat.

Up front, the theme of space continues, with storage and cubbies sprinkled throughout the cabin, as well as USB-C connections for your phone or devices.

All that space means a sizeable boot area, too, with the Arteon serving up 563L with the rear seats in place, and 1557L with the back pews folded. The Shooting Brake ups those numbers - thought not any as much as you might think - to 565L and 1632L.

The Arteon carries an unsurprisingly premium price tag in the VW family, but it can still be cheaper than an entry-level equivalent from some of the German premium brands.

Or, in the words of VW, the Arteon "challenges the luxury car makers without becoming one ourselves."

And you do get a lot of stuff. In fact, a panoramic sunroof, and some metallic paints, are the only cost options here.

The range is offered in 140TSI Elegance ($61,740 Liftback, $63,740 Shooting Brake) and 206TSI R-Line trims ($68,740/$70,740), and the former is offered with VW's Virtual Cockpit digital instrument cluster, along with a head-up display and a central 9.2-inch touchscreen that pairs wirelessly with your mobile phone.

Outside, you get 19-inch alloy wheels and full LED headlights and tail-lights. Inside, you'll find ambient interior lighting, multi-zone climate control, keyless entry and push-start ignition, as well as full leather interior trim with heated and ventilated front seats.

Also worth calling our here are the digital buttons on the dash or steering that control everything from the stereo to the climate, and work a bit like a mobile might, you can swipe left or right to control the volume or switch tracks, or change the temperature.

The R-Line model is the sportier-feeling option, and adds 'carbon' leather interior trim with bespoke bucket-style sports seats, 20-inch alloy wheels, and a more aggressive set of R-Line bodywork.

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.

There are two drivetrains on offer here — the 140TSI with front-wheel drive in the Elegance, or the 206TSI with all-wheel drive in the R-Line.

The former's 2.0-litre turbo-petrol produces 140kW and 320Nm, which is enough for a sprint to 100km/h in around 7.9 seconds.

But the lust-worthy engine tune is definitely the R-Line, in which the 2.0-litre turbo-petrol ups the grunt to 206kW and 400Nm, and drops the sprint time to a brisk 5.5 seconds.

Both pair with VW's seven-speed DSG automatic.

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.

Volkswagen says the Arteon Elegance will need 6.2L per hundred kilometres on the combined cycle, and will emit 142g/km of C02. The R-Line needs 7.7L/100km on the same cycle, with emissions pegged at 177g/km.

The Arteon is fitted with a 66-litre tank, and a PPF or petrol particulate filter, which strips some of the nasties out of the vehicle's emissions. But, VW says, it's “very important" that you only fill your Arteon with premium feel (95RON for the Elegance, 98RON for the R-Line) or you risk shortening the life of the PPF.

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.

Full disclosure: we only spent time behind the wheel off the R-Line variant for this test, but even still, I feel pretty comfortable suggesting that it's the punchy powertrain you want.

Surely the very first hurdle any company hoping to play with the premium-brand big boys must clear is that of easy, effortless momentum? It's difficult to feel like you've made the premium choice when you're engine is straining and striving under acceleration, right?

And on this, the Arteon R-Line shines, with plenty of power underfoot whenever you need it, and a delivery style which means you rarely, if ever, fall into a hole waiting for the power to arrive.

For mine, the suspension might be a touch too firm for those seeking a truly wafting drive experience. For the record, it doesn't bother me — I always prefer to know what's happening underneath the tyres than be entirely removed from the experience — but a result of this sporty-feeling ride is the occasional registering of bigger bumps and road imperfections in the cabin.

The flip side of the firm(ish) ride is the ability for the Arteon - in R-Line guise - to swap personalities when you engage its sportier settings. Suddenly there's a snarl to the exhaust that's absent in its comfortable drive modes, and you're left with a vehicle that tempts you to head for a twisting back road to see what it's about.

But in the interests of science we instead headed for the freeway to put the Arteon's autonomous systems through their paces, with the brand promising Level 2 Autonomy on the highway.

While the technology still isn't perfect — some braking can occur when the vehicle's not entirely sure what's happening ahead of it — it's also pretty impressive, taking care of the steering, accelerating and braking for you, at least until you're reminded its time to put your hands back on the wheel.

It's also bloody big, the Arteon, with more space in the cabin - and especially the backseat - than you might be thinking. If you have kids, they'll be positively lost back there. But if you cart adults on the regular, then you'll hear no complaints.

Essentially, if VW makes it, the Arteon gets it. Think front, side, full-length curtain and driver's knee airbags, as well as VW's complete IQ.Drive safety suite, which includes a Fatigue Detection system, AEB with pedestrian detection, Park Assist, parking sensors, rear traffic assist, lane change assist, adaptive cruise control with lane guidance - which is essentially a level 2 autonomous system for highways - and an around view monitor.

The new model is yet to be crash-tested, but the last model scored a five-star rating in 2017.

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 Arteon is covered by VW's five-year, unlimited-kilometre warranty, and will require servicing every 12 months or 15,000kms. It will also get VW's capped price servicing offer.