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The new 2025 BMW 118 hatch punches well above its weight and delivers a truly premium experience in a compact, city-friendly footprint.
It’s not often I drive a base model and feel like it’s the absolute sweet spot – but this 118 is a standout exception.
In fact, there’s very little ‘entry-level’ about it at all.
Design: M Sport as standard
From the moment you walk up to the 118, it looks the business.
That’s because M Sport styling package is standard on the new 1 Series in Australia – meaning you get aggressive front and rear bumpers, 18-inch alloys, and satin trim details.
All that spells proper road presence, and that’s not the half of it.
The updated front-end design with slimmer LED headlights (now adaptive with cornering lights), a cleaner kidney grille, and a more sculpted overall profile gives it a sharper, more focused stance than before.
It’s lower, wider, and sleeker than the outgoing model – without looking shouty.
That said, there’s to more to that restyled kidney grille than meets the eye, especially when the sun goes down and you’re greeted with the ‘Iconic Glow’ that lights up.
Then there’s the blue-lit accents inside the sleek headlight assembly. It not only looks cool, but BMW’s lighting tech is top-shelf and on full display as part of its standard equipment inventory.
Even the rear lighting signature is a treat for the eye and adds significantly to its premium aesthetic. In addition, there’s a cool light show sequence on display as you walk up to it and it automatically unlocks.
There’s another very cool yet subtle badging feature on the 118 Sport Collection test vehicle I drove, which is the number ‘1’ stamped into the C-pillars, given the standard ‘118’ badge is omitted from the tailgate.
Interior: Minimalist, tech-laden and properly premium
Step inside and you’re greeted by a cabin that borrows heavily from the X1 small SUV – and that’s a very good thing.
You get the beautifully integrated BMW Curved Display, which merges a 10.25-inch digital instrument cluster and a 10.7-inch infotainment touchscreen running BMW’s latest Operating System 9.
It’s fluid, fast, and packed with features including voice assistant, wireless Apple CarPlay/Android Auto, cloud-based navigation, and even a digital key if your phone supports it.
There’s no iDrive dial anymore, but the new touch-first layout is intuitive and aided by ultra-sharp screens offering instantaneous response.
The overall feel is properly premium, with nice materials for all the key touch points and an ergonomic driving position that’s just spot-on.
The sports seats up front are thickly cushioned, extensively bolstered and some of the most comfortable in the business. They’re also heated, electrically adjustable and offer memory settings for the driver.
BMW has also nailed the interior accents in its entry-level offering. I particularly like the perforated aluminium trim that’s also lit and far more visually appealing than the usual ambient lighting strips so common these days.
Best of all, in Sport mode, you get all three BMW M colours lighting up, along with M-coloured stitching on the dashboard.
This is one variant you’d never believe is BMW’s entry-level play. And that luxuriously leather-wrapped M steering wheel is a joy in your hands. There’s so much good kit on display in this cabin – even the six-speaker audio system sounds the business.
Performance and driving: Surprisingly zippy, properly sorted
Now, let’s talk about how it drives. Under the bonnet is a turbocharged 1.5-litre three-cylinder petrol engine making 115kW of power and 230Nm of torque. It’s paired with a snappy seven-speed dual-clutch auto, sending power to the front wheels.
Don’t let this engine’s small displacement fool you into thinking you need more. There are several advantages of this turbo triple compared to a more common turbo four – chief among them being weight reduction.
It’s more compact too, which also improves weight distribution, and it delivers punchy, torque-rich performance from low revs. And I reckon the slightly off-beat growl also sounds better.
The chassis is beautifully balanced, and the steering is sharp and confidence-inspiring. It’ll do the 0-100km/h sprint in around 8.5 seconds, which is brisk for a city-sized hatch, and more than enough for both everyday driving and spirited backroad dashes. It will surprise many, including some enthusiasts.
Dial up Sport in the drive-mode settings and shift manually via the paddles and you’ll find the BMW 118 completely satisfying.
It also has adaptive damping as standard, which is almost unheard of at this price point. Ride comfort isn’t just good, it’s exceptional –thanks in part to its 18-inch wheel/tyre combo – and body control is tight and very nicely composed.
Overall, it’s classic BMW in feel, just in a smaller package.
Efficiency and practicality: Everyday hero
BMW claims a combined fuel consumption figure of 6.4L/100km, and our real-world testing suggests that’s achievable without having to drive like your grandma.
With a 49-litre fuel tank, you’re looking at over 750km of range, which is impressive for a sporty hatchback.
There’s also plenty of room for your gear. Boot capacity is 380 litres, and the rear seats fold down to give you more than 1000 litres of cargo space – enough for weekends away or the annual IKEA run.
It’s one of the more practical options in its class, and rear seat space is decent for two adults.
Safety and assistance: No corners cut
BMW hasn’t skimped here either. The 118 comes loaded with the full suite of active safety tech, including:
- Blind spot monitoring
- Lane keep assist
- Speed-limit recognition
- Adaptive cruise control
- 360-degree parking sensors
And of course, adaptive LED headlights are standard fitment, as is a head-up display.
While many new cars can actually be distracting due to overly intrusive Advanced Driver Assist Systems (ADAS), the BMW 1 Series’ driver safety aids feel natural from behind the wheel.
Value: Entry-level doesn’t mean entry spec
Priced from $58,100 before on-roads, the 2025 BMW 118 undercuts many of its German rivals while offering more standard kit, a more engaging drive, and an interior that genuinely feels a class above.
With the M Sport package, adaptive suspension, and cutting-edge tech all rolled in, it’s genuinely hard to find better value in the premium hatch segment right now.
It’s also worth noting that BMW offers the 118 Sport Collection, which sits alongside the standard 118 but adds extra value with features such as metallic paintwork and a panoramic sunroof.
This package enhances the appeal for buyers seeking a more premium look and feel, while still maintaining a sharp pricing advantage.
Verdict: The right kind of entry-level
The 2025 BMW 118 isn’t just a stepping stone into the BMW brand – it’s a proper BMW in every sense. It looks sharp, drives beautifully, and is packed with features that make everyday life easier and more enjoyable.
It’s proof that you don’t need large displacement powertrains or all-wheel drive to have a great time behind the wheel – just the right ingredients, well executed. And BMW has absolutely nailed the recipe here.
In a segment filled with safe, samey choices, the 118 stands out as a sporting luxury hatch done right for drivers, with more comfort and a better ride/handling balance than cars costing tens of thousands more.
MORE: Explore the BMW showroom