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What's the difference?
Giant carmakers seem like pretty sober sorts of places. Everything goes through endless committees, every decision has to be signed off, sent in, sent back, subjected to endless scrutiny to make sure it will make money.
Sometimes, a brand will do something odd like BMW's i3 which is like sending up a flare to get people talking.
Hyundai, for many years, seemed to be trying to emulate Toyota. After a brief flourish in the '90s when it did for curves on cars what Kim Kardashian did for curves on grubby internet sites, the company lost its bottle and tried to go full mainstream. Never go full mainstream, that's for the old folks.
Then, out of the blue, came the Veloster. It's probably one of the most wilfully weird cars in decades (apart from various Citroens, but that's a special case).
One long door on the driver's side, two shorter doors on the passenger side. When BMW did something similar with the Mini Clubman, right-hand drive markets didn't get their own version of the kerb-side door, but Hyundai isn't like that.
Making the Veloster properly in right-hand drive is a wonderful gesture from a company that worked out being itself was a better idea than being Toyota.
There was a big kerfuffle a few years back when BMW made the decision to switch its entry-level 1 Series hatchback from a rear-drive platform to a newer, more efficient front-wheel drive architecture, shared with its Mini sister brand.
Despite the concerns of a few enthusiasts and motoring writers, the impact of the change in driven wheels hasn’t harmed the 1 Series’ reputation or sales.
As with the equivalent entry-level small car models from BMW’s premium rivals, the entry grade 118i is an expensive car for what you get.
But does the 118i hatch have enough charm to transcend the price and spec concerns?
Another good bit of Berry wisdom was the idea that the Turbo is the sweet spot of the range. While the Premium is indeed packed with goodies, they're not must-haves - the Turbo has everything you need while the Premium adds the wants.
So, at its core, this Turbo Premium is good warm hatch fun in a wacky, head-turning body, wrapped around a good cabin that could be a little less plasticky. Best of all, the fun design matches the fun-to-drive personality. It's a thoroughly modern Hyundai and I want (even more) to drive the full-fat bonkers N version we look like we're not going to get.
The 118i has restored my faith in entry-level models from premium brands. Could it do with more standard gear? Absolutely, especially at $50K, and given what you could get in a higher-grade variant from a mainstream manufacturer, like the Mazda3 or VW Golf.
But the 118i is a cut above the mainstream hatchbacks in terms of performance, driver engagement and how the car makes you feel.
If value is the priority, look elsewhere. But if your budget stretches this far and you can live without some of the luxo features, there’s little to complain about with the 118i hatch.
You do not have to find the Veloster pretty to think it's cool. You can see echoes of the i30 donor car that lurks under the more interesting metal, with a big grille, sharper headlights and plenty of black bits to up the aggro for the Turbo model.
The rear bumper sports a pair of drainpipe-sized exhausts that aren't afraid to bellow a bit.
It's different from right to left in profile, with the rear door almost disappearing into the rear haunches on the passenger side. The high rear glass may not be great for seeing out of but it helps keep the Veloster identifiable and influential - there are more than a few cars getting about sporting a similar high rump with big lights.
The cabin is, like its predecessor, fairly restrained and very i30-like. It's all put together very well and is only let down by the centre console's plastics being a bit hard, scratchy and insubstantial.
Since the first-generation model arrived on the scene in the early 2000s, the 1 Series has had a slightly awkward design, partly due to the rear-wheel drive underpinnings. But this latest third-gen model, that debuted in 2019, is by far the most sleek and stylish yet.
This is helped by the slimline tail-lights, rising shoulder line and well-executed front-end design with the signature BMW quad headlights and wide 'kidney' grille.
In Australia the 118i comes as standard with 'M suspension' that lowers the ride height by 10mm, which gives it even more of a hunkered down look. The 'Black Sapphire' paintwork of the test car also upped the sexiness of the little hatch.
The 1 Series, and its competitors from Benz and Audi, are all visually appealing in different ways, ensuring they will each appeal to different buyers.
The interior design is unmistakably BMW, which hasn’t evolved significantly for about 15 years. Although new-generation models like the iX and the soon-to-launch X1 SUV prove that BMW can evolve.
