BMW 218i vs Volkswagen T-Cross

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.

There are so many new little SUVs out there and it might be easy to think they’re all the same - a tiny cheap SUV is just a tiny cheap SUV. But I’m convinced the Volkswagen T-Cross isn’t like the others.

Yes, it’s tiny and relatively cheap, but it can do more than most of the others from the storage and space it offers to the value-for-money and its level of refinement. Then there’s the way it drives - which can’t in my books be matched by any of its rivals.  

The sweet spot in the range is the entry grade Life. At $35K drive-away the value is best and with no difference in engines between the grades there are no huge reasons to step up higher in the range unless you have the money.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

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 T-Cross is Volkswagen’s smallest SUV at 4.1m long and even though it’s closely related to the little Polo hatchback it looks more like a mini version of the Tiguan.  

It might be tiny and relatively affordable but it has Volkswagen’s premium looks and sharp styling, with creases in the panels so crisp it looks like somebody just ironed it.

This update has brought new front and rear bumper designs, and new styling to the LED running lights and tail-lights. That’s typically how car companies do exterior design updates, inside the styling changes are pretty minimal, too.

There’s new dashboard design and new media screen, but again the design and quality feels refined and high quality, which I can't say goes for a lot of this car's rivals.

The entry-grade Life misses out on the cross design tail-lights of the Style and R-Line, and gets hubcaps rather than alloy wheels like the other two grades.

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.

You really should take a look at my video to get an idea of how good space and storage is in the T-Cross. I’m tall at 189cm but I can drive with plenty of elbow room and legroom. The front seats also have really long bases which offer great under-thigh support, too.

Legroom in the back is great for the class and I can sit behind my driving position without my knees touching the seatback, while headroom is excellent, too. The second row also slides on rails to increase the boot side which is enormous for the class at 455L.

The second row doors also have large apertures making entry and exit easier.

Cabin storage is great with giant door pockets in the front and back, a wireless phone charger with four USB-C ports (two in the front and two in the second row).

There are three grades in the T-Cross line up, the entry level Life which lists for $33,990, the Style for $37,490 and at the top of the range is the R-Line for $40,990.

At the time of the launch of this updated T-Cross, Volkswagen was doing drive-away pricing of $34,990 for the Life, $39,990 for the Style and $43,990 for the R-Line.

Compared to rivals like the Mazda CX-3 and Toyota Yaris Cross, a drive-away price of $35K for the Life is excellent and $40K for the Style is also a good deal, especially when you look at the healthy standard features list.  

Coming standard on the Life are LED headlights, black roof rails and power folding mirrors, there’s a leather steering wheel, a digital driver display (which is new, too), there’s an 8.0-inch media screen, wireless phone charging, air con, digital radio, Apple CarPlay and Android Auto.

Stepping up into the Style grade adds 17-inch alloys wheels, matrix LED headlights - those are new - chrome-look roof rails, an LED grille strip, proximity unlocking, dual-zone climate control, sat nav, and a new, larger digital driver display. The Style also gets the fancy 'cross' LED tail-lights like the R-Line grade above it.

The R-line is a new model sitting at the top of the line-up and it comes with sporty R-Line exterior styling plus 18-inch alloy wheels and dark tinted rear windows. Inside there’s R-line interior styling, 'Drive Modes' and a Beats sound 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 T-Cross has a 1.0-litre three-cylinder engine which sounds tiny and it is, but it's turbo-charged and the 85kW/200Nm it produces is plenty of grunt to move this little SUV which at just under 1.3 tonnes is relatively light. 

All grades in the T-Cross line-up have this same engine and there’s no high-performance variant, although the R-Line has selectable drive modes. Every T-Cross is front-wheel drive with a seven-speed dual-clutch auto transmission. 

This three-cylinder is a mighty little beastie with a growly tone to it. There is some turbo lag during stop-start city driving, but it’s so eager to play that if it was a dog it’d be a Jack Russell with every intention to chase anything it sees but no idea how small it is.

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.

Smaller engines use less fuel than larger ones and the 1.0-litre three-cylinder in the T-Cross is little and Volkswagen says over a combination of open and urban roads it uses 5.6L/100km.

That’s fuel efficient but these days larger SUVs with hybrid systems are achieving the same low consumption. Toyota’s Yaris Cross is available with a hybrid system and will use about 3.8L/100km.

Volkswagen doesn’t have a hybrid version of the T-Cross, but it should, especially given these little cars will spend more time in urban environments where fuel consumption will generally be higher.

That said, most tiny SUVs don’t have hybrid systems so that makes the Yaris Cross exceptional while the T-Cross is about average.

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.

Quite possibly the best little SUV to drive for this price and size, the only drawback is that there’s a touch of lag in the time it takes the power to arrive at low speeds in stop-start traffic, but that can be remedied by putting the transmission in 'Sport' mode.

The steering is light and accurate, the visibility is excellent thanks to the big windows and raised ride height, the pedal feel under your feet is great and the brakes are responsive.

The car feels stable, planted and secure whether it's on a motorway, or a winding country road, while the little 1.0-litre engine is a champion that keeps punching with a throaty growl that matches its enthusiasm.

The seven-speed transmission is superb and changes gears fast, while the paddle shifter lets you take control to keep the revs high.

These little SUVs aren't sports cars but some are so underwhelming to drive it feels like performance was never thought about while developing the vehicle.

But the T-Cross made me grin until my face hurt on the steep winding hairpin filled roads we tested it on at its launch. 

The T-Cross was given the maximum five-star ANCAP rating in 2019. What is truly great is that on every grade you’ve got AEB, adaptive cruise control, lane keeping assistance, rear cross-traffic alert, manoeuvre braking, plus front and rear and parking sensors. 

For child seats there are three top tether anchor points and two ISOFIX points in the second row.

A space saver spare wheel can be found under the boot floor.

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 T-Cross is covered by Volkswagen’s five-year unlimited kilometre warranty.

Servicing is recommended every 15,000km or yearly and while there’s no capped price servicing you can buy a five-year plan for $2800, which equates to $560 per workshop visit.