BMW has started testing the soon-to-be-launched 1-series hatchback in India.

The 1-series is the smallest and most affordable BMW currently, and will be positioned to take on the likes of the Mercedes-Benz A-class in India. The current-generation model (Codename F20) has been on sale in international markets since September 2011.

At 4.2 metres long, the 1-series is almost as long as the Mercedes A-class. Expect cabin quality to be on the lines of the X3 and the 3-series.

Internationally, BMW sells the 1-series with the 1.6-litre petrol and the 2.0-litre diesel engine options. However, the Indian variants might share engines with the X1 in the interest of costs. This means a 2.0-litre, 181bhp diesel and a 150bhp, 2.0-litre petrol, with the distant possibility of a hot, 168bhp, direct-injection petrol option.

The car would be locally produced at the BMW plant in Chennai, so expect prices to be in the range of around Rs 20-25 lakh. An early September launch is expected.