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The 1 Series was first offered to the market in 2004 as a five-door hatchback. It replaced the BMW 3 Series Compact range and is currently the smallest and most affordable vehicle (depending on the engine model) in the BMW range. Unlike its predecessor, the new vehicle is built on its own platform (E87); however, it shares many components with the E90 3 Series. Shared parts include MacPherson struts in the front of the car and a trapezoidal-link rear axle. BMW has stated that it shares over 60% of components with the current E90 BMW 3 Series.

The 1 Series is built in Regensburg and Leipzig, Germany, with the 4 cylinder petrol/gas engines coming from the Hams Hall plant in Coleshill north east of Birmingham, England.

During its first full year on the market in 2005, it became one of BMW's most successful products. 149,493 units were sold, leading to a third-place finish in total numbers sold by model. Only the 3 and 5 Series sold better.

BMW upgraded the 1 Series for 2007 and introduced a 3-door sports hatch variant (code named E81). Changes to the model were minor headlight and taillight revisions, new front/rear bumpers and minor revisions to the interior. The dashboard has been updated, and a recommended gear indicator is now present on models with manual transmissions.

New technologies include auto Start-stop system, Brake Energy Regeneration, Electric Power Steering, an electric water pump, and a host of drivetrain modifications designed for fuel economy, increased performance, and lower emissions. BMW marketing has named this combination of technologies EfficientDynamics, which will also be implemented in other BMW models.

The 1 Series is effectively the first in the world to have mild hybrid technology as standard equipment, although BMW is careful in its marketing not to label it as a hybrid vehicle, as this brings market expectation of electrically assisted drive.
 
Production 2004-present
Body style(s) 5-door hatchback (BMW E87)
3-door hatchback (BMW E81)
Engine(s) 1.6 L I4
2.0 L I4
2.0 L diesel I4
3.0 L I6
Transmission(s) 5-speed manual
6-speed manual
6-speed semi-automatic
Wheelbase 2660 mm (104.7 in)
Length 2004-06: 4227 mm (166.4 in)
2007-Present 5-Door: 4239 mm (166.9 in)
2007-Present 3-Door: 4329 mm (170.4 in)
Width 2004-06: 1751 mm (68.9 in)
2007-present: 1748 mm (68.8 in)
Height 2004-06: 1430 mm (56.3 in)
2007-present:  1421 mm (55.9 in)
Curb weight 1320–1450 kg (2904-3190 lbs)

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