BMW Australia has slashed the price and boosted the specification of the BMW 1 Series hatch to counter its newly launched, aggressively priced, premium German rivals.

The entry-level BMW 116i now starts at $35,600 – matching the sharp base-model pricing of its compatriots, the Audi A3 TFSI Attraction and the Mercedes-Benz A180.

Previously a $2693-$4000 option, upgrading from the standard six-speed manual to an eight-speed automatic transmission is now free of charge, effectively cutting $4393 from the price of the 116i auto and $7500 from the self-shifting version of the flagship BMW M135i hot-hatch.

The upgraded 116i benefits from the addition of rear parking sensors and new interior upholstery.


The 118i, 118d and 125i grades score a number of tech upgrades, introducing a high-resolution 6.5-inch screen with the Business Navigation system, as well as an iDrive controller, and extended smartphone connectivity with voice control and Bluetooth audio streaming. Prices of the 118i and 118d grades are down between $700 and $4093.

The 125i also scores 18-inch double-spoke alloy wheels and the Sport line package, which adds front sports seat, a leather-wrapped sports steering wheel, and high-gloss interior and exterior trim with red accent lines.

The 125i manual is the only trim in the range to experience a price rise – up $1400 – while the auto falls $1677. BMW says despite the price increase, the specification boost makes the 125i manual substantially better value than before, with all grades claimed to be at least $5000 better value than before.


The M135i gains front and rear parking sensors, and the Professional Navigation system with internet connectivity and integrated touch controller function. The new $64,990 price tag represents a $3500 saving over the previous manual.

Additionally, the eight-speed ‘sport’ automatic transmission, exclusively offered on 125i and M135i variants, now features a new launch control mode.

BMW has also simplified the options list, now offering six distinct packages – Convenience Package, Advanced Parking Package, Visibility Package, Premium Sound Package, Professional Multimedia Package, and Comfort Package – that combine the most popular extra features into bundles.

Metallic paint, leather upholstery, sunroof, and the rear-cargo through-loading system are still available as individually selectable options, among others.

The upgraded BMW 1 Series hatch range will be available from July production, with the first cars due to arrive in Australian showrooms in September.


BMW 1 Series manufacturer’s list prices:

  • BMW 116i manual – $35,600 (down $1700 to $4393)
  • BMW 118i manual– $42,500 (down $700 to $3393)
  • BMW 118d manual – $42,500 (down $1400 to $4093)
  • BMW 125i manual – $47,500 (manual up $1400, auto down $1677)
  • BMW M135i manual – $64,900 (down $3500 to $7500)

  • Exar Kun

    Wow, expect some crazy discounting on cars in stock then! It’s a nice move to see.

  • Martin

    Great.. there goes my resale value. I paid for sat nav, auto transmission and extended smartphone connectivity (about 5k). Guess it really could be much worse… could have bought a Golf.

    • Joe

      ….no it couldn’t be much worse….you paid way too much money for the ugliest vehicle on the planet….I hope you have one of those car covers to stop scaring your neighbors children…….scar them for life you will !!!

      • Guest

        Ummmm…ugliest vehicle on the planet? Have you seen the Ssangyong Stavic? You need your eyes adjusted. Yeah the design is controversial, but at least it’s revolutionary rather than evolutionary for a change 😉

      • $29896495

        Pretty much true. The next lot of buyers will still be paying to much. So the cycle will continue.

      • M135i

        Why worry about the front look as most ppl will see only the rear of it… you will smoke most of the cars on the road.. that being M135..

        • JooberJCW

          Given most buyers of this car will probably do peak hour driving or the lazy Sunday cruise you’ll see plenty of front ends.

      • Martin

        Hey! Rudeness. I like my car. I like that it is unmistakable and looks like nothing else on the road. I like that it looks like its frowning at everything. I like when the turbo spools up and I shoot between traffic. I may have paid way too much for it but it puts a smile on my face every time I drive it so it is worth to me (i would have liked to have paid less but that’s what you get for being impatient).

        • Rick

          Could be worse , you could own a VE Holden commodore . Look how much the prices have dropped for the VFs . Either way all cars in Australia should have price reductions , we are being screwed royally .

