THIS is the BMW 118i. It has a double kidney front grille and it costs $30,000 less than the 320i, which is the next most affordable BMW around. And did I mention that it's a BMW?

Naturally, some deliberate concessions have been made to differentiate the base 1-series from the rest of the BMWs. As with the 130i featured earlier, the 118i does not have a backside and looks a bit 'unusual'. Worse still, the car's five-door hatchback arrangement makes it look even weirder. Under the bonnet, the inline-4 2-litre makes just 136bhp, 14 horses less than when the same engine is used to move the 320i.

Of course, all these minor deprivations don't change the important reality that it is a proper BMW. The identity goes further than the badge too because the 118i definitely feels like a true member of the marque.

Even though the cabin is lean on luxuries - there is no digital climate control or big LCD navigation screen - the no-nonsense environment is still pure BMW. Switchgears such as the steering wheel, instrument dials and gear lever are shared with the 118i's bigger siblings and the driving position is practically perfect (after cranking the manual levers for the steering and seat) so anybody with a current-generation BMW will be immediately at home.

It's on the move that the 118i reveals its Bavarian roots, along with some nice surprises.

The little BMW conducts itself with the authority and confidence of a 5-series. Doing without the M Sport suspension, which is standard on the 6-cylinder 1-series models, the ride is more pliant without making any discernible trade-offs in terms of handling capabilities. If nothing else, the combination of the slightly narrower tyres and milder suspension setting makes the car feel more natural and involving to drive than the 130i.

It's also surprising that in this milder state of tune, the 2-litre is smoother and cleaner revving than when it makes 150bhp in the 320i. It also sounds more pleasant than in the bigger-bodied car.

Expectedly, the smaller stable of horses has a definite effect on absolute pace. Even though the six-speed automatic gearbox does a good job maximising the 118i's performance, the cheaper Volkswagen Golf GT, with its twin-charged 1.4- litre engine, will leave the BMW in the dust.

It's unlikely that existing BMW owners will be tempted to move down the rung for the 118i, but for the outsiders, this can be a good way to get in with the crowd. Ironically, the 118i's unusual looks stand out in the field of better-dressed BMWs.

BMW 118i
Price: $116,800 with COE
Engine: 1,995cc, 16-valve, inline-4
Transmission: Six-speed automatic with manual select
Power: 136bhp at 5,750rpm
Torque: 180Nm at 3,250rpm
0-100kmh: 10.1 seconds
Top speed: 204kmh
Fuel consumption: 7.6 litres/100km (combined)
Agent: Performance Motors Limited

This article was first published in The Straits Times on May 31, 2008.