BMW India has unveiled its smallest SUV yet, the BMW X1 at Auto Expo 2010. Powered by a 2.0-litre diesel engine and retailing at Rs 25 lakh (approx), the X1 will be the cheapest BMW in the country when it will go on sale in late 2010.

The SUV will be available with a 4×4 and a rear-wheel drive option and it’s the latter that will be the cheaper of the two. The compact SUV is based on the 3 series saloon and will be shipped to India as a CKD unit and will be assembled at the company’s plant in Chennai where the 3 series is built.

With a wheelbase of 2760mm and at 4454mm long the X1 opens up a new luxury segment in the compact Sports Utility Vehicle class. It will replace the BMW 320i as the cheapest luxury BMW in India and at this price tag, it will be around Rs 5lakh cheaper to the saloon.

The X1 will extend the current BMW Sports Activity Series model lineup, currently consisting of the BMW X3, BMW X5, and the BMW X6.