BMW is introducing a new entry-level 1 Series variant with the launch of the three-door version, making the range accessible to more company car drivers.

The 114i uses a version of the 1.6-litre petrol engine found in the 116i and 118i, producing 102bhp and with CO2 emissions of 132g/km, and P11D prices from £17,125 for the three-door, with annual BIK tax bills starting at less than £600.

The five-door variants start with a P11D of £17,655 for the 114i ES, £365 higher than for a 100bhp Ford Focus 1.0 Ecoboost Zetec, and despite the Focus's impressive fuel consumption from its smaller engine, both are evenly matched on overall running costs according to our cost calculator.

BMW is continuing to expand the 1 Series range following its launch a year ago, adding a high-performance M-badged variant at the top end of the range, the 320bhp M135i, as well as a higher-power diesel 125d M Sport, using a twin-turbo 2.0-litre diesel, the latter offering CO2 emissions of 129g/km.

The new variants arrive as activity in the premium lower-medium sector is increasing with the latest varsion of the Audi A3 and A3 Sportback about to arrive in the UK, Mercedes-Benz to launch a new A-Class at the end of this year and Volvo introducing the new V40 hatchback.