The BMW will be launched with a trio of engines including the normally aspirated 3.0-liter 6-cylinder gas unit from the 328i. However the vast majority of sales are expected to go to a pair of 2.0-liter four cylinder diesel engines in 177 hp and 204 hp form as found in the 120d and 123d.
The Times' Andrew Frankel found the X1 to be a bit to close to the ground to be useful off-road. However, few people ever use these vehicles in such a way. For them, the on-road dynamics are vastly more important. Frankel found that the X1 exhibits the handling expected of its brand and it should get excellent mileage to boot. Even in 204 hp form the diesel should average about 36 mpg (U.S.). That's consistent with the 37 mpg we recorded in a 123d with the same engine last year.
[Source: The Times]