1998 BMW Z Models Reviews

The new BMW 3 Series and i3 are both timed to arrive around the same time in the first few months of 2027. When they rock up in dealerships, they will land with pricing that might confuse some consumers. On the petrol side, the range kicks off with the entry 320 that is priced from $83,900 plus on-road costs, while the flagship and sportiest petrol, the M350 xDrive, costs $128,900 (plus ORCs). Those prices make them between $4200 and $2500 cheaper than the higher-riding X3 SUV, which makes sense. The all-electric BMW i3, meanwhile, is for some reason more expensive compared to the iX3, with the i3 40 xDrive costing $96,900 (plus on-roads), while the flagship i3 50 xDrive costs $112,900 – making them $7000 to $7400 pricier than the mechanically similar, but more spacious battery-powered mid-size SUV. In the case of the 40 grades, that may be because the iX3 40 is rear-wheel drive rather than all-wheel drive. But still, it's a big difference. Also likely to undercut the BMW i3 is its closest rival, the Mercedes C-Class Electric, with the quicker, more powerful C400 4Matic flagship priced from just $105,700, a cool $7200 less than the BMW i3 with the bigger battery and more powerful motors. The combustion-powered BMW 3 Series and all-electric BMW i3 will initially just be offered with two powertrains each. On the petrol side, the range will kick off with the 320 that comes with a turbocharged 2.0-litre four-cylinder mild hybrid that produces 155kW and 330Nm of torque for a 7.4 second 0-100km/h sprint. Sitting above that is the fast M350 xDrive, which pairs a turbocharged 3.0-litre inline six-cylinder mild-hybrid that produces 326kW and 580Nm of torque. Off the line, thanks to traction-boosting all-wheel drive, 0-100km/h takes just 4.1 seconds. The all-electric BMW i3, meanwhile, comes with dual motors that provides for all-wheel drive. The entry i3 40 xDrive produces 275kW and 520Nm of torque, for a 5.4-second 0-100km/h dash, while the punchier i3 50 xDrive dishes out an impressive 345kW and 645Nm of torque for a brisk 4.7 second sprint to 100km/h. Arriving later will be lower-powered single-motor versions, plus a faster-still i3 M60 xDrive that gets an uprated rear motor that raises its combined output to 450kW and 875Nm of torque for a claimed zero to 100km/h of just 3.9 seconds. If that still sounds too sedate, from the middle of 2027 a wilder M3 will debut that should be powered either by a turbocharged 3.0-litre inline-six, or a monstrous quad-motor EV powertrain that could pump out as much as 750kW. On the combustion side, more variants are on the way, with at least one plug-in hybrid version with an EV range of more than 100km set to rock up before the end of 2027. All variants of the new BMW 3 Series and BMW i3 are surprisingly efficient. The 320 can average a respectable 6.5L/100km and even the powerful M350 xDrive is claimed to return a reasonable 7.5L/100km on the combined WLTP test cycle. If anything, both EV versions are even more impressive when it comes to efficiency. The i3 40 xDrive with its 82.8kWh (net) battery averages just 14.3kWh/100km, enabling it to drive up to 710km on a single charge. Choose the i3 50 xDrive and you'll struggle with the concept of range anxiety, as the combination of its 13.4kWh/100km energy consumption and massive 108.7kWh battery sees its travel up to 912km before it needs plugging in. Comparing the Mercedes C400 4Matic with its smaller 94kWh battery, and the BMW wins as it pips the Benz for efficiency (14.1kWh/100km) and range (762km). Plug in the BMW i3 and both variants of the all-electric sedan come with impressively short 10-to-80 per cent battery refills. Employing powerful 800-volt electrics, the i3 50 variant's big battery can accept a 400kW peak charge for a 21-minute 10-to-80 per cent top-up. The small battery matches that time, even though its powerpack can only be topped up at 300kW. The same charge in the Benz, meanwhile, takes only a minute longer. The gap worsens if you have to rely on Australia's most common 400-volt chargers, where the BMW claims a 200kW top-up is still possible, while the C-Class sees its 330kW peak charging rate fall to a lowly 100kW. In Australia the i3 comes with the more powerful 22kW AC charger as standard, with a 0-to-100 per cent charge taking between four hours and 15 minutes for the i3 40 and five hours 30 minutes for the i3 50. Picking up where the BMW iX3 left off, the new BMW 3 Series and i3 embrace the brand's latest interior design, which is claimed to be both modern and driver-centric. Highlights include the lack of wood, carbon-fibre or piano black plastics, with the cabin stylists preferring classier fabric coverings for the surfaces. The minimalist theme that runs throughout is largely a success, aside from a lack of physical buttons that means you have to dive into the large central touchscreen to even adjust the vents' airflow. Earning points back is the configurable Panoramic Vision digital instrument cluster that stretches from pillar to pillar and is supported by a large head-up augmented reality display that is either too distracting on the move, or a godsend when it comes to displaying navigation instructions, depending on your view. Positioned next to a new multifunction steering wheel is a large 17.9-inch multimedia that