BMW working on secret Audi Q1 rival

According to German car magazine Auto Motor Und Sport, BMW is already well on the way to creating a direct response to the upcoming Audi Q1 -- and it will go on sale within about a year of the Audi's early 2016 arrival.

Despite BMW describing the story as “pure speculation”, Auto Motor Und Sport is sticking to its guns by saying that not only does the new model exist, but it’s being engineered under the codename ‘Urban Cross’.

Sitting below the X1 crossover, according to the German magazine the Urban Cross is completely unrelated to the X1.

Instead, it’s said to be based on the UKL front-wheel drive platform that underpins the 2 Series Active Tourer mini people-mover as well as the latest MINI family, and will use the similar powertrains.

Like the Q1, the BMW has been described by Auto Motor as more of a jacked-up coupe rather than a traditional crossover in order to attract younger buyers.

According to Auto Motor Und Sport, the Urban Sport will be 4000mm long with a boot space of 330litres, and has been created to sell from €25,000 ($A33,000) in Europe, where its scheduled to arrive in 2017.