BMW will reveal a 3-series with a CO2 output below 120g/km in the next few weeks aimed at staying one step ahead of arch rival Audi which has recently introduced a 119g/km A4, as predicted by BusinessCar last month.

The BMW 316d is expected to be powered by the same 2.0-litre diesel that’s fitted to the 318d and 320d, but is tuned for ultimate efficiency and has a power output of 116PS. The CO2 output for the car is thought to be 118g/km, putting it in the 13% benefit-in-kind tax band.

The formal launch of the car is expected at the end of June with pricing from around £23,500.