Likes
Dislikes
BMW has made so much noise about its latest electric 'Neue Klasse' models, the iX3 and i3, it's easy to forget about its expansive line-up of internal combustion models.
While the shift to electrification is undeniable, there's still a healthy appetite for petrol cars, especially when it comes to high-performance models like the BMW M135.
Even though the hot hatch segment is slimmer than it once was, there's still a few solid options at the premium end.
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At $85,500 before on-road costs, the BMW competes with other Germans including the Volkswagen Golf R ($71,990), Audi S3 ($78,800) and Mercedes-AMG A35 4Matic ($89,700) as well as Japan's finest, the Honda Civic Type R ($85,000), although the latter is manual only.
2026 BMW Mi35 standard features
So it's more affordable than the Benz but pricier than the Audi. Luckily BMW includes a healthy standard features list for the M135.
The M135 comes with the following:
On top of that the safety offering includes:
The Brooklyn Grey metallic paint of the test car is a $1700 option.
For too long BMWs and other European carmakers scrimped on features, instead relying on their premium brand position to sell cars. Not anymore. The standard features list in the M135 stacks up and it makes for a properly premium small car.
The ins and outs of the 2026 BMW M135
A couple of years into its lifecycle, the 1 Series is still a handsome little hatchback, with a squat stance and lovely proportions. The redesigned front end gives it a sharper modern look, too.
Inside it features integrated twin screens familiar to other BMW models and while it doesn't have the latest in-car tech from the iX3, it's still an appealing cabin. The screens and air con vents are all angled towards the driver which adds to the cockpit feel.
There are few buttons aside from what's next to the gear shifter on the console - drive modes, demisters, hazard lights - but the cabin doesn't feel overly minimal.
Being an M Performance model the M135 gains some snazzy interior touches like red and black synthetic leather upholstery on the seats and door panels which brightens the space considerably. It's sporty yet still looks premium.
Those front seats offer the perfect level of upper and lower body support. Some BMW M car seats are so heavily bolstered they're almost uncomfortable. That's not the case here. The M steering wheel has a flash of red at 12 o'clock and like most BMW tillers it's a bit too thick for me. But the paddle shifters look good and got some use during a dynamic drive.
Storage wise there's a long but shallow centre bin, a couple of cupholders and a wireless charger. The door bins are awkwardly shaped so only smaller bottles will fit, but there is an extra nook for other items.
The multimedia setup is not as intuitive as the latest setup in the iX3. The app page features lots of little icons that change dynamically based on what you've used most recently. It's not a challenging system to navigate, which is a plus. There's two USB-C ports up front if required.
The panoramic glass sunroof only has a mesh fabric blind and while it's much better than some similar shades from other makes, nothing can beat a solid blind when it comes to keeping Australia's blazing sub out of the cabin.
Rear-seat space is tight
Sitting behind my six-foot tall driving position, the rear row is quite cramped. Legroom is tight - my knees touch the back of the front seats.
The roof has been scalloped out for more headroom but it's still tight because of the sunroof. It has a bulky transmission tunnel so the middle seat is all but useless. There's two USB-C ports, short and narrow bottle holders, a centre armrest with two cupholders and knee-level air vents.
Boot space is 380 litres (increasing to 1200L with the rear seats folded) which is better than the Audi S3 (325L). It has a powered tailgate standard. There's no spare wheel, only an awful repair kit, but the M135 has handy dual-level boot storage.
BMW's powerful petrol engine
Under the sculpted bonnet of the M135 is a 2.0-litre four-cylinder turbocharged petrol engine delivering 233kW of power and a meaty 400Nm of torque. It drives all four wheels via BMW's xDrive system and has a seven-speed dual-clutch 'Steptronic' transmission.
It can hit 100km/h in just 4.9 seconds and official fuel use is 7.8 litres per 100 kilometres. Over a week of both easy urban driving and enthusiastic back road blasts, I recorded a thirstier 10.3L/100km.
M Performance on a twisty road
Poke your right foot and you're met with a beat of turbo lag followed by incredible acceleration - that 0-100km/h time is no joke.
The engine note is also a delight and adds to the whole experience.
BMW's smooth seven-speed dual-clutch snaps through the gears at the perfect time almost every time. Accelerating quickly to a lower speed limit might require a flick of the paddle shifter.
The brakes with the sexy blue callipers are incredibly strong and the steering is super sharp, changing direction crisply.
The M135 has loads of grip, holding on to the road even when pushed up a sharp, sweeping incline. Phenomenal stuff.
Ride quality is mixed - it's firm which isn't surprising for a European hot hatch that's designed for performance driving. It's less noticeable at speed on a twisty back road.
That firmer ride is more evident driving on pockmarked urban roads at lower speeds, where it can get a little jiggly. But by no means would this sway me from owning the M135.
Drive modes include Personal, Sport and Efficient - I didn't bother trying the latter.
Sport mode makes the BMW even quicker, to the point where you need to hold the steering wheel even tighter, particularly on uneven road surfaces. I never felt in danger of losing control or even losing traction.The engine note amps up a notch, too.
One quirk that won't annoy everyone is the auto stop/start. I turned it off every time I drove the car as I found it a little laggy.
The advanced driver assist systems work without interruption in the background. No need to switch any of these off. European brands like BMW continue to lead the way with this tech.
The M135 is covered by BMW's five-year/unlimited kilometre warranty which is now the norm for premium brands. BMW's 'condition-based servicing' means the car's computer tells you when it needs a service. Currently a five-year/80,000km pre-pay package is $2470.
Verdict
The high-end hot hatch segment is small but mighty. Audi, BMW, Mercedes-Benz, VW and Honda lead the way in this category, but the Bimmer might offer the best value.
Many people will argue that $85,000 is far too much to pay for a small hatchback. I disagree. Size should not determine the worth of a car. There's a premiumness to the BMW M135 that's deeply appealing. The level of precision that goes into engineering a car like this is something to behold. And the way the M135 performs, virtually without fault, is a marvel.