Welcome to the Powerdome. It may not be quite as wild as the Mad Max movie Thunderdome but it can certainly be as entertaining.

The powerdome is what BMW calls the prominent bulge on the bonnet of its new M3, and this highlights the biggest change to the sportiest - and some say the ultimate - model of the 3 Series range. Because beneath this bulge lies potent new power in the form of an all-new engine layout.

The previous M3 used a 3.2-litre inline six-cylinder unit to drive the rear wheels. But the new fourth-generation M3 has a four-litre V8 with more power. This eight-cylinder engine is made with Formula One technology and belongs to the same 'family' as the bigger M5's five-litre V10, which is also assembled on the same production line.

On paper, the improvements are substantial. Despite the extra cylinders, BMW engineers say there is no weight deficit, thanks to extensive use of aluminium. In fact, the V8 is 15 per cent, or 15 kg, lighter than the straight-six. It is also 20 per cent more powerful but 8 per cent less thirsty.

The maximum power has gone up from 343 hp to 420horses. The acceleration from zero to 100 kmh figure is down from 5.2 seconds to 4.8 seconds.

Power delivery

But it is the way the V8 delivers this power that has to be the most attractive feature of this new engine. The power band is extremely wide - you can climb to speeds of 100kmh in second gear, while third is even more amazing with a working range of 40-140 kmh. All this is accompanied by an urgent snarl that is possibly the best supercar sound you will ever hear from an 'ordinary' high-performance car.

And yet, it has superb low-end torque. Even with the tachometer needle plunging below 2,000 rpm, it is possible to pull away in third gear without downshifting. The M3's V8 engine quietly and easily allows this without the slightest hint of vibration.

The engine response can be made more dynamic. Using the iDrive knob on the lower centre console, you can choose your preferred engine management setting, as well as your choice of suspension preference with the Electronic Damper Control, and the level of power assistance for the steering. Once this combination of personal settings has been stored, it can be immediately engaged by pressing the 'MDrive' button on the steering wheel.

With all the parameters set to achieve the most dynamic handling package possible, the M3 is transformed into a scintillating track performance. It can corner hard, yet is relatively easy to handle because of the wide power band. The gas and brake pedals are set close together for easy heel-and-toe manoeuvres. And even though you think you're driving like a demon, the M3 still has lots of power in reserve.

Only complaints

The only complaints are that the brakes could feel stronger and squeal less after some rough action, and that the fat, meaty steering wheel could be a little more communicative.

Still, the car is as sharp and crisp as a dry Martini, although maintaining the balance of the car in a fast corner depends on your right foot's delicate relationship with the throttle - keep it steady and the M3 will power in and out fairly evenly.

Yet, with its traditional 50:50 perfect weight distribution and accessible performance, the M3 can be smooth, comfortable and extremely manageable. With 85 per cent of its torque available at just 2,000 rpm, it is docile in city traffic.

But that is exactly how BMW conceived this new M3. Because of its large customer base, the car has to be forgiving, say engineers, and it should not 'overchallenge' the driver.

Twenty years after the first M3 broke cover and started what has now become an iconic line of high-performance cars, the latest model has become smoother and more refined.

Yet it is still as desirable, both for its raw power and everyday useability. For now, there is only a six-speed manual gearbox. But as with all BMW models, expect more options and more goodies to be served up once production of the car gets underway in October.

Engine: 3,999cc V8
Gearbox: 6-speed manual transmission
Max power: 420 hp @ 8,300 rpm
Max torque: 400 Nm @ 3,900 rpm
0-100 kmh: 4.8 secs
Top speed: 250 kmh (limited)
Distributor: Performance Motors. Tel: 6319-0100