Two models in the new second-generation BMW 3-series Compact range are to go on sale in the UK on August 16.

The entry 316ti will cost from £16,280 on-the-road and the more powerful 325ti SE will cost £22,610. Two additional variants, the 318ti and the 320td, will be available from from September. Prices and specification for these will be announced later.

The new Compact is an all-new car from the ground up and has a body shortened by 21cm compared with the saloon and a sports tuned suspension.

Using a four-cylinder petrol engine, it is faster, more economical and better equipped than its predecessor. Producing 116bhp and 180Nm torque (133lb-ft), it knocks one second off the 0-62mph sprint time at 10.9 seconds and achieves an increased top speed of 125mph.

It will be the first production car in the world to feature Valvetronic engine technology, developed at BMW's Hams Hall, Birmingham, factory.

Topping the Compact range, the 325ti SE is powered by a 2.5-litre straight-six producing 192bhp at 6,000rpm. Maximum torque is 245Nm (181lb-ft) at 3,500rpm.