is angled towards the driver. Plump for the priciest M350 xDrive and you gain a sportier M steering wheel, plus a pair of more supportive M Sport seats. Space within either the 3 Series or the i3 isn't quite as generous as the bigger Benz, but there's enough leg- and headroom in the front and second row, although the latter in the i3 isn't as comfortable than in the petrol, as it needs a raised floor to accommodate the battery that robs you of foot room. Boot space is limited to 450 litres in the 3 Series and just 420 litres in the i3, which gains a 31-litre frunk that houses the charging cables and tyre repair foam and compressor. Those figures pale beside the C-Class Electric, that has a larger 470 litre boot and a more generous 101-litre frunk. Beneath the skin, the BMW 3 Series and BMW i3 are entirely different cars, based on unrelated platforms but, despite this, there are some common traits between the two when it comes to the way they steer, handle and ride. The link is deliberate, engineers brimming with self-confidence benchmarked the combustion version of the current 3 Series as the car to emulate with the new versions, which isn't a bad call since it remains at the top of the class for handling. What's changed in the new M350 xDrive, which mechanically shares plenty with the old M340i, is that at highway speeds wind, tyre and road noise are now all better isolated. In the sports sedan even the loud horn barely intrudes into the cabin – although don't be misled, the new BMW is still an engaging steer. On a tight, twisty road, performance is strong and, thanks to all-wheel drive, you can deploy as much of its thrust as you dare. Highlights include the sweet-spinning, but muffled, inline-six and the snappy eight-speed auto, but it's the ride and agility that steal the show. The car we drove came with the adaptive dampers that are standard on Australian-spec cars, which perfectly balance a controlled ride with comfort. Push hard, preferably on track, and it feels like it's easier than ever to drive to the limit without any intervention of the stability control, egging on the enthusiastic driver. If anything, despite its 0-100km/h deficit on paper, the i3 50 xDrive feels even quicker than its petrol sibling, thanks to its instant torque. Doing without air springs, or rear-wheel steering, the battery-powered take on a premium sedan has less body roll and is blessed with more precise steering and powerful brakes. Again, traction and grip are high and levels of involvement and entertainment are beyond any of its rivals. What's missing are the lack of steering wheel paddles for either virtual gearshift, or the ability to alter brake regeneration, although as well as high and low regen modes, BMW offers an adaptive regen mode that cleverly auto-brakes the car ahead of a corner on a country road. From debut, the BMW 3 Series and the i3 will come with a hands-off cruise control at speeds of up to 130km/h on the highway. Later on in 2027, the system will be upgraded to match what's offered by Tesla with its supervised FSD. While not officially confirmed for either powertrain, the limited luggage-carrying capacity of both the BMW 3 Series and i3 could soon be fixed by the arrival of a Touring wagon body style. We also noted that the ride on the i3 wasn't quite as controlled or compliant as the petrol because it lacked adaptive dampers, but those should be available when Australian deliveries begin later that year. Other than the odd price premium over the iX3, there's a lot to like about either the petrol or battery-powered sedan. The BMW 3 Series and BMW i3 come with high levels of standard kit in Australia, but more affordable, less well-specified versions might come later Standard on the BMW 3 Series are: 19-inch alloy wheels Panoramic Vision instrument cluster 17.9-inch infotainment 3D augmented reality head-up display Tri-zone climate control Ambient lighting Automatic tailgate Panoramic sunroof Heated front and rear seats M Sport steering wheel M Sport seats Harman Kardon 13-speaker sound system 4 USB-C charging ports Wireless charging with cooler and magnetic ring 22 AC charging 360-degree camera Auto-parking Adaptive suspension Illuminated front grille Options include larger 20-inch alloy wheels ($1539 to $2000) and higher-grade Nappa leather seats. There's also the option of the M Sport Pro package ($4410) that adds a sportier body kit that introduces a rear spoiler and black mirror caps, M Sport seats, M seat belts and the M steering wheel. Standard safety kit includes: Auto emergency braking (AEB) with pedestrian and cyclist detection Nine airbags Adaptive cruise Lane-keep and lane-change assist Blind-spot monitoring Traffic sign assist Speed limiter and warning Park assist   The BMW 3 Series and i3 come with a five-year, unlimited-kilometre warranty, which is only average nowadays, while the all-electric sedan adds a further eight-year/160,000km protection for its high-voltage battery. All new BMWs come with 24 months of free roadside assistance. BMW has not announced when the BMW 3 Series or i3 will need servicing, with the German brand continuing to prefer its condition-based intervals, but expect a check-up to be required every 12 or 24 months depending on how you drive your car. Pre-paid servicing for up to six years should be available.

