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One might think that after more than 40 years of continuous development, the BMW 3 Series would have the competition well and truly beat. However, the opposite is true. The all-new 3 Series has more to prove than ever.

When the seventh-generation 3 Series arrives in 2019, it will face an uphill battle to reclaim the compact luxury sedan crown it once held.

Introduced at the 1975 Frankfurt motor show, the 3 Series was, for much of the past 40 years, held up as the benchmark by which all other sport sedans were judged. Recently, the Mercedes C-Class stole that benchmark status away, becoming the best-seller in Canada in the process. As of August this year, the Benz is outselling the 3-Series sedan and the 4-Series fastback combined, according to data from GoodCarBadCar.

Not only does the new 3 Series have to win back enthusiasts who look back with rose-tinted glasses to BMW’s “Ultimate Driving Machine” years, it must also fend off old rivals from Audi and Mercedes-Benz, as well as new contenders from Jaguar, Volvo, Genesis and others.

Here is how the all-new, seventh-generation BMW 3 Series stacks up on paper against some of its key rivals.

BMW 3 Series

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BMW 3 Series.

Price range: $45,000 - $57,000 (estimate)

Engine choices: four-cylinder turbo; straight-six turbo; plug-in hybrid

Drive: Rear or all-wheel drive

It’s longer, significantly wider, more spacious and packed to the grille with high-tech features. Available for the first time in a 3er is an advanced driver-assistance package that helps with steering and acceleration/braking, similar to Tesla’s Autopilot. BMW needed to improve interior quality to keep up with rivals, and it looks like it has done just that. There’s an entirely new infotainment setup with (predictably) more screen real-estate. Enthusiasts will lament the loss of a manual gearbox option in North America, but hopefully the 3 Series has regained some of the sublime performance and handling feel that made it so great to begin with.

Mercedes-Benz C-Class

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Mercedes-Benz C-Class.Daimler AG

Price range: $44,700 - $56,600

Engine choices: four-cylinder turbo; V-6 twin-turbo

Drive: All-wheel drive

It’s easy to see why the current C-Class, launched in 2014, has become the best-seller in its class. The interior feels genuinely luxurious, with opulent touches like a large single panel of wood veneer or carbon fibre trim that flows down from the dashboard between the front seats. It doesn’t feel like a budget Benz anymore. Ride comfort has always been a strength, but this fourth-generation C-Class finally adds responsive, fun-to-drive handling to the equation. For 2019 it gets minor updates, including more horsepower, more standard equipment and advanced driver-assistance features from the larger E-Class sedan.

Audi A4

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Audi A4.AUDI AG

Price range: $41,350 - $58,000

Engine choices: four-cylinder turbo; V-6 turbo

Drive: Front or all-wheel drive

The A4 is the youngest of the three German contenders, having been first launched in 1994. The current version was introduced at the 2015 Frankfurt show. Base models come with front-wheel drive, which purists would say disqualifies it as a sports sedan, but the vast majority of Canadian buyers will pay extra for quattro all-wheel drive. Design, both inside and out, is this car’s strength. It’s crisp and unfussy. The handling lacks major excitement, but does that matter if you spend all your time stuck in traffic? The A4’s minimal, uncluttered cabin was way ahead of the curve in 2015 and the “virtual dashboard” infotainment system still feels futuristic.

Alfa Romeo Giulia

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Alfa Romeo Giulia.FCA US LLC

Price range: $47,845 - $49,845

Engine choices: four-cylinder turbo

Drive: Rear or all-wheel drive

There’s no denying the sheer desirability of the Alfa Romeo badge. The only Italian entrant in the category is a lovely looking machine. Debuting in 2015, the Giulia is based on an all-new rear-drive platform developed with input from Ferrari engineers. Long-term reliability remains a question; several major U.S. car magazines had issues with Giulias, and our top-spec Quadrifoglio tester never arrived due to a mechanical malfunction. Other practical concerns? The rear-seats are cramped. But, desirability counts for a lot in the luxury segment, and the Giulia has that in spades.

Jaguar XE

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Jaguar XE.

Price range: $43,900 - $63,900

Engine choices: four-cylinder diesel; four-cylinder turbo; V-6 supercharged

Drive: All-wheel drive

Small Jaguars always used to be subpar, especially during the years when the company languished under Ford ownership. However, the XE – unveiled in 2014 – is the product of a reborn Jaguar, now under the ownership of Indian auto maker Tata, which has given the British company’s designers and engineers free reign. The top-of-the-line, 380-horsepower XE sedan might just be the most fun-to-drive car in this whole group. It’s also one of the best-looking. Downsides? The XE lacks some of the more advanced driver-assistance tech found in German rivals.

Acura TLX

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Acura TLX.

Price range: $36,190 - $51,896

Engine choices: four-cylinder; V-6

Drive: Front or all-wheel drive

The TLX is the best-selling non-German car here, as of August, according to data from GoodCarBadCar. It’s a value proposition. The TLX’s base price undercuts rivals, but inside you can see why. There’s more plastic, and the infotainment system isn’t exactly cutting edge. The engines are old-school, non-turbocharged units that won’t have the instant, off-the-line torque we’ve become accustomed to. At this price it’s tempting, but so is a loaded Honda Accord.

Even more alternatives

From: Genesis, Volvo, Cadillac, Lexus, Infiniti, Buick, Kia and Lincoln

The compact luxury sedan segment is jammed with options these days. Above are some of our favourites and the best-sellers, but your choices don’t end there. The G70 – from Hyundai’s new luxury brand, Genesis – has impressive ride and handling chops, and starts at $42,000. The Volvo V60 is brand new, and seriously desirable thanks to its beautiful Scandinavian design. Cadillac’s fun-to-drive ATS is being discontinued, but you may be able to get a deal on one of the last models. The powerful Lexus IS handles very well indeed, while the Infiniti Q50 comes standard with all-wheel drive and a price just shy of $40,000. From America, the Buick Regal and Lincoln MKZ are not class-leaders, but do have merit. Even Kia’s Stinger probably deserves consideration, given its $39,995 price, finely balanced chassis and the fact it feels very German.

Competition for BMW’s 3 Series has never been so intense and drivers have never before been so spoiled for choice.

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