The X1 Is BMW's Second-Biggest Seller in Australia
The BMW X1 is no ordinary model in BMW's local lineup. It sits behind only the X3 in Australian sales, which means a significant portion of luxury small SUV buyers are actively considering one at any given time. A major design refresh expected in 2027 changes the buying calculus considerably.
Anyone ordering the current generation today is purchasing a car that has already been photographed in camouflage ahead of replacement. That is not a disqualifier for the right buyer, but it is a fact worth knowing before you sign anything.
The current X1, introduced in 2022, remains a genuinely accomplished small luxury SUV. The upcoming update looks far more significant than a routine facelift, and the spy shots confirm it.
What the Spy Photos Actually Show
The camouflaged prototype caught testing reveals BMW is adopting its 'Neue Klasse' design language for the updated X1. That aesthetic was introduced via concept cars in 2023 and has since filtered into production models, including the new BMW iX3 electric SUV and the upcoming i3 electric sedan.
In practice, Neue Klasse means narrower kidney grilles that sit lower in the front fascia, more tightly integrated headlights with a horizontal graphic, and slim tail lights at the rear. For buyers frustrated by the size of BMW's grilles in recent years, the new direction reads as a reset.
The prototype appears to be the performance flagship given its four exhaust outlets, chunky bumpers and side skirts, wider tyres, and large alloy wheels with blue-painted brake calipers. That blue caliper detail is specific to the current X1 M35i sold in Australia.
Performance Variant: M35 or M40 Badge Expected
BMW does not offer a full M Division version of the X1. Instead, the performance role is filled by the M35i xDrive, which in its current form produces 221kW and 400Nm from a 2.0-litre turbocharged four-cylinder. That engine, codenamed B48, drives all four wheels through a seven-speed dual-clutch transmission.
The updated model will likely carry either an M35 or M40 badge, continuing the pattern. Expect the power output to increase for the new generation, given BMW's broader trend of pushing M Performance models into the mid-200kW range as standard.
The current M35i xDrive sits at $93,900 before on-road costs in Australia. That pricing places it between the Audi Q3 TFSI 195kW quattro at $84,400 and the Mercedes-AMG GLA35 at $99,900. All three will receive updated versions in a similar window, so the competitive set is not static.
The Cabin: Panoramic iDrive Is the Big Story
Inside, the next X1 is expected to take cues from the iX3 and the recently revised BMW 7 Series, both of which feature BMW's Panoramic iDrive system. This is a screen spanning the full width of the dashboard, replacing the traditional instrument cluster and infotainment screen with one continuous display.
The underlying processor has also been significantly upgraded across BMW's Neue Klasse product line, with faster responses and smoother graphics compared to the current iDrive system. For buyers who have sampled the iX3's interior, the direction is already visible.
The current X1's cabin is tidy and functional. It does not, however, feel like the interior of a brand that is simultaneously launching the iX3 and i3 sedan with dramatically more sophisticated displays. The 2027 update closes that gap.
The X2 Gets the Same Overhaul
The spy shots also preview what is coming for the X2, which shares its platform with the X1. Both models are expected to receive the Neue Klasse-inspired design update simultaneously, with the sole visual distinction remaining the X2's lower, more coupe-like roofline.
For buyers undecided between the two body styles, the update timeline is the same. There is no advantage to choosing one over the other purely based on when the new version arrives.
Both the X1 and X2 received new xDrive25e PHEV variants in 2026, marking the first time plug-in hybrid technology has been offered in either model in Australia. If you want that powertrain today rather than waiting for the 2027 update, the option is currently on sale.
The PHEV Angle: Worth Noting Before You Wait
The addition of the xDrive25e PHEV to the current X1 lineup is more relevant than it might initially appear. If your primary reason for waiting is to get a more efficient powertrain, that option already exists in the showroom. The 2027 redesign is primarily an aesthetic and technology upgrade, not a fundamental powertrain overhaul.