        • Sonic

          Ignore Joe’s comment… He obviously preferes a car with boring conservative styling, and frowns at anything even slightly interesting. It’s a good-looking car which scares dull-minded people.

          • $29896495

            The first 1 totally misshapen and ugly, this improved but boring and ordinary. I think you need to get your priorities right.

          • Joe

            ……..Citroen C4 VTS Coupe anyone??? and currently 2007 Alfa Spider…..the C4 would leave ANY 4cyl. BMW and most of the sixes for dead up a winding mountain road. Don’t believe the rhetoric of the motoring journalist, drive a few different cars and then make up your own mind.

            I love very different styling but I’m sorry the Bangle mangle era was just that…..ugly. Dosen’t matter who you are, ugly is ugly.

            But if you have to have the badge and keyring………

    • zahmad

      Really feel for you mate.

  • The Realist

    To all those people who said BMW will be able to charge a premium over the competition. You couldn’t have been more wrong.

    It’s competitors have barely hit the streets and BMW are already dropping their pants.

    • argag

      1 series has already been around for two years and these price reductions don’t start for another 3 months.

      • Hector

        so what you’re saying is, BMW has been ripping off Australian consumers for 2 whole years?

        what a disgrace! and i feel for anyone who bought one in the past 24 months.

  • Liam Sullivan

    It looks confused haha

    • dr sheldon cooper

      There is a niggling suspicion that BMW purposely makes their cheaper models “homely”-looking, to be polite about it, to force buyers to go upmarket.Case in point: the X1 is uglier than the X3 which is uglier than the X5.

      MB, on the other hand, does not subject their buyers to similar treachery. That said, i still love BMWs….but their entry-level cars (and SUVs) have faces that only their designers could love.

  • john

    Very competent car but I hope a brown paper bag comes as standard equipment or an option because you will need it each time you look at this ugly little bugger!

    • dr sheldon cooper

      I find your suggestion offensive. Why be so cruel to the brown paper? That face is too ugly. :)

  • Em

    The M135i will sell like no tomorrow! Laters Audi and Mercedes 😛

    • JooberJCW

      Err no. The new merc a series is already selling like hotcakes and the queue is only getting worse

    • marc

      v8 holden at 39k is looking like the best bang for your buck.

  • F1orce

    Still very expensive..

    • Rick

      Aren’t all cars in Australia , the euros especially

    • KH

      only if you can’t afford it

  • marc

    v8 ss anyone?

    • Rick

      Makes you realise how good a bargain the Aussies are

    • James

      Does it come with a side of shrimp and a VB?

  • m1

    legendary German engineering at a legendary PRICE.

  • Zaccy16

    Thats a huge increase in value! i don’t lke the styling of the lesser models but after seeing a m135 in the flesh it looks fantastic in that blue!

  • Yetiman

    Save your money and buy a 3 series.

    • The Realist

      why save your money and buy a 3 series? i reckon there are better savings to be had with the 458 Italia. Why stop there?

      • Yetiman

        That’s a bit silly. Base model 3 series is 15K more and much better car.

  • KH

    with the A-class pricing and equipment levels, this was always going to happen

  • Alan Jones

    Just test drove both the MB A250 and the 125i this afternoon. A250 looks better inside and out, 125i goes better. Been in a friend’s M135i 2 weeks ago and it is a rocketship! Almost brutal when you hit the go fast pedal!

    I am torn, not sure about the styling on the 1 and not sure about the ride on the A250, aside from that, not much choice around. No interest in a massive V8 falcadore or a low rent evobaru (been there, done that before).

    • BH

      I was also looking at the A250 and 125i. At first I loved the looks of the A250, but after a while it looked they were trying a little too hard in the ‘sports styling’…just seemed a bit much. I didn’t mind the look of the 125i and the fact i thought it drove better I decided on the 125i. The day before I was going to sign up for the 125i I was alerted to the new pricing and extra standard equipment on the M135i…so to cut a long story short, I test drove and ordered the new M135i the following day. If you can afford the extra $$ the M135i is an amazing drive!