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BMW's 2010 upgrades to the 3-series range will see the 318d saloon and estate dip below 121g/km for CO2, putting it in the lowest diesel company car tax band of 13%.
Available in saloon and estate body-styles, the BMW 318d retains its 143PS 2.0-litre diesel, but is now more efficient with a 62.8mpg fuel figure and faster with a 0-62mph time of 9.1 seconds. The improvements mean the saloon comes in at 119g/km and the estate at 120g/km for CO2.
The new model will arrive in the UK in March alongside several other upgrades and additions to the 3-series range.
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