BMW 320d ED

We already know the sixth-generation BMW 3 Series is a fantastic car, as it was crowned Best Compact Executive model at our New Car Awards 2012. It’s bigger and better built than before, plus is packed with standard kit. But has this increase in size and space taken the green edge off the EfficientDynamics version?

On paper, it doesn’t seem like much progress has been made as the most frugal model in the new range has the same power and torque output as the outgoing car. Also unchanged is the headline 109g/km CO2 figure – but that still means the BMW is the cleanest car in the compact exec class.

As with the standard car, the ED boasts sharp and athletic looks. However, it’s the only model in the line-up to come without the combination of 17-inch alloys and run-flat tyres – and its smaller 16-inch wheels look a bit lost in the arches. Still, the special eco tyres promise 15 per cent lower rolling resistance – which boosts fuel efficiency – without any loss in performance, and the tall sidewalls make for a comfortable ride.

The underside of the 320d ED has been streamlined to minimise drag, while the sculpted front bumper and covers at the rear create a diffuser-like effect.

Yet apart from the special wheels, the newcomer is almost impossible to distinguish from the regular 320d, so its remarkable environmental credentials can remain a secret.

Stretching the wheelbase by 50mm over the old car has also paid dividends inside, where rear passenger space has been greatly improved. Boot capacity has also grown, with the car now capable of carrying a decent 480 litres of luggage.

The BMW does have a higher loading lip than the Audi, although options like the interior storage pack help to enhance flexibility. This £650 extra brings 40:20:40-split folding rear seats, plus luggage nets behind the front seats and across the boot – although the folding rear bench can be bought on its own for £390.

Up front, the dash is orientated towards the driver, but the smart rows of switches and slender multifunction steering wheel mean the design feels just as upmarket as the Audi’s. It’s more modern, too, and BMW’s excellent iDrive cabin controller – mounted next to the gearlever – is more user-friendly than the A4’s standard centre console info screen.

Another new piece of technology is the Drive Performance Control system. We’ve been impressed by this in other 3 Series, with its three settings – ECO PRO, Comfort and Sport – giving different characteristics to the steering, throttle and electronic safety systems.

Select ECO PRO mode and artificial resistance is added to the 320d ED’s throttle, while the climate control and gadgets like heated seats are switched to their most efficient setting. This tool also allows you to plot your fuel economy according to the trip computer over a set period of time, and even set a speed reminder with fuel-saving tips.

But what if you’re not trying to maximise fuel efficiency? Well, although the car is bigger than before, it’s also 50kg lighter, at 1,490kg, so it’s faster – despite the fact the ED’s six-speed box has longer gearing than in other 3 Series.

The BMW has 27bhp more power and 60Nm more torque than the Audi – at 161bhp and 380Nm – so we weren’t surprised that it was seven-tenths faster from 0-60mph at the test track, recording a time of 8.8 seconds. The 320d pulled harder in-gear as well.

The stop-start system felt a bit abrupt compared to the Audi’s, while the engine is gruff at low revs. But once you’re up to speed, the 3 Series settles into a composed cruise.

Push on and the precise brakes and direct electromechanical steering give you the confidence to exploit the finely balanced chassis. This nimble handling remains the BMW’s strongest selling point, yet while it encourages keen driving, the car still returned a very respectable 56mpg in our hands.

Some buyers may be put off by the higher price, but the 320d ED is a cheaper company car choice, uses less fuel, is backed by a great-value pre-paid service pack and has stronger residuals. It’s looking good for the BMW.

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Chart position: 1Why? The latest EfficientDynamics version of the 3 Series is bigger, lighter and faster than the model it replaces, yet promises to be cleaner and more efficient.