BMW X1 Named Australia's Best Luxury Small SUV Two Years Running

If you're shopping for a small luxury SUV in Perth and want something that punches above its price tag, the BMW X1 deserves a serious look. It's just claimed Australia's best luxury small SUV award for the second consecutive year — and after spending time with it, it's not hard to see why.

The X1 beat out two strong finalists — the Cupra Formentor and Volvo XC40 — both genuinely good cars in their own right. Winning once is an achievement. Winning back-to-back in a segment this competitive says something real about the X1's calibre.

What Makes It Work for WA Drivers

Perthites tend to cover serious kilometres. Whether you're commuting on the Kwinana Freeway, running weekend trips down to Margaret River, or heading further afield toward Esperance or Broome, you need a car that's capable, comfortable, and efficient enough to keep fuel costs from blowing out — and WA bowser prices aren't getting any friendlier.

The X1 lines up well here. For 2026, entry-level grades now include mild-hybrid technology, which helps fuel economy without adding complexity. There's also a new plug-in hybrid xDrive25e variant in the lineup, giving buyers a genuine low-running-cost option if you can charge at home. On the other end, the M35i brings a turbocharged 2.0-litre four-cylinder for drivers who want something with real grunt.

The handling has always been a BMW strength, and the X1 carries that through without making you feel like you're in a sports car. It's composed on the highway, agile enough for city driving, and refined in a way that makes longer regional WA runs genuinely comfortable rather than draining.

The Interior and Tech Hold Up

Step inside and you won't feel like you've compromised by going small. The cabin is well-appointed and modern without being fussy. BMW's latest tech sits at the centre of the experience — the kind of setup that doesn't require a manual to figure out after the first week of ownership.

If you're coming from a larger BMW, you won't feel like you've downgraded. And if this is your first time in the brand, the level of fit and finish is going to impress. That's a tricky balance to strike in a relatively compact package at this price point, and BMW has managed it.

The iX1 — the fully electric sibling — has also won best small electric SUV for the second straight year, so whichever direction you're heading on the EV spectrum, BMW has the X1 platform covered.

Should You Consider One?

For WA buyers weighing up the luxury small SUV segment, the X1 is a logical place to anchor your comparisons. It's not the cheapest option, but it earns its money. With the 2026 update bringing more powertrain choice — including that PHEV for buyers keen to cut fuel spend — the range is broader and more accessible than it's ever been.

If you're registered in WA and factoring in the total cost of ownership, the mild-hybrid efficiency gains on the entry-level grade are worth paying attention to. Less fuel burned across 15,000-plus kilometres a year adds up, especially when WA registration costs and insurance are already part of your budget equation.

Bottom line: the BMW X1 is the benchmark in this segment right now. Worth a test drive before you commit to anything else.