Spies have captured the refreshed BMW X1 compact SUV featuring the company's newest Neue Klasse design elements, with a planned debut in showrooms by 2027 where it will compete against the Mercedes-Benz GLA and Audi Q3.

The photos display a heavily disguised prototype of the upcoming X1 range-topper, likely to carry M35 or M40 badging since BMW skips an X1 M variant, and the vehicle is anticipated as a substantial update to the existing third-generation model launched in 2022.

BMW's smallest SUV should incorporate exterior styling drawn from the Neue Klasse lineup, such as the iX3 electric SUV arriving in Australian dealerships this month along with the forthcoming i3 electric sedan.

This suggests the X1, currently the brand's second-most popular model in Australia after the X3, will gain narrower kidney grilles, more seamlessly integrated headlamps and slender rear lights.

It also offers an early look at the updated X2, which shares nearly everything except its more curved roofline and should arrive around the same period.

The test vehicle reveals its flagship performance status via bigger alloy wheels that expose blue brake calipers, a signature of the present X1 M35i offered locally, plus more substantial bumpers and side skirts.

Four exhaust tips stand out at the back, underscoring its sporty character, while the images further show a dynamic posture and broader tires.

Within the cabin, the layout may draw from the iX3 and vehicles like the latest 7 Series, which adopts technology and styling cues from BMW's next-generation range even though it is not itself a Neue Klasse product.

This encompasses the new Panoramic iDrive setup, featuring a display that stretches across the entire dashboard width and runs on an upgraded processor for quicker operation.

BMW has not yet disclosed powertrain specifications for the revised X1 and X2, although both are expected to employ updated versions of the existing engine family.

The X1 M35i xDrive currently available in Australia uses a 2.0-litre turbocharged four-cylinder petrol engine, known internally as the B48, delivering 221kW and 400Nm while sending power to all wheels via a seven-speed dual-clutch gearbox.

It starts from $93,900 before on-road costs, placing it between the Audi Q3 TFSI 195kW quattro at $84,400 before on-road costs and the Mercedes-AMG GLA35 at $99,900 before on-road costs.

The updated M35i should stay the priciest option in the X1 range, which has seen recent expansion in Australia.

For 2026, both the X1 and X2 added new xDrive25e plug-in hybrid versions, marking the first time this technology has been offered locally in either model, while the X1 sDrive18i gave way as the base variant to the sDrive20i.