It is in the subcompact luxury crossover class, and the first-generation X1 was based on the E90 3 Series and offered rear-wheel drive layout as standard.

The second-generation X1 marked the switch to a front-wheel-drive-based layout using the UKL2 platform shared with the BMW 2 Series Active Tourer and the Mini Countryman.

[3] Development of the vehicle started in 2006 when BMW identified the need for a smaller and more efficient model in its SUV line-up as petrol prices were increasing.

Due to the urgent need to produce the vehicle, development and pre-production time was shortened by 40 percent compared to previous X Series models.

In 2013, the E84 X1 underwent a facelift, featuring restyled exterior and interior design elements, as well as the integration of BMW EfficientDynamics on all models.