BMW M135i vs BMW M235i

What's the difference?

To answer the question of whether it matters that the new 1 Series is no longer rear-wheel drive, I say no it doesn’t. It may not be as romantic on the absolute limit, but it is better in every measurable way, and still feels distinctly BMW despite moving to the conventional layout of its rivals. 

Be sure to check out Mal’s video review from the 1 Series launch last December:

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.

Yes, that kidney grille is rather large. If you want everyone to know you drive a BMW, you’ll love it. If not, get used to it. The X7, recent 7 Series update and upcoming 4 Series suggest they’re only going to get bigger. 

Nose aside, the 1 Series hatch has always had a distinctive, long-bonnet profile, which has generally been attributed to the rear-drive layout. Despite the move to a transverse engine, the new one is actually very close in proportions when compared side by side.

It’s just 5mm shorter in overall length and 13mm taller, with body width being the most notable change at 34mm wider. 

The key difference is that the front and rear wheels have been moved further back into the body, because of said engine layout change, and to make more back seat space in the rear.

Surprisingly for a model aimed at a younger demographic, the new 1 Series interior design isn’t quite the same step forward as the recent G20 3 Series.

It’s a cut above the X1 and X2 SUVS the new 1 Series shares its underpinnings with in terms of the shapes used, but is still classic understated BMW. 

However its headline act is the Live Cockpit driver display on both models, which gives you fully digital instrumentation and replaces traditional analogue gauges once and for all.

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.

With my modest 172 cm height, I never had any trouble with the old model, but the new 1 Series is a bit more more spacious by all the important measures.

The back seat base and backrest are a bit flat though, which is probably to help the backrest fold almost flat, but probably not very supportive during hard cornering.

There's also no centre armrest in the back or cup holders, but you do get bottle holders in the doors.

You also get two ISOFIX child seat mounts and there’s two USB-C charge points in the back of the centre console, but there's no directional air vents unless you opt for the dual-zone climate control that comes standard with the M135i. 

The boot has grown by 20-litres to a pretty impressive 380 litres VDA which includes a very useful cavity under the floor instead of a spare tyre. An inflation kit is there for those duties. With the back seat folded flat, boot space expands to 1200 litres VDA. 

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.

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.

Both cars use versions of the three and four cylinder petrol engines from before, with the popularity of automatics leaving the previous manual option consigned to history.  The 118i’s 1.5-litre turbo three cylinder now produces 103kW/220Nm, with max torque available all the way from 1480-4200rpm. The 118i now uses the seven-speed dual clutch automatic transmission, as seen on Mini models that use the same engine. 

The M135i’s 2.0-litre turbo has been tweaked to take the place of the six-cylinder M140i from the last model and now produces 225kW/450Nm, with max torque available all the way from 1750-4500rpm. Its auto remains a torque converter though, but now the transverse-mounted unit also shared with Mini models with the same engine and splitting drive to all four wheels via the xDrive system for the first time. The drive split is constantly variable, but the rear bias tops out at 50 per cent and the only limited slip diff is an electric unit on the front axle.

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.

Official combined fuel consumption is a decent 5.9L/100km with the 118i, but the M135i steps up to 7.5L/100km) 2.0 litre four in the m135i. Both engines require premium unleaded. 

Fuel tank sizes vary across the two models also, with the 118i measuring 42 litres and the M135i managing 50 litres, despite its need to package rear drive components somewhere under there also. 

This results in a decent theoretical range between fills of 711km for the 118i and 666km for the M135i. 

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.

For a brand with a marketing slogan of pure driving pleasure, this is the important part, particularly given the new 1 Series has lost its rear wheel drive USP. 

Why do some of us love rear wheel drive? It tends to be more fun when you're driving on the limit, and generally makes for nicer steering because you're only using the front wheels to turn corners.

So how does the new 1 Series drive? That depends on which version. 

The 118i is quite a nice package really. It rides a bit more gently than what I remember in the A-Class and generally feels more like a premium product. It also feels a step ahead of the 2 Series Active Tourer it shares its underpinnings with, which is a good thing.

The three-cylinder engine is quite smooth for a fundamentally unbalanced triple, and it makes enough power to get you out of trouble. 

Do you miss rear wheel drive? Not really, as you can only tell the difference when you're going real fast, which let's face it, is not somewhere 118i drivers are likely to go very often. 

The M135i is a vastly different beast, as you'd expect. Aside from being real quick, it's that much tighter everywhere, but still definitely on the more comfortable side than what we expect the future full house M version to be.

The continuously variable xDrive all-wheel drive system does a great job of putting its power down, but the rear bias maxes out at 50 per cent, which is probably spot on for chasing lap times, but means you miss out on the tailiness of the old one altogether. 

So it’s not as classically fun as the old M140i, but it’s easily faster, and that's what will probably matter most to most buyers. 

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 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.

BMW is yet to step up to the five year warranty offered by most mainstream brands and now Mercedes-Benz and Genesis, continuing with the three year/unlimited coverage matched by Audi. 

As always, BMW describes the service intervals as condition based, and the car will alert the driver when a service is due. This will occur at least every 12 months though, but individual intervals will vary based on how the car is driven. 

This can all be bundled into five year/80,000km service packs though, with the Basic pack costing $1465, but the Plus pack adds brake pad and disc replacement to regular fluids and consumables for $3790. Assuming 12 month intervals, these prices are about average for a premium branded product. 

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.