BMW’s most fuel efficient production car of modern times has set a new benchmark courtesy of advanced engineering.

The BMW 118d now records a staggering 62.8mpg on the combined cycle and CO2 emissions of 119g/km – putting it into the Band B category for Vehicle Excise Duty. The BMW 118d now costs just £35 a year to tax.

The 143hp 2.0-litre-engined 118d employs technologies such as Brake Energy Regeneration, Auto Start-Stop, Electric Power Steering and low rolling resistance tyres to help cut fuel bills and emissions.

An optimum gearshift change indicator is included to encourage economical motoring.

These innovations are in addition to the use of variable valve technologies and high-precision direct injection engines on some 1 Series models that further aid engine performance.