Over the past few years, the compact sport utility vehicle market has expanded significantly. The introduction of models like the Infiniti EX35 and VW Tiguan have created a demand for a car that blurs the line between a sedan and a truck.

BMW’s newly launched X1 represents an entry level, premium-grade Sports Activity Vehicle that will become an option to many people out there who haven’t considered the brand before.

In international markets, over 6,000 variants of the X1 have sold already. Unfortunately for North Americans, we will have to patiently wait until 2011 to get behind the wheel of one.

The X1 starts at just 29,950 EUR in Germany (about $40,000 CAD). This low starting price will surely have an impact on near premium brands like Lexus and Infiniti.

Last October, I had the opportunity to drive an X1 xDrive20d in Germany. Let me take a second to explain that nomenclature:
The X1 is available in two types of drive trains: xDrive – All Wheel Drive and sDrive – Rear Wheel Drive

The “20d” signifies the powerplant, in this case, a 2.0L, four-cylinder Turbo Diesel that produces 174HP and a healthy 258 ft-lb of Torque.

The car, despite being a “1″ was very roomy because it is based on the 3 series sedan. The X1’s ride height seemed to be somewhere between a 3 series touring and an X3.

The car was very responsive with all that torque and very smooth for a four-cylinder turbo. It handled very close to a 3 series sedan, which, by the way, is the benchmark for any premium segment vehicle.

When it finally arrives here in Canada in 2011, we are not sure exactly which models/engines we’ll receive, but it’s likely we’ll get the most powerful gasoline engine (xDrive 28i) first, with a diesel to follow. It is also rumoured that we will be receiving the rear wheel drive models as well!