Australia’s new car market is at a “crisis point”, according to the Australian Automotive Dealer Association (AADA).  The AADA has warned dealers are losing money due to the influx of new car brands. AADA Chief Executive Officer James Voortman said Australia needs to stop letting new car brands launch here. “Dealers are facing intense competition, relentless pressure to take more stock and rising business costs. Too often, they are left to absorb the financial consequences of decisions made elsewhere in the supply chain,” Voortman said.  “There are simply too many manufacturers operating in this market and we need a pause on further car brands entering this market. At a time when other countries are trying to slow the rate of change and number of brands, Australia is allowing unfettered access to this market.” New car brands continue to launch in Australia, growing from 39 in 2021 to 67 in 2026, with more on the way in the coming months.  AADA has set out a 10-point plan, with recommendations for the government, suppliers and manufacturers.  The association wants the government to consider a capped licensing regime and pause the entry of any new brands into Australia.  It has called for the implementation of proposed dealer protections to be fast-tracked and liability of Australian Consumer Law breaches to be repositioned onto manufacturers, with new brand entries paused until this has been achieved.  It also wants at least a 12-month price freeze to guard against “severe pressure” on dealer profitability.  Among the changes for manufacturers is the agreement of realistic sales targets, allowing dealers to decline excess stock without facing commercial penalties.  AADA has previously raised concerns around long car repair and refund wait times in Australia as well as a "wave of litigation" when EV batteries need replacement outside of warranty. Australia’s market provides a near-perfect environment for new car brands to launch, because they are not subjected to major tariffs or prohibitive fees. It’s seen brands from around the world, especially China, flood into Aussie showrooms offering buyers very competitive prices.  Many Chinese brands operate with extensive sub-brand networks. There could be as many as nine Chery sub-brands in Australia by the end of 2027, while BYD and GWM also continue to actively add to their line-ups. These brands have capacity to produce copious amounts of stock, but selling them isn’t as simple a task, according to Voortman.  “Pushing excessive stock onto dealers is fuelling a race to the bottom. Aggressive discounting erodes margins and devalues vehicles while dealers carry the financing costs and risk of unsold vehicles,” Voortman said. “Strong headline vehicle sales can conceal serious financial distress at the businesses making those sales. Dealers cannot keep absorbing higher costs, lower margins and greater stock risk indefinitely.” This news follows reports that some Chinese brands are losing money on cars sold. Hyundai Australia Chief Executive Officer and President Don Romano told CarsGuide in July 2026 BYD’s approach to the Australian market wasn’t sustainable.  "I think if I were to lose money and dump cars, and if my stock price was down 40 per cent, I could do the same," Romano said.  "I think there's a big difference between growth at any cost and growth organically, so I'm not surprised. I would be if it was sustainable.”

