BMW X1 wins CarExpert Choice for best luxury small SUV for second consecutive year

From laggard to leader, combining tech, practicality, and driving finesse
CarExpert's assessment of how the BMW X1 has transformed its position in the compact luxury SUV segment.

For the second consecutive year, BMW's X1 has been named Australia's best luxury small SUV by CarExpert, a verdict that reflects a broader truth about how a once-hesitant entry into the compact premium segment has matured into a benchmark. The Munich automaker has achieved something rare in the automotive world: a vehicle that satisfies both the pragmatist and the enthusiast, the newcomer and the loyal devotee, without asking either to compromise. In a segment crowded with credible alternatives, the X1's continued dominance suggests that genuine refinement, when sustained across generations, eventually becomes its own argument.

  • The X1 has now won Australia's top luxury small SUV award back-to-back, defeating the Cupra Formentor and Volvo XC40 in a segment that has never been more competitive.
  • Its electric sibling, the iX1, simultaneously claimed best small electric SUV for a second straight year — a rare double that signals BMW's grip on the compact premium space is no accident.
  • For 2026, BMW has widened the X1's appeal by adding mild-hybrid efficiency to entry grades and introducing a new plug-in hybrid xDrive25e, closing the gap between combustion and full electric.
  • The powertrain range now stretches from a frugal three-cylinder base engine to the turbocharged M35i, meaning the X1 can credibly court both the cost-conscious family buyer and the performance-minded driver.
  • What began as a tentative compact offering has landed as a class leader — one that reviewers say delivers premium dynamics and technology even at its most affordable trim level.

The BMW X1 has taken the CarExpert Choice award for best luxury small SUV in Australia for the second year running, edging out the Cupra Formentor and Volvo XC40 in a segment that demands both refinement and value. The win is made more striking by the parallel success of the iX1, BMW's electric variant, which also claimed best small electric SUV for a second consecutive year — a double that points to a coherent strategy rather than a lucky result.

The X1's appeal rests on its refusal to force buyers into trade-offs. It delivers the handling, infotainment, and interior quality that BMW loyalists expect, without the footprint or price of larger models in the range. Those stepping down from a bigger BMW find little to mourn; those arriving new to the brand find more than they anticipated.

For 2026, the proposition has been sharpened. Mild-hybrid technology now comes standard on entry grades, and a new plug-in hybrid xDrive25e variant joins the lineup, offering a middle path between combustion and full electric. The range now spans from a three-cylinder base engine to the turbocharged M35i, covering frugal commuters and driving enthusiasts alike.

When CarExpert first tested the entry-level sDrive18i, the conclusion was that BMW had turned a former also-ran into a genuine class leader. Two years on, that verdict has only hardened — the X1 has become the rare car that makes the question of compromise feel beside the point.

The BMW X1 has claimed the CarExpert Choice award for best luxury small SUV in Australia for the second year running, a recognition that speaks to how thoroughly the Munich automaker has refined what was once a tentative entry into the compact premium segment.

The X1 edged out two worthy competitors—the Cupra Formentor and Volvo XC40—to take the top spot. But the win extends beyond the gasoline model itself. The X1's electric sibling, the iX1, has also captured the award for best small electric SUV for a second consecutive year, suggesting BMW has built something that works across multiple powertrains and appeals to different kinds of buyers.

What makes the X1 compelling is its refusal to compromise. It delivers the things BMW owners expect—responsive handling, contemporary infotainment, a thoughtfully assembled interior—without the size or the price tag of larger models in the range. Buyers stepping down from a bigger BMW don't feel they've sacrificed much. Those new to the brand find a level of refinement and sophistication that punches above its class weight.

For 2026, BMW has sharpened the proposition further. The entry-level grades now come with mild-hybrid technology, squeezing better efficiency from the base engine. A new plug-in hybrid variant, the xDrive25e, joins the lineup, giving buyers a third path between pure combustion and full electric. The powertrain roster now spans from a frugal three-cylinder engine all the way to the M35i, which pairs a turbocharged 2.0-litre four-cylinder with genuine performance credentials. That breadth means there's something for the budget-conscious buyer and something for the enthusiast.

When CarExpert tested the entry-level sDrive18i at launch, the verdict was clear: Bavaria's premium small SUV had transformed from a laggard into a leader, combining technology, practicality, and driving finesse even at the bottom of the range. Two years later, that assessment holds. The X1 has become the kind of car that doesn't ask you to choose between what you want and what you can afford—it simply delivers both.

Bavaria's premium small SUV has gone from being one of the class laggards to a new leader, with a blend of tech, practicality, and driving finesse even from the entry-level grade
— CarExpert review
A Conversa do Hearth Outra perspectiva sobre a história
Inventor

Why does a small SUV win an award two years in a row? Doesn't the market move faster than that?

Model

Not when a car gets the fundamentals right and then keeps improving them. The X1 wasn't always this good—it used to be seen as the weak link in BMW's lineup. Now it's the standard.

Inventor

What changed?

Model

BMW stopped treating it like a compromise. They gave it real handling dynamics, proper technology, and an interior that doesn't feel like you're settling. Then they listened to what buyers wanted—hybrids, plug-in options, efficiency.

Inventor

So it's not just one thing that makes it win?

Model

No. It's the combination. You get a car that drives like a BMW, feels premium inside, and now comes in five different powertrain flavors. That's rare in this segment.

Inventor

The iX1 winning twice too—is that the same story?

Model

Partly. But electric buyers have different priorities. They care about range, charging, practicality. The iX1 delivers on all three without the usual electric car compromises.

Inventor

What does it mean that it beat the Volvo and the Cupra?

Model

Those are both excellent cars. But the X1 found the sweet spot between sportiness and comfort, between technology and usability. It's the car that works for the most people.

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