BMW X1 spied

BMW engineers have been spotted behind the wheel of its next-generation baby SUV.

Set to replace the entry-level X1 around 2016, the compact crossover will share its platform with planned front-wheel-drive BMW hatchbacks based on the brand’s Concept Active Tourer show car.

The car is likely to be offered in a cut-price two-wheel-drive model to satisfy buyers on a budget, and a hybrid model may also be on the cards.   

BMW’s current X1 is comprehensively outsold by the Audi Q3, and its next-generation car will face increased competition locally, with the Mercedes-Benz GLA set to go on sale in 2015.

Lexus is preparing to introduce a small SUV to rival the Audi Q3, and Volvo is also expected to release the XC40, a high-riding crossover based on the V40 Cross Country.

Infiniti has also revealed its Q30 concept car, which is expected lead to a small SUV - to be dubbed QX30 - based on the brand’s next entry-level model.