SECTOR Compact Executive  PRICE €52,300–€55,200  FUEL 5.9l/100km  CO2 139g/km

It must be difficult for car manufacturers, attempting to cater for ever-changing global demand as it’s steered by emissions standards and differing taxation policies. There’s no single solution, and the ActiveHybrid 3 is an indication of that problem.

Like the larger 5 and 7 Series hybrids, this uses a six cylinder, twin turbocharged petrol engine from the 335i, paired with an electric motor located in the gearbox housing. There’s very much a market for this drivetrain, but it’s predominantly found in Japan and North America where air quality standards make diesels a hard sell.

In CO2-taxed Europe, this is a real niche model. None of BMW’s closest competitors, including well-established hybrid manufacturer Lexus, offer a compact executive car with a hybrid drivetrain. Citroën’s DS5, which is pitching for a slice of the premium market, is the closest in concept with the Hybrid4 but even this is based on a diesel engine.

The ActiveHybrid range’s biggest problem is BMW’s own engines ­– brilliant, low-carbon, high performance diesels which have made the carmaker a big player in the corporate market. By comparison, the hybrids are more expensive, less efficient and higher in CO2 than even the most powerful diesel, so sales expectations are very modest.

Most of the early adopters for the ActiveHybrid 3 are likely to be technology lovers, and they will adore the clever powertrain used here. Everything works seamlessly, switching almost unnoticeably between petrol and electric power around town and with the useful ability to ‘coast’ on electric power at speeds of up to 160kph, decoupling and deactivating the petrol engine, which will add to motorway efficiency.Using a little restraint and the Eco Pro driving mode, this powerful saloon car consumes around 6.9l/100km, which many buyers would’ve been happy to get from a diesel 3 Series not long ago.

The electric motor also provides a power boost under heavy acceleration, so this offers incredible straight line performance. Its combined 340hp is delivered smoothly and effortlessly through the eight-speed gearbox, and 100km/h arrives in 5.3 seconds from rest on the way to a limited 25km/h top speed. Instead of being a stereotypical low performance, low-CO2 hybrid, this is the second fastest 3 Series behind the M3.

But what really impresses is the lack of sacrifices. The handling isn’t blunted by its extra weight, there’s no noisy CVT gearbox, no loss of boot space and no shortage of choices when ordering. BMW isn’t building a Touring version, but the ActiveHybrid 3 is available in most of the same trim levels as the saloon – SE, Modern, Luxury and M Sport – each costing €6,500 more than the equivalent 335i. That’s a price difference which could be offset by greater efficiency and, in some markets, lower tax.

This isn’t a car that’ll change the face of 3 Series sales in Europe, appealing more to head than heart. Technology fans will enjoy its clever engineering, and corporate buyers in the market for a powerful six-cylinder 3 Series will find this a more affordable car to live with as fuel prices continue to rise. With rivals only offering larger models as hybrids, it's also a unique option.

Without the legislation and taxation to encourage petrol-electric hybrids, this will remain very much a niche part of the 3 Series range. ActiveHybrid 3 is a brilliant piece of engineering, but without a smaller engine or diesel option it won’t make sense for the majority of corporate buyers.

Verdict

There’s no questioning the quality of engineering found in the ActiveHybrid 3, but the figures don’t add up against BMW’s cheaper, more tax-efficient diesel models.