Hybrid will top 3 Series range

BMW will join Australia's luxury hybrid market in October with its first two petrol-electric models, but while the new ActiveHybrid 3 will be the German brand's most affordable hybrid it will also be the most expensive 3 Series.

Unlike the new 5 Series-based ActiveHybrid 5 sedan, which will be priced between the six-cylinder petrol 535i (from $115,600) and the V8-powered 550i ($179,900), the ActiveHybrid 3 will be positioned at the top of BMW's new 3 Series sedan range -- at least until the new M3 arrives.

Although some examples of the ActiveHybrid 5 are already in the country undergoing sales and technical training in preparation for BMW Australia's hybrid model rollout, customer cars will not become available until around October -- when the ActiveHybrid 3 will also go on sale here following its European launch next month.

As we've reported, BMW Australia's first two hybrid models will be joined early next year by the ActiveHybrid 7 -- the petrol-electric version of BMW's facelifted 7 Series limousine, which goes on sale here in October.

BMW Australia Head of Corporate Communications, Piers Scott said the ActiveHybrid 3 is expected to be the brand's top-selling hybrid in Australia in the medium term, but he also confirmed it will be the most expensive (non-M) 3 Series varaint.

It's not unreasonable to expect the company will also apply its hybrid technology to the 1 Series range, given BMW presumes hybrid power will do better in the more compact form of the 3 Series than the 5, "and have stronger volume potential".

"ActiveHybrid 3 will represent a performance hybrid that would bring a (price) premium over the existing 335i," Mr Scott told motoring.com.au at this week's launch of the two newest 3 Series arrivals, the 318d and 320i.

Customers will enjoy "fuel economy gain and performance at a level not currently offered in the 3 Series range," said Mr Scott.

According to details available at its unveiling in Detroit earlier this year, the hybrid 3 Series consumes around 6.0L/100km and its 0-100km/h acceleration time is less than six seconds.

BMW's ActiveHybrids will be sold through major metropolitan dealers in the early stages but from a servicing perspective, BMW wants total coverage. "We need the capability to service the ActiveHybrids anywhere they might turn up in the country," said Mr Scott.

Unlike luxury hybrid pioneer Lexus, for BMW a hybrid option is "uncharted territory," admits Mr Scott, who concedes his company's focus on diesel -- which represents more than half of all BMW sales here -- would make positioning hybrid technology difficult for the Munich maker here.

"We have made life difficult for ourselves in the sense that we've made such a strong case around our high-performance diesel engines and continue to do so.

"It's a challenge to sell hybrid alongside such good diesel technology."

Where the ActiveHybrid 5 will be priced in relation the 535d diesel, which at $120,900 commands a $5300 premium over the petrol 535i, is unknown but the ActiveHybrid 3 will be more expensive than the new petrol-powered 335i ($91,900), potentially making BMW Australia's cheapest hybrid cost more than $100,000.

In addition to its EfficientDynamics and now hybrid offerings, BMW also has its electrified 'i' models in the offing.

Mid next year BMW will unveil its first fully electric production car, the i3, and following it will be the plug-in hybrid i8 super-coupe.

BMW says the i3's most relevant application is in "mega-cities" of more than 10 million people, and Mr Scott said supply will be allocated accordingly, meaning Australians are more likely to see the i3 in early 2014 -- the same year the i8 will be launched in Europe.

No particular technology is expected to "win out" and become the dominant drivetrain in the medium term, said Mr Scott, but we can expect to see further development "leapfrog current technology down the track".

"It's about applying the most suitable technology of the day to the right vehicle segment at the right time," he said.

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