THE 318i model is available with a five-speed manual or four-speed automatic transmission. The manual features a direct 1:1 ratio in top gear, a relatively short throw and a self-adjusting clutch which provides consistent pedal pressure regardless of wear. The auto features BMW's Adaptive Transmission Management (ATM) system, which adjusts to the differing road and driving demands. 318i Executive models have Steptronic semi-manual gear selection.

Higher models come with a five-speed auto.