BMW stuck to its guns with the second-generation 1 Series, retaining the less practical but more fun rear-wheel-drive configuration while adding some faster and more frugal turbo engines and more cabin space into the mix.

The 118i tested here is the second-cheapest member of the range, and uses a perky 1.6-litre turbo matched with an eight-speed automatic transmission.

While not as quick as the cheaper (and excellent) Volkswagen Golf GTI, the 1 Series offers sublime handling, a quality cabin and – not to be underestimated – badge cache.

But with brand new rivals including the new-generation Mercedes-Benz A-Class and Audi A3 just around the corner, the little Beemer is soon to face its biggest challenge. We think it should be up to it.

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