Market Insight: 1 Series remains relevant

BMW has launched its F70 generation 1 Series in Australia this week, the entry model remaining what the German importer says is an important part of its range, despite more solid sales numbers from its X1 SUV – which almost doubles the numbers achieved by the 1 Series annually.

Speaking with GoAuto at the Australian launch of the 1 Series in Melbourne this week, BMW Australia product and pricing manager for the 1, 2, 3 and 4 Series Prabs Datar said the model remains an important entry point to the brand.

“It definitely fulfils that purpose for the brand – and I think there is definitely space in the market for premium small sedan and hatch models,” he said.

“There is still a need for that entry point for the Australian customer – and the hot hatch especially. That’s why the M135 xDrive was on our tick list when we were planning this car.

“Overall, I think the 1 Series of the past had its foundations in rear-wheel drive, and when we pivoted to front-wheel drive we made sure it retained its driving dynamics and its overall ability, and made sure it didn’t grow too large in respect to others in the segment.”

Those considerations, and the obvious lean towards M-branded models throughout the BMW portfolio is key, says Mr Datar, to returning buyers to the 1 Series brand.

He said that while the model remained important in its role of attracting new buyers to the brand, it was likewise one that resonated with return customers – especially in the segment’s sportier end – who see the 1 Series as something of a sweet spot in the range.

“Looking at the F40 (previous generation) volume, there was a definite skew towards the entry point, the 118i, which was approximately 50 per cent of total sales,” he said.

“The remaining 50 per cent was split quite evenly between the 128ti and 135i, and we expect to see a similar skew towards the new 118 really – there will always be that desire for new buyers to get into the brand.

“We also find that 1 Series buyers tend to stick with the 1 Series, we see a lot of repeat business. Many say they like the size and the packaging, and that the level of equipment and performance really suits them.”

Mr Datar said previous generation 1 Series sales (which commenced Down Under in 2019) tallied close to 9500 units (9438) with 5941 of those being 118i buyers, 1242 being 128ti buyers, and 2255 being 135i xDrive buyers.

Despite dropping the mid-tier 128ti, Mr Datar says the importer expects to achieve a similar sales split – and outright volume – from the F70 generation 1 Series, a car he maintains will continue its volume performance despite an increase in price.

“To have the entry point so well specified, the reality is that it brings that car very close to what is offered in the 135 xDrive,” he explained.

“I think the 128(ti) would be a nice-to-have at the moment, but we’re pretty happy in what we think can be achieved with the two offerings we have in the market.”

Year-to-date sales show BMW has achieved sales of 1084 (5.4 market share points) 1 Series models against 1837 examples (9.2 market share points) of the Mercedes-Benz A-Class and 2334 examples (11.7 market share points) of the Audi A3.

For 2023, the BMW 1 Series placed third against its key competitors with 1755 sales (7.8 market share points). The Mercedes-Benz A-Class placed second (with 2392 units sales and 10.6 market share points) and the Audi A3 first (with 3319 units and 14.7 market share points).

Those numbers follow closely the same trend as in 2022 where BMW again placed third (1426 units / 16.3 per cent share) behind Audi (2110 units / 24.2 per cent share), and Mercedes-Benz (2840 units / 32.5 per cent share).

In 2021, the Small passenger over $40K segment 1 Series ranked second with 2741 unit sales (27.2 per cent share) behind the Mercedes-Benz A-Class’ 3793 unit sales (37.7 per cent share). Audi’s change-over A3 model managed just 220 sales for the year, taking a 2.2 per cent share of the segment.

The results for both 2020 and 2019 were significantly higher for all premium Small segment entrants, noting a slowing in popularity of the type against entry-level prestige SUVs.

For 2020, the Audi A3 managed 2778 unit sales and 19.8 market share points against a 2019 figure of 3362 units sales and 26.7 per cent. The BMW 1 Series achieved 2309 unit sales in 2020 (16.5 per cent) and 2269 the year prior (18.0 per cent), while the Mercedes-Benz A-Class led with an impressive 6054 unit sales (43.1 per cent) in 2020 and 4689 unit sales (37.2 per cent) in 2019.

Outside of the 1 Series, BMW Australia head of product Brendan Michel said the brand was tracking well in terms of sales with a raft of new product in 2024 – and the first quarter of 2025 – helping numbers to an all-time high.

“It has been a massive year for BMW Group Australia … and the year isn’t over yet,” he enthused.

“We’ve got the new M4 CS, which of course launches on the back of the M3 CS launched last year, and it goes without saying that the entire M range is very important for us with about one in every five BMWs sold in Australia this year being and M car.

“Then there is the new 1 Series of course, and the new X3, which has just docked in the country, and they’ll be hitting our dealerships over the next two weeks – and we expect to be on sale by the middle of December.

“The new M5 of course is another impressive M car that has just landed … and lastly there’s the enhanced 2 Series and M2 LCI (Life Cycle Impulse). The M2 is probably one of our most important M cars, as I think it is one of our highest selling M cars year-to-date.”

The M car onslaught looks set to continue into 2025 with the M5 Touring arriving on top of a range of other sought-after models, including an additional X3 variant Mr Michel says will “plug a gap in the range”, and well as the 2 Series Gran Coupe and just-released F70 generation1 Series.

“Into next year, there is still a lot more to announce.

“The M5 Touring has already been confirmed for Australia and we’ll be getting our first batch of orders out of January production, so we’re expecting to be on sale in early April next year.

“The X3 30e we expect to be on sale in about February next year and the 2 Series Gran Coupe as well … that’s coming out of November production so it should be on sale on the 1st of March next year.”

BMW 1 Series sales versus key rivals:

*YTD figures to end of November; data supplied courtesy of VFACTS.