It’s been a busy 2024 for BMW so far, but there’s more to come later this year. Codenamed “F74,” the second-generation 2 Series Gran Coupe is set to break cover this fall. Meanwhile, a camouflaged prototype has been caught undergoing final testing at the Nürburgring. It had slightly less disguise than what we’ve seen in the past. Better yet, it was an M Performance version.

Losing the letter “i” from its name, the new M235 reveals its new grille design with horizontal slats. As expected, the kidneys take after those of the 2025 BMW M135, the equivalent hot hatchback. Consequently, to the dismay of purists, there will be an M badge on the grille. Elsewhere, the compact sedan is also getting the sportier-looking side mirror caps that were once exclusive to actual M cars.

You can’t see it in this new spy shot, but the Audi S3 Sedan rival is also getting a quad exhaust system. Underneath the hood, there will be yet another M badge since the “world’s most powerful letter” will adorn the engine cover. We’ve seen it on the X1 M35i, X2 M35i, and the M135, so logic tells us it’s coming to the M235 as well.

The car’s design isn’t much of a mystery. We all know it’s essentially going to be an M135 with a trunk lid. Recently leaked patent images showed the design of the new 2 Series Gran Coupe, leaving nothing to the imagination. Although BMW will advertise this car as a next-generation model, it’ll basically be a heavy facelift of the outgoing “F44.”

That said, expect major changes inside after adopting the iDrive 9 with minimal switchgear. Prepare to say goodbye to the rotary knob. It’s already gone from the 1 Series, X1, X2, and the 2 Series Active Tourer. However, the new X3 comes with the same infotainment system yet it retains the physical dial. For greater legroom, you’ll have to move to China where BMW will sell a long-wheelbase “F78” from 2025.

Engine lineup and technology will closely follow the 1 Series, so no plug-in hybrid or electric versions. The spicy M235 should be available from day one with a turbocharged 2.0-liter gasoline unit. Judging by mechanically related models, the four-cylinder “B48” is likely to be detuned in Europe. The most recent compact M Performance cars have 296 hp on the Old Continent but 312 hp elsewhere. Why? Blame the stricter emissions regulations applied in the EU.

After its debut in the coming months, the new 2 Series Gran Coupe will enter production in November, so deliveries should start by the year’s end or early 2025.