Buyers who need a car now and have the budget for the X1 price range should evaluate whether the PHEV variant makes sense at current pricing before deciding to hold off for the new design. Dealers will also have more room to negotiate on current-generation stock as the 2027 launch approaches.
Carseekers helps buyers understand when the timing works in their favour. On the X1, the window between now and the 2027 launch is exactly when current-stock deals tend to improve.
Pricing Context and Dealer Leverage
The period leading into a major model update is the strongest time for buyers to negotiate. Dealers holding current-generation stock know the redesign is coming and are increasingly motivated to move units. That translates to better drive-away pricing, added accessories, and sometimes free servicing on outgoing models.
For the X1, the gap between the current third-generation model and the 2027 version is wider than a typical facelift. The Neue Klasse redesign is a genuine visual generational change. That widens the discount window, because buyers are aware they would be purchasing an outgoing design rather than just a minor update.
At the current $66,700 entry point before on-road costs for the sDrive20i, the X1 is the most affordable way into a BMW SUV in Australia. That entry-level pricing is likely to increase with the updated model, which gives current-generation buyers another reason to consider acting before the 2027 launch.
What to Watch for Next
BMW has not yet confirmed a reveal date for the updated X1 and X2, nor has it released any powertrain specifications. Based on the prototype testing timeline and BMW's typical development cycle, an official reveal is most likely in late 2026 or early 2027, with Australian showroom arrival to follow within six to twelve months.
The design direction is now confirmed. The performance model's exhaust and braking hardware visible in spy shots suggest BMW is not taking a conservative approach to the update. The Neue Klasse aesthetic transformation is coming to BMW's most popular entry point, and it will land in Australia.
Carseekers will track the X1 update as more information becomes available. If you are currently comparing the X1 against the BMW X3 or luxury rivals from Audi and Mercedes-Benz, the incoming model is relevant context for timing your purchase.
Considering finance for your next car? Loanseekers can help you explore car loan options.
The finer details
Your questions answered.
When will the 2027 BMW X1 be available in Australia?
BMW has not yet confirmed an official reveal date for the updated X1. Based on typical development timelines, an Australian launch is expected in 2027, likely 6 to 12 months after the global reveal. The current third-generation X1 remains on sale in the meantime.
What is the Neue Klasse design and how does it change the BMW X1?
Neue Klasse is BMW's new design and technology language, featuring narrower kidney grilles, slimmer integrated headlights, and smoother body surfaces. On the X1, it brings a less aggressive, more refined look compared to the current generation. The iX3, now on sale in Australia, shows what Neue Klasse looks like in production form.
How does the 2027 BMW X1 compare in price to the Audi Q3 and Mercedes GLA?
The current X1 M35i xDrive is priced from $93,900 before on-road costs, sitting between the Audi Q3 195kW at $84,400 and the Mercedes-AMG GLA35 at $99,900. The updated 2027 model's pricing has not been confirmed, but it is likely to be higher than the current generation given the extent of the upgrade.
Does the 2027 BMW X1 come as a plug-in hybrid?
BMW already introduced PHEV variants of the current X1 and X2 in Australia in 2026, badged xDrive25e. These are the first plug-in hybrid X1 models offered locally. Whether the 2027 update retains or updates the PHEV powertrain has not yet been confirmed.
Should I buy the current BMW X1 or wait for the 2027 update?
If you need a car now, the current X1 is a strong performer and EOFY deals on current stock are worth exploring. If the design update matters to you and you can wait 12 to 18 months, the Neue Klasse redesign is a significant visual step up from what is currently in showrooms. The current model is not a compromise, but the new one is a proper generational change.
What engine will the 2027 BMW X1 performance model use?
BMW has not yet confirmed powertrain details for the updated X1. The current M35i xDrive uses a 2.0-litre turbocharged four-cylinder producing 221kW and 400Nm. The updated model is expected to retain a similar turbocharged petrol setup, likely with a modest power increase, and will be badged M35 or M40 given BMW does not offer a full X1 M.