BMW’s overall dash design and layout isn’t a million miles away from the edgy angular look of the new Audi A3 - and that’s no criticism.
The mixed synthetic leather and cloth trim on the seats has a cool blue cloth motif to break up the grey and add a small splash of colour to the cabin. Matching blue stitching on the dash and doors is a nice touch.
I think the Veloster is very clever. M'colleague Richard Berry thinks the third door is a bit silly - say, like a third armpit. I'm of the opinion it's an exceptionally clever solution to a problem: how do I have a funky car without throwing the baby out with the bathwater?
Something like a three door hatch (yes, I know they're out of vogue) makes moving people about difficult even if you only do it occasionally. The Veloster's third door provides relatively easy access to the two back seats for people under about 150cm, and you can get okay access to a baby seat. Try that in an 86.
The new door aperture is quite a bit bigger than the old car and there is a bit more rear headroom which I'd still call marginal for my 179cm frame. Leg and knee room are okay, sitting behind my own driving position.
The boot is a useful if not staggering 303 litres. You have four cupholders across the two rows and door pockets in the front doors. Ahead of the gear selector you'll find a tray with the Qi charging pad and two USB connections, but only one will work with the stereo and is marked as such.
Up front the 118i’s sports seats offer unbelievable levels of lateral support, and despite the bolsters being adjustable, it might be a little too snug for some. It’s expected for a pricey hot hatch but not the lower grade 1 Series. And given how much side support there is, it could do with a touch more under-thigh padding. The driver’s seat is power adjustable while the front passenger has to adjust their seat manually.
The typically chunky BMW M leather steering wheel looks and feels expensive and offers good grip. The minimal steering wheel controls are well labelled with text or clear icons. I appreciated the analogue air conditioning controls instead of them being buried in a multimedia screen menu.
The multimedia system menu is unfussy and while it’s not as tech heavy as some other systems, I don’t see that as a negative. It just means there are fewer functions you’re forced to remember. You can control the system via the 'iDrive' controller in the centre console or it can be used as a touchscreen. I like the way users are given both options. The 10.25-inch screen is nice and wide but quite narrow. Overall, BMW’s operating system is easy to use and functions well.
In terms of devices, the 118i has a wireless charging pad, as well as a USB-A and USB-C port, and a 12-volt charger up front.
It has a smallish central bin, but it’s fine for a number of smaller items. Tall bottles fit easily in the door storage bin and there’s a secondary slot for other items. The 118i comes with a decent sized glovebox, and two front cupholders with a nook for phones just behind it.
The 118i is more spacious than anticipated, especially in the second row. The back of the front seats are scalloped, allowing for a little extra knee room, but there is a good amount of legroom generally, and plenty of headroom, despite the lower roofline.
The rear seats are on the flat side but still comfortable, and there are ISOFIX points on the two outboard seats.
Rear seat occupants have access to map pockets, two more USB-C ports, and storage for big bottles in the doors (just), but there are no rear air vents. The seats fold 60/40 and there’s no central armrest.
Open the hatch and you’ll find a reasonably sized boot that can swallow 380 litres, expanding to 1200L with the rear seats stowed. There is plenty of under-floor storage because there’s no spare tyre on account of the run-flats favoured by BMW. There are, however, a couple of tie-down anchors and shopping bag hooks.
Remarkably, Hyundai has just dropped the second-generation Veloster in Australia. I was convinced it would be a one-hit wonder, but here we are with the replacement for the SR Turbo of the first-generation, the $41,990 Veloster Turbo Premium with a seven-speed dual-clutch auto transmission.
It also has 18-inch alloys with sticky Michelin Pilot Sport 4 tyres, an eight-speaker stereo, sat nav, electric windows and mirrors, keyless entry and start, climate control, reversing camera, rear parking sensors, auto LED headlights, auto high beam, auto wipers, heated and ventilated electric front seats, sunroof, Qi wireless charging pad, head-up display, leather trim and a space-saver spare.
A 7.0-inch screen on the dash runs the media system, with a sat nav, Apple CarPlay and Android Auto. It all works very nicely and the generally ho-hum Infinity speakers do a solid if unspectacular job of filling the cabin with noise.
