BMW Korea launched Thursday the new 1 Series hatchback, which the German luxury carmaker says will reenergize competition in the nation’s premium compact car market.

A total of six rear-wheel models, consisting of the five-door Urban Line and the more dynamic Sports Line, were unveiled for the Korean launch.

The new 1 Series is the only compact model equipped with 8-speed automatic transmission, which lowers background noise and reduces fuel consumption, according to the carmaker.

Fuel efficiency is 18.7 kilometers per liter for the Urban model and 18.5 kilometers per liter for the Sports model.

The models range from 33.9 million won ($30,681) to 46.8 million won.

It is the first time for BMW Korea to introduce cars in the 30 million won range.

“We aim to sell 200 units this year and 3,000 units next year. We have high expectations that the new 1 Series will give new breath to the premium compact car market,” said BMW Korea CEO Kim Hyo-joon.

The BMW 1 Series, launched in 2004, has sold some 1.5 million vehicles globally since its launch in 2004. In Korea, the 120d coupe and the 1M coupe have been marketed since March 2009.

With the domestic compact car market heating up with new models introduced by local carmakers recently, industry watchers say the entry of BMW cars will further fuel the competition.

“For now, there seems to be no rival for Hyundai’s Avante in the compact segment. Based on its price competitiveness, the 1 Series is expected to appeal to younger drivers,” said Kim Pil-soo, a professor at the department of automotive studies at Daelim University College.

By Lee Ji-yoon (jylee@heraldcorp.com)