New BMW 1-Series

The engine is also available mated to the segment's only eight-speed automatic transmission, but unfortunately no petrol autos were available on the overseas launch, held in Berlin. A third engine, a 2.0-litre diesel, will also be available at the car's local launch in October, while a top-of-the-range turbo six-cylinder version is rumoured to be in the pipeline.

All the engines have a stop-start system for saving fuel in traffic jams and an Eco mode that changes the engine mapping and transmission shift points on the auto, as well as turning down the air-con to save fuel and advising the driver of the most economical time to shift up a gear. BMW claims changes to driving habits can shave up to 20 per cent off people's fuel bills.

There's also a sport mode that gives sharper throttle response, different shift points and a sportier steering feel.

The upgraded cabin has been noticeably lifted, with higher-quality materials, slightly better storage and a logical and attractive dash layout. The seats grip you tightly - perhaps a little too tightly for bigger drivers - while the chunky sports steering wheel feels great in the hands.

The Urban Line package, with its shiny white inserts on the doors and dash, could take a fair bit of getting used to, but most buyers will like the look of the Sports Line pack, which trades white for brushed metal highlights and red stitching on the steering wheel and seats.

BMW won't reveal pricing for the new individualisation packs, but says the cost of the pack is less than the cost of the individual items. The maker says there will also be a host of other options, including lane departure warning, automatic parking and active cruise control. Expect the price of a new 1-Series to spiral once these are on board.

While the new 1-Series has made noticeable gains in a number of areas, the lack of room in the rear seats remains an issue. The new car is longer and wider, with a bigger boot, but the 2cm of extra rear legroom doesn't elevate the BMW to spacious by any stretch of the imagination.

The ride, on the other hand, appears to have improved. BMW says its new-generation run-flat tyres have been developed with softer sidewalls to make them more compliant over bumps, while the suspension has also been tweaked to provide a better compromise between control and comfort.

We'll reserve final judgement until we've driven the car on local roads, but the initial signs - albeit on smooth German highways - are promising.

It's hard to give a definitive verdict on the new 1-Series until we've driven all variants and their various engine-transmission combinations, but at first glance the new 1-Series looks well prepared for the imminent arrival of all-new Mercedes-Benz A-Class and Audi A3 models.