The new engine gets the latest in BMW's twin-scroll turbocharging technology as well as High Performance Injection direct injection and VALVETRONIC variable valve timing. The specifications and fancy features of the engine may be a mouthful but the end result justifies all those technical terms.
BMW says the new 2.0-litre engine offers 180kW of power and 350Nm of torque; simply excellent figures for this size engine. On top of this, BMW engineers have designed this engine so it doesn't have to work very hard to achieve big numbers, which means it is very fuel efficient as well.
With a fuel consumption figure of 7.9L/100km, it will 'out-green' most small, front-wheel drive cars on the market, including the Mitsubishi Lancer (8.3L/100km), Mazda3 (8.2L/100km) and Ford Focus (8.0L/100km) 2.0-litre models.
The BMW X1 xDrive28i is all-wheel drive as well, which helps the car achieve sports-car like acceleration times; 0-100km/h in just 6.1 seconds (manual).
BMW is yet to announce the car's launch date but speculations expect the new model to debut some time later this year.
BMW Australia is also yet to comment on a possible Australian release date. We'll keep you posted.
UPDATE: BMW Australia has just confirmed the new engine will be heading our way, but said official trim level allocation and timing is yet to be decided.