Many Aussie have bought their first ever EV in 2026 and it’s changed the new car market forever. The Iran war's impact on fuel prices is often put forward as a key reason why more people than ever are making the electric car switch, but that's not the full story. Ed Harvey, Founder and Chief Executive Officer of Australasian home EV charger manufacturer Evnex, told CarsGuide it was fuel security that started to sway buyers. “It flipped the argument,” Harvey said. “The fuel prices have not just really strengthened the cost-saving argument, but also I think it's the first time that people really started talking about energy security or transport security.” Range anxiety has put many buyers off EVs.  It combines a fear of running out of charge with having nowhere to charge it. Harvey said the fuel crisis brought about by the Iran war and the closing of the integral Strait of Hormuz in March 2026 started to change buyer perception. Buyers can now save as much as $3600 a year in just fuel costs by making the EV switch, according to Evnex's research, but Harvey said fuel security also started to cause anxiety with panic fuel buying leading to localised shortages. The federal government relaxed fuel standards and released reserves, while launching a $20 million “Every little bit helps” fuel conservation advertising campaign. Harvey said it was fuel availability not fuel prices that "flipped the script" for many buyers. Drivers worried about where they could fill up as opposed to where they could charge up, for the first time. “I think that really changed how people thought about energy security and our reliance on imported fossil fuels,” Harvey said. “I knew some people with petrol or diesel vehicles that were asking friends to borrow electric vehicles for the holiday period because they were nervous they might not be able to get where they needed to go.” BYD Australia’s Chief Operating Officer Stephen Collins told CarsGuide higher fuel prices and fuel shortages contributed to exponential EV uptake earlier in 2026. Collins described the early stages of the fuel crisis period as a “pivotal point” and an “unprecedented time”. “That March, early April period - I think it was genuinely only a four-week period where we saw a big spike in orders,” Collins said. “I think there were a lot of people that were on the cusp of buying an EV and that tipped a lot of people into ‘I’ll just make the decision now’. “It was a pretty tumultuous time, so I think there’s some truth to that.” The Electric Vehicle Council’s (EVC) 2026 ‘State of EVs’ report found buyers purchased one EV every 100 seconds in the first half of 2026. Electric and plug-in hybrid vehicle sales contributed to more than a quarter of all new car sales in the first half of the year, compared to roughly one in every 10 in the first half of 2025. Where there are competitive EV choices, buyers are making the switch, such as the mid-size SUV segment. The BYD Sealion 7, Geely EX5 and Tesla Model Y have consistently featured among the best-selling cars in Australia in 2026, and have experienced unprecedented growth. There hasn’t been the same growth in some other large segments of the market, and this is because competitive EV choices are still emerging, according to Electric Vehicle Council Chair and Origin Energy E-mobility GM Chau Le. “In each of these segments, EVs are becoming competitive, but we're not quite there yet in some of the segments,” Le told CarsGuide. “We're still a bit out, but with more EV models coming in and improvement in battery technology, it's only a matter of time until we're competitive across all segments.” There are no electrified utes that reach the balance of affordability, capability and driveability that their diesel counterparts have yet. Diesel-powered utes like the Ford Ranger and Toyota HiLux continue to be a significant component of the new car market. Once competitive electric ute choices emerge, the ute segment will likely follow a similar transformation to the rest of the new car market. New car buyers' priorities have shifted permanently, and there's nothing fuel prices or supplies can do to change it.

BMW has made so much noise about its latest electric ‘Neue Klasse’ models, the iX3 and i3, it’s easy to forget about its expansive line-up of internal combustion models. While the shift to electrification is undeniable, there’s still a healthy appetite for petrol cars, especially when it comes to high-performance models like the BMW M135. Even though the hot hatch segment is slimmer than it once was, there’s still a few solid options at the premium end. At $85,500 before on-road costs, the BMW competes with other Germans including the Volkswagen Golf R ($71,990), Audi S3 ($78,800) and Mercedes-AMG A35 4Matic ($89,700) as well as Japan’s finest, the Honda Civic Type R ($85,000), although the latter is manual only. So it’s more affordable than the Benz but pricier than the Audi. Luckily BMW includes a healthy standard features list for the M135. The M135 comes with the following: 10.25-inch digital driver’s display 10.7-inch multimedia display with BMW Operating System 9 Wireless Android Auto and Apple CarPlay Wireless smartphone charger Digital radio Keyless entry and start Head-up display Powered tailgate Active LED headlights with high-beam assistant 12-speaker harman/kardon audio system Heated front seats Heated M Performance leather steering wheel Panoramic sunroof Front sports seats with lumbar support and massage function Over-the-air updates BMW Intelligent Personal Assistant Personal eSIM and onboard 5G connectivity On top of that