BMW has announced the prices of the new 3 Series Compact. The entry level 316ti will be priced from £16,280 and the more powerful 325ti SE will cost £22,610. Both models will be on sale in the UK from August 16.

Two additional models, the 318ti and the 320td, will join the 3 Series Compact range in September. Prices will be announced later.

The new Compact is the second generation of compact hatchback saloons from BMW following the success of the original Compact launched in 1994.

BMW says it is a new car from the ground up, with a body shortened by 21 cm on the saloon, a sports suspension and a quick steering rack.

The company says the new four cylinder 316ti Compact is faster, more economical and better equipped than its predecessor.

The 316ti will be the first production car in the world to feature Valvetronic engine technology.