The 118i kicks off the BMW 1 Series range from $49,900, before on-road costs. From there you can step up into the warmed over 128ti from $58,900, and the range is topped by the spicy all-wheel drive M135i xDrive in Pure ($67,900) or regular guise ($72,900).
The 118i’s circa-$50K price tag is a lot for an entry-level small hatchback, but it seems BMW has become better at including standard gear in its base variants. But it’s still not what you’d call generous.
Standard equipment in the 118i includes single-zone climate control, a head-up display, LED headlights and fog lights, an 'M aerodynamics' package, leather steering wheel, sports seats, a six-speaker audio system, auto-dimming rear-view mirror, rain-sensing wipers, 'M Sport' suspension, wireless smartphone charging, a 10.25-inch digital instrument cluster, and a 10.25-inch multimedia screen with satellite navigation, digital radio and Apple CarPlay.
The only option fitted to the test car was premium paint ($1308) which brought the price-as-tested to $51,208, before on-road costs.
So there’s some good tech on the list, but there could be more premium features, you know, given it’s a premium brand, and all. Heated seats would be nice, for example.
Unsurprisingly, BMW offers a number of different options packs ranging in price from $1700 to more than $4000, depending on what you want.
Its two closest rivals are of course from the other big Germans - the Mercedes-Benz A180 (from $49,890) and Audi A3 35TFSI ($47,100) hatchbacks. The level of standard gear is relatively even across the three, although the Audi has the lead when it comes to safety (more on that below), hardly surprising given it's the newest of the three.
There’s also the question of value, especially when you compare with high-grade small hatchbacks from mainstream brands. Models like the Mazda3 X20 Astina ($43,190 BOC), or Honda Civic VTi-LX ($47,200 drive-away) could be good alternatives, or for similar money you could get into something sporty like a Hyundai i30 N Premium (from $48,000 BOC) or for a few grand more there’s the Volkswagen Golf GTI ($54,990 BOC).
The 1.6-litre turbo-petrol four-cylinder is a familiar sight in Hyundais, in this case offering up 150kW at 6000rpm and 265Nm between 1500 and 4500rpm, which is a nice wide torque curve. Power goes to the front wheels via a seven-speed dual-clutch automatic transmission.
Performance is swift rather than startling, with the Veloster's 1350kg cracking the ton in the 7.1 seconds, 0.6 seconds quicker than the manual.
The 118i is powered by a three-cylinder turbocharged petrol engine, offering up 103kW of power and 220Nm of torque. It’s the same unit found in the Mini Cooper, albeit uprated by 3kW for the BMW.
It is front-wheel drive and the engine is paired with a seven-speed dual-clutch automatic transmission.
BMW says the 118i can cover the 0-100km/h sprint in 8.5 seconds.
If you’re after a quicker 1 Series, then the 180kW i28ti or 225kW Mi35i xDrive could be a better pick.
Hyundai claims you'll get 6.9L/100km on the combined cycle. As ever, Hyundai is unusually close to real world figures, with my indicated average landing at a very respectable 8.2L/100km in a fairly urban kind of week.
According to BMW, the 118i consumes 5.9 litres of fuel per 100 kilometres. During my week of mixed driving with the hatch, I recorded a much higher average figure of 10.8L/100km. This was exacerbated by the fact I did my main test drive shortly before returning the car. It was much more efficient around town.
It has a 50-litre fuel tank and does require premium 95 RON petrol. In terms of CO2, the 118i emits 135g/km.
I was fortunate enough to have some time on my hands, so I volunteered to take the base spec Veloster to Hyundai to swap into the Turbo. And look, it's fine, but in the same way the second-to-last-Celica was fine - nothing to write home about, more show than go. Comfortable, quiet, hatchy.
And the Turbo is many of those things. Except, as in the i30, when you step up to the turbo engine it wakes up a chassis that is truly terrific.
While it rides really, really well, it also piles through corners with even more enthusiasm than a similarly powered i30 N-Line, which is no slouch.
The Veloster is lower and slightly lighter, adding to the fun. And it doesn't spend half the time hitting the bump stops like the old car.
There are almost no duds in the Hyundai range when it comes to ride and handling, but the steering is in another league compared to the outgoing model's.
