BMW X1 to secure SUV crown

As the new BMW X1 arrives in Australia from under $50,000 at one end of the SUV spectrum this week, the seven-seat X7 is looming at the other in a couple of years, leading the German brand to declare it will continue to dominate the prestige SUV segment in Australia.

Although the price of the new X1 has risen slightly to $49,500 for the sDrive 18d model, the importer says its sharp new design, improved interior space and increased feature list will ensure its success.

"Demand will be very high [for X1]. We're going to sell a lot of these models in Australia," said BMW Group Australia's X model product manager, Brendan Michel, at the X1's national launch in Coffs Harbour.

So far in 2015 a staggering 42 per cent of new BMW vehicle sales are SUVs, or X models in BMW-speak, and Michel reckons that in 2016 that figure could rise to 50 per cent – the X1 being a key part of that growth.

As BMW's most affordable SUV, the X1 will be a conquest vehicle too. That is, an estimated 75 per cent of buyers will have not owned a BMW before, claims the importer.

Hoping to take the fight to the segment leader, Audi's Q3, which is almost $7000 cheaper ($42,900), Michel asserts that the new design, larger interior and improved specification will ramp up sales, in a market segment that has boomed by a whopping 80 per cent in the last 12 months, from 4577 to 8261 units.

The Lexus NX ($52,500) and Mercedes-Benz GLA ($48,300) have swelled the small prestige SUV segments' ranks, rising from obscurity to snag third and second spots on the ladder, knocking the X1 off its second-placed perch. The Q3 continues to flourish as the top-seller in the range, with 2588 sales, or 31.3 per cent market share.

The BMW X1 currently has 10.7 per cent market share of the small prestige SUV segment, down almost 30 per cent the year prior, as dealers deplete stock ahead of the new model's arrival.

The X1 has swapped from a rear-drive to a front-drive platform, shared with MINI vehicles but Michel says the new X1 has been engineered for driving enjoyment. It also has more occupant room and a 20 per cent larger boot, now 505 litres, with adjustable rear seats.

And it's not just for driving between A and B, said Michel, "but C, D, E and F too".

"You can take it skiing and mountain biking and it has X-factor – it's the design. It's going to stand out like nothing before in the segment," said the product boss, arguing that the design will attract more – and younger – buyers than before.

Increased standard equipment will also sweeten the deal, with all models getting an eight-speed [Aisin] automatic transmission, reversing camera, autonomous emergency braking (AEB), parking sensors front and rear, satellite navigation with real-time traffic info and Internet functionality (with SIM card).

It gets a number of exterior additions such as 18-inch alloy wheels, LED headlights and LED 'angel eye' running lights.

Available in front and all-wheel drive, the X1 tops out at just under $60,000 for the xDrive25i variant. Check out the model range, engine types and pricing here.

BMW Group Australia's CEO, Marc Werner, says it has no plans to relinquish its prestige SUV sales crown in this country, and the X1 will be a key part of this plot.

"BMW pioneered the segment and we continue to out-perform other brands in sales of these vehicles. We have the full line up of X vehicles, much experience in this field and a large base of happy and satisfied customers," he observed.

"Significantly, these customers know the SAV they buy has real BMW DNA and engineering prowess behind them. Unlike some of our competitor vehicles, which have borrowed technology in their rush to join the market.

"They are late to the party but it's our party. It's always been our party and we clearly intend to keep it that way," proclaimed Werner.

"With vehicles like the BWW X1 we are confident we can do just that."

BMW now offers an SUV in almost every segment with the X1, X3, X4, X5, and X6, and in a couple of years will offer the X7, a rival to Mercedes-Benz GL (soon to be GLS) behemoth.

"The X7 is not only on the wish list but is soon becoming a reality," Werner told motoring.com.au.

"The Australian team here has done a fantastic job in order to turn this into reality and the Australian market will be one of the biggest markets when it comes to the X7.

"We do see a good opportunity for that car in Australia. It’s a logical next step for us," he said.

Asked what the new X7 will bring to the table, where the X5 already offers seven-seat capability, Werner responded: "Even more space, even more functionality, even more presence. These things in particular are what Australian families demand."

It's not clear whether the X7 will be an ultra-luxury model like the 7 Series sedan, but it's likely to go close – if not over – $100,000, considering it needs wiggle room to be priced above the circa-$80K BMW X5.

"If you look at the pure numbers, X7 stands above X6 so you would expect it to be more expensive," said the BMW Australia CEO.

Although he wouldn't be drawn on its local launch date, it’s understood the hulking X7 could arrive late in 2017 or more likely in 2018, providing BMW with new flagship to top its prestige SUV range.