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A new BMW 320d has just been announced, which will average 68.9mpg when it goes on sale in the UK in January 2010. Performance from the 2-litre diesel will be strong too – accelerating the saloon from 0-62mph in 8.2 seconds and giving it a potential 137mph top speed.

Emissions of just 109g/km of carbon dioxide will mean a tax bill of £35 annually and make the 3-Series the first sub 110g/km premium car.

The saloon benefits from BMW's 'EfficientDynamics' suite of technologies, including stop and start, brake energy regeneration, long gearing, lowered suspension, aerodynamic alloy wheels and Michelin low rolling resistance tyres.

It will qualify for a 13 per cent benefit-in-kind rating, making it attractive to fleet and business customers.

The BMW 320 EfficientDynamics saloon will be unveiled at the Frankfurt Motor Show in September and will be specified similarly to a 320d SE, with two-zone air-conditioning, rear parking sensors and a multi-function steering wheel.

Audi's cleanest A4 2.0 TDIe currently emits 120g/km, while the Mercedes C220 CDI BlueEfficiency emits 127g/km. The all-new Toyota Prius manages 72.4mpg on the combined cycle and emits 89g/km of carbon dioxide – making it part of the 70mpg club.

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