BMW M2 caught testing with new M3

These new photos reveal the BMW M2's quad exhaust system for the first time. When launched either late next year or in 2016, the M2 will become the entry point to the M brand, offering buyers a high-performance two-door coupe based on the 2 Series that will sit somewhere between the BMW M235i and BMW M4.

Power is all-but-certain to come from the same 3.0-litre six-cylinder twin-scroll turbo currently found in the M235i, but positioned somewhere between its 240kW/450Nm output and the 317kW/550Nm of the twin-turbo M4.

BMW engineers told CarAdvice at the launch of the BMW M3 and M4 that it was not physically feasible to put the twin-turbo engine in the M2, but it's more likely the marketing power of the M4 having a more powerful engine than its smaller 2 Series-based brother has determined that decision.

The M2 is likely to inherit much of the chassis technology from the M3 and M4, including an electronically controlled limited-slip rear differential, and feature upgraded suspension and M-tuned stability and traction control systems.

The BMW M2 is also likely to gain a dual-clutch automatic transmission as with the rest of M range. If the M3 and M4 range is an indicator, the M2 should also be available with a manual transmission as a no-cost option.

Given the price hike of the BMW M3 and M4 in Australia, the M2 will likely see its price tip over the $100,000 mark, surpassing the $99,900 price point of the BMW 1 Series M Coupe.

Though not a direct rival, the BMW M2 will form hot competition for the Mercedes-Benz CLA45 AMG and the anticipated Audi RS3 sedan.