Jump LinksInfotainment: Wait For ItPerformance ImpressionsRide and HandlingFuel Economy InfoBMW has a confusing conundrum in its lineup. If you walk into a dealership to buy a 2 Series, it's possible to leave with two completely different cars. The 2 Series Coupe is a rear-drive two-door that serves as the basis for the hardcore M2, while the 2026 BMW 2 Series Gran Coupe (despite having the word "coupe" in its name) is a subcompact sedan positioned below the 3 Series, sharing a platform with the X1 and several Mini products. So, does BMW's most affordable model feel more M or Mini?The 2 Series Gran Coupe is a fairly recent entry to the BMW stable, being first introduced by the German automaker in 2020. Last year (2025 model year) marked the beginning of the second generation, known internally as the F74. In our brief first drive of the 2025 model, we noted that BMW made huge improvements to the handling and performance, and cleaned up the styling. To find out if BMW's other changes have gone over as well, CarBuzz spent a week with a 2026 model in the performance M235 xDrive trim. We learned that while BMW fixed some of the 2's problems, it may have created others.2026 BMW M235 front 3/4 Exterior Design: Much Sharper We didn't hold back our punches when criticizing the original design of the first-generation 2 Series Gran Coupe; we called it the Gran Corolla. It looked plain at the front, frankly unfinished at the back, and unworthy of the Gran Coupe name from the side. This second attempt is significantly more stylish. The wheelbase remains the same, but overall length has increased by 0.7 inches with a one-inch height increase. That height increase helped BMW get closer to the coupe-like roofline it claimed to be aiming for originally, but we still think the 2 Series looks more like a regular sedan than a "four-door coupe."Thinner headlights give the car a sharper appearance, and for once, BMW didn't make the Kidney grille larger (though it can be illuminated optionally). All trims now get an M Sport exterior package with darker accents, and a $900 M Sport Plus package brings blue M Sport brakes plus some interior enhancements.2025 BMW 2 Series Gran Coupe front staticAlpine White is the only no-cost color, but if you are willing to spend $650, there are some fun hues available for the 228: Black Sapphire Metallic, Portimao Blue Metallic, Brooklyn Grey Metallic, Skyscraper Grey Metallic, Thundernight Metallic (dark purple), and Vegas Red Metallic. Storm Bay and Tanzanite Blue II Metallic are also available for $1,200, and BMW offers frozen (matte) versions of Pure Grey and Portimao Blue II for $2,350. Upgrading to the M235 unlocks more BMW Individual hues, which cost $3,000: British Racing Green, Pyrite Brown II Metallic, Wildberry Metallic, Borusan Turkish Blue, and Dakar Yellow II. This is an incredibly fun palette, some of which have historical relevance in the BMW lineup.18-inch Y-spoke bi-color wheels come standard on the 228, and they look pretty good for a base wheel. Buyers can even opt for summer, all-season, or performance ($600) tires, and BMW will equip the 2 Series Gran Coupe with a set of Michelin Pilot Sport Cup 2s, which is extremely aggressive for this type of car. The 228 can also ride on 19-inch Y-spoke wheels. Buyers get more wheel choices on the M235, including our tester's 19-inch forged multi-spoke Orbit Grey 1085M wheels ($1,600-$2,550 with the M Performance Package and M Technology Package) and 19-inch M multi-spoke bi-color 977M wheels ($600-$1,200). Interior & On-Board Technology: Breaking What Wasn't Broken While BMW spent a lot of time fixing the 2's exterior, the "improvements" to the interior actually feel like more of a downgrade. The outgoing Sensatec fake leather is replaced by a new Veganza material in one of four colors that feels better than before, but real cow hide has been taken off the menu completely. BMW does offer an M Alcántara option if you want something that doesn't feel like leather.The base seats look pretty basic, but the optional performance seats in the $2,550 M Performance Package are pretty sporty and decently comfortable. We were unimpressed with the rest of the cabin, which has been mostly stripped of its buttons, including the climate controls that used to live on the dashboard. Those now exist only on the touchscreen. The 2 Series also has the same annoying air vents as the 5 Series, which are adjusted with small controllers that are hard to see while driving. What was wrong with a conventional air vent?2026 BMW M235 dashDespite being BMW's least expensive car, the 2 Series Gran Coupe comes decently equipped with heated sports power seats, comfort keyless entry, auto dimming mirrors, wireless charging, a Harmon/Kardon audio system, navigation, front collision mitigation, and lane keeping. Optional equipment includes: Driving Assistance Plus Package (distance control, steering and lane control) Driving Assistance Professional Package (Adaptive cruise control, side collision protection, traffic jam assist) M Sport Package (M steering wheel with paddles, M illuminated trim) M Sport Professional Package (M sport seats, red brake calipers, rear spoiler, extended Shadowline trim) Premium Package (remote start, black roof, panoramic moonroof) Technology