The 118 has a price increase of $1000 (from $54,500 to $55,500) over the previous model but is faster, has better fuel efficiency (5.9l/100km compared with 7.8l/100km) and carbon emissions of 137g/km compared with 182g/km.
The recommended retail price of the 116i manual, which has a new 1.6 litre four-cylinder turbocharged petrol engine, starts at $46,600.
The new 116i has the same power output of the previous entry model, the 118i, despite using 24 per cent less fuel (5.7 litres/100km).
But the 1 Series still can't compete with the packaging advantages of rival front-drive hatchbacks, especially in the rear seats where the driveshaft tunnel takes up room.
A test drive north of Melbourne of the 118d and 118i this week left a lasting impression. Both vehicles were especially refined, although not as accurate and appealing as the 3 Series range.
The diesel 118d makes 105kW and 320Nm and gets stop-start to aid fuel usage and cut CO2 emissions. It averaged 5.4 litres/100km over a mix of roads.
The 118i is even more refined but can't match the diesel's economy. In a nutshell, the new 1 Series ticks most boxes.