the safety offering includes: Auto emergency braking (AEB) Steering and Lane Control Assistant Adaptive cruise control with Stop & Go Lane keeping assistant with active side collision protection Lane change warning Front and rear cross-traffic warning Rear collision warning Overspeed warning Surround-view camera with 3D view Park assist The Brooklyn Grey metallic paint of the test car is a $1700 option. For too long BMWs and other European carmakers scrimped on features, instead relying on their premium brand position to sell cars. Not anymore. The standard features list in the M135 stacks up and it makes for a properly premium small car. A couple of years into its lifecycle, the 1 Series is still a handsome little hatchback, with a squat stance and lovely proportions. The redesigned front end gives it a sharper modern look, too. Inside it features integrated twin screens familiar to other BMW models and while it doesn’t have the latest in-car tech from the iX3, it’s still an appealing cabin. The screens and air con vents are all angled towards the driver which adds to the cockpit feel. There are few buttons aside from what’s next to the gear shifter on the console - drive modes, demisters, hazard lights - but the cabin doesn’t feel overly minimal. Being an M Performance model the M135 gains some snazzy interior touches like red and black synthetic leather upholstery on the seats and door panels which brightens the space considerably. It’s sporty yet still looks premium. Those front seats offer the perfect level of upper and lower body support. Some BMW M car seats are so heavily bolstered they’re almost uncomfortable. That’s not the case here. The M steering wheel has a flash of red at 12 o’clock and like most BMW tillers it’s a bit too thick for me. But the paddle shifters look good and got some use during a dynamic drive. Storage wise there’s a long but shallow centre bin, a couple of cupholders and a wireless charger. The door bins are awkwardly shaped so only smaller bottles will fit, but there is an extra nook for other items. The multimedia setup is not as intuitive as the latest setup in the iX3. The app page features lots of little icons that change dynamically based on what you’ve used most recently. It’s not a challenging system to navigate, which is a plus. There’s two USB-C ports up front if required. The panoramic glass sunroof only has a mesh fabric blind and while it’s much better than some similar shades from other makes, nothing can beat a solid blind when it comes to keeping Australia’s blazing sub out of the cabin. Sitting behind my six-foot tall driving position, the rear row is quite cramped. Legroom is tight - my knees touch the back of the front seats. The roof has been scalloped out for more headroom but it’s still tight because of the sunroof. It has a bulky transmission tunnel so the middle seat is all but useless. There’s two USB-C ports, short and narrow bottle holders, a centre armrest with two cupholders and knee-level air vents. Boot space is 380 litres (increasing to 1200L with the rear seats folded) which is better than the Audi S3 (325L). It has a powered tailgate standard. There’s no spare wheel, only an awful repair kit, but the M135 has handy dual-level boot storage. Under the sculpted bonnet of the M135 is a 2.0-litre four-cylinder turbocharged petrol engine delivering 233kW of power and a meaty 400Nm of torque. It drives all four wheels via BMW’s xDrive system and has a seven-speed dual-clutch ‘Steptronic’ transmission. It can hit 100km/h in just 4.9 seconds and official fuel use is 7.8 litres per 100 kilometres. Over a week of both easy urban driving and enthusiastic back road blasts, I recorded a thirstier 10.3L/100km. Poke your right foot and you’re met with a beat of turbo lag followed by incredible acceleration - that 0-100km/h time is no joke. The engine note is also a delight and adds to the whole experience. BMW’s smooth seven-speed dual-clutch snaps through the gears at the perfect time almost every time. Accelerating quickly to a lower speed limit might require a flick of the paddle shifter. The brakes with the sexy blue callipers are incredibly strong and the steering is super sharp, changing direction crisply. The M135 has loads of grip, holding on to the road even when pushed up a sharp, sweeping incline. Phenomenal stuff. Ride quality is mixed - it’s firm which isn’t surprising for a European hot hatch that’s designed for performance driving. It’s less noticeable at speed on a twisty back road. That firmer ride is more evident driving on pockmarked urban roads at lower speeds, where it can get a little jiggly. But by no means would this sway me from owning the M135. Drive modes include Personal, Sport and Efficient - I didn’t bother trying the latter. Sport mode makes the BMW even quicker, to the point where you need to hold the steering wheel even tighter, particularly on uneven road surfaces. I never felt in danger of losing control or even losing traction.The engine note amps up a notch, too. One quirk that won’t annoy everyone is the auto stop/start. I turned it off every time I drove the car as I found it a little laggy. The advanced driver assist systems work without interruption in the background. No need to switch any of these off. European brands like BMW continue to lead the way with this tech. The M135 is covered by BMW’s five-year/unlimited kilometre warranty which is now the norm for premium brands. BMW’s ‘condition-based servicing’ means the car’s computer tells you when it needs a service. Currently a five-year/80,000km pre-pay package is $2470.

