BMW's most fuel-efficient production car of modern times has set a new benchmark courtesy of advanced engineering. The BMW 118d now records a staggering 62.8mpg on the combined cycle and CO2 emissions of 119g/km - putting it into the Band B category for vehicle excise duty.

The BMW 118d now costs just £35 a year to tax.

The 143hp 2.0 litre-engined 118d employs technologies such as brake energy regeneration, auto start-stop, electric power steering and low rolling resistance tyres to help cut fuel bills and emissions. An optimum gearshift change indicator is included to encourage economical motoring.