Package (Parking Assistant Plus, head-up display, Live Cockpit Professional, surround view cameras) Infotainment: Wait For It 2026 BMW M235 infotainmentBMW replaced the outgoing 8.8-inch touchscreen with a larger 10.7-inch one, which is connected to a 10.7-inch digital gauge cluster. Unfortunately, bigger does not always mean better, as this new infotainment system repeatedly took several seconds (often nearly one minute) to load our user profile and boot up Apple CarPlay. We could make it out of the neighborhood before the car started playing a podcast or giving access to heated seats, which is frustrating given there is no other way to access some of these functions without the screen.This issue was similar to one we experienced in the Mini Cooper Convertible, which has similar software. BMW Operating System 9 was fine once it was up and running, but it clearly needs more processing power. On the plus side, the 12-speaker Harmon/Kardon audio system is wonderful as a standard sound setup, and the available driver assists work well without being too intrusive. Performance: Fix The Fun, Break The Ride Every 2 Series Gran Coupe is powered by BMW's B48 four-cylinder engine with TwinPower turbo technology, now sending power to the wheels through a seven-speed dual-clutch transmission instead of the outgoing model's eight-speed torque converter automatic. The base 228 sends 241 horsepower and 295 lb-ft to the front wheels only, while the 228 xDrive model sends drive to all four wheels.Jared Rosenholtz/CarBuzz/ValnetWe tested the M235 xDrive, which boosts the output significantly to 312 hp thanks to an optimized oil supply, new bearing covers, and a more robust crankshaft and injection system. Torque remains the same, but the peak is available higher in the rev range. This model also gets larger brake discs with four-piston calipers. Performance Impressions Power in the 228 increases from 228 to 241 hp, while the M235 hp model jumps from 301 to 312 hp. Torque was decreased in the M Performance model to accommodate the new transmission. BMW's switch from a torque converter automatic to a dual-clutch enables some rapid launches off the line2026 BMW M23521In our First Drive of the 2025 M235, it blew away BMW's estimated zero-to-60 mph time, taking just 4.31 seconds to do that sprint. This 2026 M235 couldn't quite match that time, even in Sport Plus mode, but it still managed a rapid 4.52-second run, though it felt incredibly bouncy as it took off. That's quicker than the last Z4 Handschalter (4.55 seconds) we tested, despite it having two more cylinders and 70 more hp. Ride and Handling Since the 2 Series Gran Coupe is a FWD-based vehicle with available AWD, don't expect it to handle like some of BMW's finest sport sedans. That being said, this second-generation model brings with it a notably more exciting driving experience. BMW says it focused heavily on delivering sharper steering, which was notably missing from the outgoing model. It also revised the strut front suspension and three-link rear suspension to improve cornering ability. It worked, but it didn't come without sacrifice. The ride in this vehicle is abysmal. We used to use the Toyota Corolla Apex as the benchmark for uncomfortable suspension tuning, but the M235 just laid down a new marker.2026 BMW M235 steering wheelWhen a friend hopped in the car to go out for dinner, he asked us if it had a flat tire. "No, it just rides like this," we responded. Even on newly-paved roads, it still feels like the car is communicating imperfections that aren't there. It's as if the tires are made of octagonal cinder blocks rather than round pieces of rubber. We love that BMW greatly improved the handling and powertrain of the 2 Series Gran Coupe, as these were major complaints we had previously, but the ride is so jittery, we would never want to buy this car. Fuel Economy Info Along with the increase in fun that came with the dual-clutch transmission, the 2 Series Gran Coupe also became more efficient. The FWD 228 model is now rated at 27/39/31 mpg (city/highway/combined), up from 24/34/28 mpg in the 2024 model year. With xDrive, those numbers drop slightly to 26/38/30 mpg, which is still excellent. The high-performance M235 xDrive still achieves 24/33/27 mpg, the same as it did when it had an eight-speed automatic transmission. Verdict & Pricing: Fixed But Not Quite 2026 BMW M235 badgeIf you want something close to the 2 Series but more comfortable, the Audi A3 is the closest option right now. It's about the same price, has standard AWD, but less power. Audi also offers sporty S3 and RS3 variants, the latter of which has no direct competition from BMW. There's also the Acura Integra, which doesn't have AWD, but starts more affordably at just $33,000, includes a hatchback, and offers a manual transmission on the A-Spec and Type S variants.During our brief drive of the updated second-generation 2 Series Gran Coupe last year, we thought BMW had righted the wrongs of its underperforming entry-level sedan. This new model is faster and more fun than ever, but at the cost of livability. Though it looks hotter and drives more enthusiastically than before, it now rides too harshly and makes annoying compromises inside. For those reasons, we'd look elsewhere for a small luxury sedan.