Here’s a mildly deflating fact. Outperforming BMW’s brilliant 3 Series, the X2 is the one-time “Ultimate Driving Machine” brand’s fourth best-selling model in Australia, behind three more SUVs, the X5, X3 and X1. The swoopier version of the latter, it competes against other popular if dull premium small crossovers, like the Mercedes-Benz GLA and Volvo XC40, and is closely related to the Mini Countryman. But a week in the newly revised and de-specced base sDrive20i M Sport forced us to reassess our attitude. Not much visually, given that the second-gen version only landed in 2024, remains quite fresh, and still possesses the same surprised-looking nose and somewhat odd proportions. The X1 is prettier. However, mechanical updates see new cleaner Euro 6e powertrains. These include a switch in the base X2 from the $77,300 (all prices are before on-road costs) xDrive20i M Sport with a 150kW/300Nm 2.0-litre four-cylinder turbo petrol engine and all-wheel drive (AWD), to a $72,800 125kW/280Nm 1.5-litre three-cylinder turbo unit with 48-volt mild-hybrid electrification and front-wheel drive (FWD). Remember back in the 2000s when BMW ribbed rivals for being FWD… Note that, to reinstate four cylinders and AWD in an X2, you’ll now need to spend an extra $20K for the (albeit more-powerful) M35i xDrive AWD from $96,700. Sneaky. Equipment levels include: • Adaptive LED headlights • Adaptive cruise control, as part of a long list of standard advanced driver assistance systems (ADAS) • Head-up display • Wireless Android Auto and Apple CarPlay • Wireless smartphone charger • BMW’s connected services subscription service with emergency callout • Digital key with auto entry with walkaway lock • Artificial suede and leather upholstery • Heated and powered front sports seats with driver’s side memory • Sat-nav with augmented view • Surround-view reverse camera with auto-parking assist • Powered tailgate • xLine sports body kit and interior package • 19-inch alloy wheels Our car is fitted with a $6500 Enhancement Package, which adds metallic paint, sunroof, 12-speaker audio upgrade, front-seat lumbar with massage function and a heated steering wheel. Or, in other words, nearly $90K drive-away for a base X2 FWD. Oof. That said, the interior presentation really is up to brand expectations. Getting in and out isn’t too bad for a sleekly silhouetted SUV, and once in, the front row feels both vast and cosy all at once. Much of that has to do with the utterly superb bolstered front seats, that hold and caress you in all the right ways, whilst providing vast legroom. Unsurprisingly, the X2’s driving position is first class, with thoughtful access to all the main controls, starting with the gear shifter, which is surely one of the best in the business. The same applies to the auto climate set-up and performance, offering each occupant the luxury of personal temperature control. And storage is downright abundant. Quick and crystal clear, the extended curved display screen features one of the best multimedia operating systems in the business, with set-and-forget connectivity and bombastic audio quality. Moving into the back-seat area, headroom should also be fine for most folk, despite the fastback roofline and small-ish apertures, and legroom is OK too. The comfy seats offer a nicely shaped cushion and reclinable backrest, along with access to a full array of expected amenities. These, together with a tight fit and finish, compelling textures and alluring lighting ambience, help explain why today’s BMW small SUVs are such a big hit. Our only notes are fat pillars and shallow side glass do limit vision and the hexagonal instrumentation is no patch on BMW’s historic dials that remain paragons of elegance Further back, the X2’s cargo capacity extends from a useful 515 litres to 1400L with all three (fiddly) backrests folded flat, and there’s some extra underfloor storage too, but the lack of a spare wheel is a black mark. Tyre repair kits are insufficient for Australia. At the other end of the BMW, behind that crass illuminated oversized kidney grille, is that 125kW/280Nm 1.5-litre three-cylinder turbo-petrol engine with 48-volt mild-hybrid electrification, complete with a 0.9kWh Lithium-Ion battery. For maximum efficiency, it sends power to the front wheels via a seven-speed dual-clutch transmission (DCT), and is assisted by an integrated electric motor providing an additional 15kW and 55Nm. Now, this really is a powertrain of two halves. In regular driving modes, the performance is adequate, with lively off-the-line acceleration, unless you’re in a hurry, because flooring the throttle only seems to result in further delay. We found that selecting Sport helped reduce that. One spooled up, though, the three-pot turbo really comes alive, roaring along as the revs soar, providing strong yet silky-smooth performance. Find a string of corners, pull the left paddle shifter into Boost mode, and there’s an added wallop of thrust, accompanied by a rorty exhaust note that puts you in mind of the Toyota GR-developed Lexus LBX Morizo. Combined with the X2’s lovely, tactile steering, fluid handling and sturdy, controlled chassis, the BMW SUV turns into a frenetic and fun driving machine. Very on-brand. Unfortunately, so is the stiff suspension’s hard ride, as well as the endless tyre drone, on anything other than ultra-smooth surfaces. Pity. At least the sDrive20i delivers on economy, with the trip computer displaying an impressive 6.8 litres per 100km – against the 6.5L/100km claim. Top the tank up with premium 95 RON unleaded, and over 800km between refills is possible. There’s no ANCAP crash-test rating, but the high level of safety tech suggests you’re in safe hands, while the ADAS tune is mercifully nuanced so unobtrusive. The X2 comes with a five-year/unlimited kilometre warranty and the X2 has condition-based service intervals. We recommend annually or every 10,000km. There is no capped-price servicing but pre-paid packages are available, including a five-year/80,000km one for $2495. This is cheaper than five-year service packs for the Audi Q3, Volvo XC40 and Mercedes-Benz GLA.