It's quick and points the car where you want, the front end digging in and tracking clean and true. It's terrific fun.
But, like just about every other Hyundai, its compliance and daily drivability is super-impressive. Only bad roads upset the rear suspension but the front is largely unflappable.
Flappable is the dual-clutch transmission. It occasionally hunts around looking for a gear and I spent a lot of time pulling the paddles to get it to do the right thing.
It was particularly recalcitrant downshifting without manual intervention, no matter what drive mode I chose. It can also clunk a bit when it's confused. I reckon I'd take Richard's advice and stick with a manual.
To be honest I wasn’t particularly hopeful of an engaging driving experience with the 118i given I have been underwhelmed by the base Mercedes-Benz A-Class. But after a week with the 1 Series, I reckon it might well be the pick of the premium players in this segment.
The 118i is also a much more enjoyable car to drive than the entry-level version of the outgoing X1 SUV with which it shares a powertrain. If you don’t need the extra cargo space or the ride height of the X1, then please test drive the 118i just to see what you’d be missing if you opted for the X1.
BMW has always excelled when it comes to building punchy powertrains for driver’s cars, and that continues to be true, even for its smallest internal combustion unit.
The 103kW/220Nm turbocharged three-pot is smooth yet responsive, offering linear power and torque delivery and acceleration that will bring a smile to your face.
Obviously it’s not as quick as its sportier 1 Series siblings, but make no mistake, you can still have fun in a 118i.
There’s a little bit of lag when taking off and some hesitation from the seven-speed dual-clutch transmission during shifts, but neither are deal-breakers.
That obsession with driver engagement has paid off with the steering which is quick and direct.
The suspension is geared towards dynamism and as a result of that, and the sharp steering, you’ll be seeking out the nearest twisty section of road every time you get behind the wheel. It’s planted in corners with excellent road-holding characteristics.
Unfortunately that dynamic tune, and the low-profile tyres, means the ride is on the firmer side and a little jiggly around town, but it settles at speed.
In terms of visibility, the 118i has huge B- and C-pillars, small rear side windows and a narrow rear windscreen, so you’ll be relying on the parking sensors and camera. The 11.4m turning circle feels large for a small car, too.
The cabin is well insulated from some outside noise but coarse chip roads will make their presence felt.
This Veloster arrives with six airbags, ABS, stability and traction controls, lane keep assist, blind spot warning, rear cross traffic alert, forward collision warning and forward AEB with pedestrian detection.
Although not rated by ANCAP at the time of writing, the Turbo and Turbo Premium are likely to score a maximum five stars.
The lower grade - as with other newer Hyundais with the lower spec AEB - is probably going to drop a star.
Both rear seats score an ISOFIX and top tether anchor point.
The 1 Series range was awarded the maximum five-star rating from crash safety watchdog, ANCAP, in 2019.
The 118i comes with front and rear parking sensors, reversing camera, cruise control, low-speed auto emergency braking, forward collision warning, rear cross-traffic alert, lane departure warning, driver fatigue detection, and six airbags.
It is not fitted with a front centre airbag to help mitigate against injury between the driver and front passenger in a side collision. Only the Audi A3 has this out of the three Germans in this segment.
In this grade, the 1 Series is fitted with regular cruise control, rather than the adaptive system that moderates speed according to the speed of the vehicle ahead. It is a surprise to see the more old-school system in a BMW.
The lane keeping aid works well, smoothly centring the vehicle in the lane when required.
As always, Hyundai's solid five year/unlimited kilometre warranty is along for the ride. Slightly annoyingly, you'll need to return to your dealer every 12 months or 10,000km for scheduled service and prices are capped.
Four of the five services cost $299 with the fourth year at $375. Over the first five services, you'll average $314.
BMW continues to offer a three-year/unlimited kilometre warranty for its models, which is disappointingly a couple of years off most rivals these days.
The German giant also does things a little differently when it comes to servicing. Instead of service schedules, it has ‘condition-based servicing’, which is when the vehicle’s computer will inform you when the car needs a service.
BMW’s Service Inclusive pre-paid plan runs for five years or 80,000km for the 1 Series, and costs $1700 up front when you buy the car. That averages out to about $340 per service, which isn’t bad for a premium marque.