BMW targets Toyota, Subaru and Honda

Here's a turn for the books. While most mass-market car makers try to pitch themselves upstream to premium brands, German maker BMW is getting some of its own back with a car designed to steal customers away from mainstream models.

BMW is about to launch an assault on the highly competitive compact softroader market with its new baby X1, an optical illusion of a car that at first glance looks like its big brother BMW X5 4WD, but in fact is only 4mm longer than a Toyota Corolla sedan.

And starting at $43,500 the BMW X1 is only a small price jump away from the more expensive versions of Australia's most popular softroaders.

"We think people will make the small stretch from vehicles such as the top end versions of the Subaru Forester, Toyota RAV4 and Honda CR-V," says BMW Australia's marketing manager, Tom Noble.

"We are seeing that already in the customer enquiries we've received in the lead-up to this vehicle. These are the types of cars they are currently driving."

The BMW X1 goes on sale on April 10, but dealers have been giving customers a sneak peek, with a handful of cars arriving in showrooms last week.

"In the lead-up to this past fortnight we have accumulated 3000 expressions of interest in the X1. The last time we had this level of enquiry about a car before launch was the 1 Series of a few years ago."

Indeed, the X1 could outsell the BMW 1 Series hatch locally. Almost one-third of BMW sales in Australia are of the X series of softroaders. And with the larger X3 softroader due to be phased out of production later this year, ahead of an all-new model next year, chances are demand for the X1 will significantly exceed supply.

BMW is so concerned about global demand that it has postponed the launch of the X1 in North America, the biggest market for the X1, to give other regions a chance.

In Europe, where the Leipzig-made X1 has been on sale since last November, sales are running 200 per cent ahead of target.

Australia will only receive 1400 BMW X1s before the end of this year, and the maker expects they will be allocated quickly.

"We think this is the right car at the right time," says Noble. "People are either downsizing or can finally afford to make the step to a luxury brand."

A large part of the X1's appeal is the clever, usable cabin space in a relatively compact, easy-to-maneouvre package that's ideal for the city and suburbs.

Prospects for the X1 are already reflected in the rest of BMW's local line-up. Driven by a surge across most models in the range, BMW Australia sales so far this year are up by 25 per cent in a market that is up 14 per cent.

But the maker insists its cars are not becoming too common.

"The more cars you sell, sure the more common they are in some areas," says Noble. "But by expanding the range, and giving different buyers a choice of different vehicles, we can keep the brand fresh and unique."

A decade ago BMW had three sedans and a couple of sports cars in its line-up. It now has 15 models, and the addition of the X1 will lift that tally to 16 models.

Last week, the German maker also announced a new front-drive car to be based on the next generation Mini underpinnings, to be positioned beneath the 1 Series hatch. It is due within the next few years.

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