Petrol- and diesel-powered cars are back on the agenda in Europe. France and Germany are brokering a deal to see the European Union will walk back from its 100 per cent CO2 emissions reduction target, opting for a 90 per cent reduction instead, according to a report in Auto News. The old rules would have completely phased out petrol- and diesel-powered cars by 2035, but the EU has changed its tune. The EU is expected to also remove any offset requirements for the remaining 10 per cent that would have required carmakers to pursue expensive low-carbon steel or alternative fuels. This news means European carmakers will continue to build internal combustion cars for the foreseeable future. Rumours of the EU rolling back its emissions targets started in 2025, when multiple reports speculated the ground-breaking ban was in doubt. President of the European Parliament’s biggest party, the EPP, Manfred Weber told German newspaper Bild in December 2025, the 2035 plans were “off the table”. Weber said that “there will also be no 100% target from 2040 onwards”, ruling out a complete combustion engine ban in the future. The rules have come under extensive scrutiny from key stakeholders, including German giant Mercedes-Benz. Chief Executive Officer Ola Kallenius criticised the inclusion of offsets as part of the rules in March 2026, with offsets now all-but officially ruled out. “I know the market for green steel and how unrealistic those expectations are,” Kallenius said. He also said the rules could trigger a collapse in demand and distort the market. New cars sold that emit high levels of CO2 incur fines for brands under Australia's New Vehicle Efficiency Standard (NVES). By contrast, brands earn credits for cars that emit no CO2. The federal government has no plans to ditch NVES and is targeting five million EVs on Aussie roads by 2035, but some carmakers have criticised the rules. Ford Chief Executive Officer Jim Farley said regulations like NVES force carmakers to build cars to satisfy the rules, not buyers. “What we’ve seen around the world with this kind of pressure on pure EVs is that ultimately all OEMs develop compliance vehicles,” Farley said. “They’re not designed for customers. They’re designed for the OEM to be compliant and they’re subsidised by the OEMs and the customers have great choice. “That’s not a natural market and over time that winds up not being sustainable. “Something your government, or any government, has to be very sensitive to around the CO2 glide path. We want to reduce our CO2 footprint, but there’s a level that the customer can’t afford, and not all duty cycles can be electrified.” The NVES regulator handed down the inaugural 2025 performance period for NVES in early 2026. Mazda accrued over 500,000 emissions debits, which was the most of any brand, while Nissan and Subaru rounded out the top three. The regulator will release details of the 2026 performance period in February 2027, before the rules get even tougher in years to come. Some hybrid models will start to incur fines under the scheme, while utes will also come under scrutiny.

There is plenty of affordable Chinese car choice for buyers in Australia, and we’ve just learnt why. Chinese brands can build an EV for $11,000 less than European legacy automakers, according to a report in AutoNews.  Manufacturers aren’t just winning on price, they’re winning on speed as well.  Chinese automakers develop cars more than two times faster than their European rivals. These advantages are seeing Chinese manufacturers surge up the sales charts globally, and there’s more than 100 EV models on sale in Australia.  Chinese carmakers can build and sell cars faster.  European carmakers take up to five years to bring a new model to market, while Chinese rivals can do it in only two years.   When these models do finally hit the market, they aren’t as prolific as Chinese ones, with less than a third of sales from vehicles introduced in the past three years.  New Chinese models account for up to 100 per cent of a brand’s sales within the first two years by contrast.  These factors have contributed to European car brands’ pre-tax profit dropping from 13.2 per cent in 2021 to 6.9 per cent in 2025, which in turn limits their ability to innovate.  The European Union has resorted to hefty tariffs on Chinese EVs coming into the region to protect its car industry, but it’s not stopping buyers choosing them.  These brands have now started building their cars in Europe to avoid tariffs, while taking advantage of under-utilised European automaker factories.  Consultancy firm AlixPartners told AutoNews the way Chinese brands are operating in Europe has fundamentally reset consumer expectations on price and technology. “A gradual response isn’t an option,” AlixPartners co-head of automotive for Germany, Austria and Switzerland Xing Zhou said.  “Manufacturers need to restructure, support their suppliers and move faster on technology partnerships than most have been prepared to do so far.” European carmakers need to aim for two-year development cycles and lean into artificial intelligence (AI) to reduce costs and increase production and development speed, according to the firm.  “The window to act from a position of financial strength is closing, and closing faster than most boardrooms and governments assume,” global co-leader for automotive and industrial practice at AlixPartners Andrew Bergbaum said.

