BMW X1 2026 review: xDrive25e | Audi Q3 rival tested

The BMW X1 won the Best Small Car starting under $80,000 category in CarsGuide's 2026 Car of the Year awards, and the line-up has just received a shake-up.

While petrol and electric (iX1) versions of this small SUV are still on offer, there is now a plug-in hybrid (PHEV) variant.

Read More About BMW X Models

• BMW crosses the line as it plays unsolicited ad for Spider-Man: Brand New Day on vehicles' screen to celebrate new 2026 BMW iX3 SUV
• Your next car will be up to 35 per cent garbage as BMW, Toyota and more use scraps, old cars and recycled materials in new cars to meet EU regulations
• New era for car safety in Australia dawns: 2027 BMW iX3 is the first model tested to new ANCAP standards as Mercedes GLC and Audi Q5 rival steps up

This sees it compete against other plug-in hybrid rivals like the Mercedes-Benz GLA250e ($78,800 BOC) and Cupra Formentor VZe ($68,990 BOC). Audi hasn’t launched a PHEV version of its new-generation Q3 in Australia yet.

Our test car is fitted with the Enhancement Package ($5700) which adds the following:

• Metallic paint
• Panoramic glass sunroof
• 12-speaker Harman Kardon sound system
• Heated steering wheel

What is under the bonnet?

There is a 1.5-litre turbocharged three-cylinder petrol engine that powers the front wheels with a seven-speed dual-clutch automatic, as well as an 80kW electric motor on the rear axle. Total system outputs are 180kW and 477Nm which is good for a 0-100km/h sprint in 6.8 seconds.

There’s plenty of power on tap. Around town the electric motor handles almost all of it on its own, but lean harder on the accelerator or deplete the battery charge and the petrol engine steps in to assist.

When the petrol engine first fires there can be slight hesitation as the powertrain shuffles how the drive is sent. It’s brief and then things smooth out.

The three-cylinder petrol engine has a fun, perky but you can tell it's working hard to shift 1855kg of small SUV.

What are the electric components?

Feeding the electric motor is a 16.3kWh (14.2kWh usable) lithium-ion battery pack which allows for up to 86km of WLTP-claimed electric range. During my urban real-world testing I saw closer to 55km, which isn’t very much by today's standards.

BMW claims the X1 xDrive25e has a combined fuel consumption of 3.3L/100km, according to ADR 81/02 testing, though your usage will depend on how often you charge. When the battery was depleted I saw an average of 9.5-10L/100km, which is a fair bit for a car of this size.

There is a 47L fuel tank that requires a minimum of 95 RON premium unleaded petrol.

Charging up the battery pack can only be done by a Type 2 plug that’s on the front-left quarter panel and allows for AC charging at rates up to 11kW. With this a full charge is claimed to take 1.75 hours.

What is the BMW X1 xDrive25e like to drive?

Even though it can feel like the turbo three-cylinder engine is working hard, it’s aided by the electric motor. When you boot the accelerator there's plenty of oomph available, plus if you’re feeling frisky, there’s also a ‘Boost’ mode that turns everything to 11.

Once the need for speed is over, it’s surprising just how fun this car is to drive, even around town. This is primarily thanks to light, yet direct steering.

This version of the X1 comes with the M Sport package as standard, which means it has a sportier suspension set-up with adaptive dampers. It’s generally comfortable and compliant, though harsher bumps can transmit into the cabin with a jolt.

There’s a lot of polish to this car and it’s clear it's still a segment benchmark, at least from a dynamic standpoint.

What's it like inside?

The BMW X1 still has a striking cabin with its dual screen set-up, though the 10.7-inch touchscreen multimedia system does look a touch small now compared to some of its competitors.

Looking elsewhere there's the classic chunky BMW steering wheel, a generous amount of open storage under the centre console, a handy clamp to hold your phone on the wireless charger, as well as a comically small centre armrest storage spot.

Despite being a small SUV, there’s still a generous amount of space in the second row. Plus, the floor is virtually flat, meaning the centre seat isn’t a terrible place to sit. Though the centre seat has a roof-mounted seatbelt which does eat into rearward visibility.

Adding to the segment-defying space, it has 490L of boot space with the rear seats upright, expanding to 1495L when folded. Surprisingly for a PHEV there’s even underfloor storage for the charging cables, however there’s no spare wheel.

What about safety and warranty?

Petrol and electric versions of the BMW X1 have a five-star ANCAP safety rating. It’s unclear whether this will be extended to the PHEV.

The following safety equipment is on offer:

• Autonomous emergency braking (AEB)
• Blind-spot monitoring
• Rear cross-traffic alert
• Lane-keep assist
• Adaptive cruise control
• Lane-change assist
• Surround-view camera
• Front and rear parking sensors
• Parking assist
• Dashcam

All of the safety systems are well-calibrated and don’t interfere with the driving experience, unless required.

Like all BMWs, the X1 xDrive25e is covered by a five-year, unlimited-kilometre warranty, which is standard for luxury carmakers but lacking when compared to mainstream counterparts. The high-voltage battery is also covered for eight years or 160,000km.

BMW offers three- and five-year pre-paid service packages which are priced at $1466 and $2493, respectively. The latter equals about $500 per service, which is typical for a European luxury car of this size.