A fix for a huge electric car problem is in the works. The Electric Vehicle Council (EVC) has announced a $1.43 million investment into a national EV charging roadmap.  The EVC said in its 2026 State of EVs report that Australia still needs "substantial public charging investment”.  It called for better data on demand use, reliability and coverage, with Australia’s charging infrastructure conundrum more complex than merely installing more fast chargers.  The roadmap is expected to be finalised in mid-2027.  The $1.43 million is made up of funding from the Australian Renewable Energy Agency (ARENA) ($1.06 million) as well as contributions from the EVC and other project partners.  The roadmap will look at charging demand, pressure points and where greater coordination could inform investment decisions through to 2035. It aims to introduce a coordinated charging network for passenger cars and heavy vehicles in metropolitan and regional Australia.  “Other major EV markets have recognised the value of coordinated national planning,” EVC Chief Executive officer Julie Delvecchio said.  “This Roadmap will bring that to Australia, shaped around our distances, our electricity system and the needs of everything from passenger cars to heavy trucks.” Owning a petrol or diesel car is becoming more expensive in Australia, and buyers are making the switch to EV power.  The Tesla Model Y has consistently featured in the top five best-selling cars, and in June 2026, it achieved a recording-breaking 8072 sales.  The BYD Sealion 7 has also recorded a serious increase in sales as it provides tough competition for the Model Y, while Geely’s EX5 has had a bumper 2026.  The federal government is targeting 5 million electric cars on Aussie roads by 2035, which would require the total number of EVs on the road to increase tenfold. Electric cars are now among the cheapest on offer in Australia.  The BYD Atto 1 starts from $19,990, drive-away (until December 15, 2026), while the Geely EX2 is available from $26,490, before on-road costs.  The New Vehicle Efficiency Standard (NVES) is helping to increase EV choices for buyers, with high-emission cars incurring hefty fines under the scheme. 

The new BMW iX3 is the first production model to arrive on BMW’s new Neue Klasse EV architecture. Has BMW actually managed to make its next generation of EVs feel like a proper Bimmer?

BMW’s new electric car has a monstrous driving range, and it’s headed to Aussie shores. The BMW iX4 is a 'coupe' SUV counterpart to the iX3 electric mid-size SUV. Pricing starts from $103,900, before on-road costs, with the top-spec 50 xDrive variant an extra $16,000, at $119,900, before on-road costs. The starting price is $14,000 more than the entry-level iX3 40, which notably ditches the dual-motor all-wheel drive set-up, but is substantially cheaper than the larger iX. The iX4 will rival the Audi Q6 Sportback e-tron ($89,990), as well as the Tesla Model Y Premium Long Range AWD ($68,900), among others. BMW expects deliveries on the entry-level iX4 40 xDrive to begin in Australia in the first quarter of 2027, with the top-spec grade joining later in the year. 2026 BMW iX4 pricing Australia The 2027 BMW iX4 is powered by two electric motors. Total system outputs are 275kW and 520Nm in the 40 xDrive, or 345kW and 645Nm in the 50 xDrive. In combination with its AWD system, iX4 50 xDrive can accelerate from 0-100km/h in as fast as 4.9 seconds. The iX4 is the latest addition to BMW’s Neue Klasse line-up, meaning it uses an 800-volt electrical architecture. The iX4 40 xDrive has an 82.6 kWh battery offering up to 638km of WLTP-claimed range, while the 50 xDrive has a larger 108.7kWh unit with a WLTP-claimed range of 828km. The 40 xDrive has a peak DC fast-charging rate of 300kW, while the 50 xDrive can charge at up to 400kW. Both cars can DC fast-charge from 10 to 80 per cent in 21 minutes. The iX4’s interior is dominated by a 17.9-inch central touchscreen with wireless Apple CarPlay and Android Auto functionality. It also features BMW’s panoramic digital display that projects information across the lower section of the windscreen, contrasting a traditional display in front of the driver. Both variants of the iX4 are equipped with a 3D head-up display. The car rides on 20-inch light-alloy wheels as standard, and sports BMW’s kidney grille and headlight design that looks like one single piece on the front of the car. It has a sloping roofline, with a full-length panoramic sunroof as standard.