BMW launches fuel-efficient, spacious new Mini

London: Car maker BMW has unveiled the newest version of its iconic Mini - a quieter, longer and taller one.

The new version is more fuel-efficient too. 

The launch of the three-door hatchback took place at the Mini's production plant in Cowley, Oxford, on the 107th anniversary of the birth of the Mini's founding father Alex Issigonis. Prices will start at about 13,500 pounds (S$27,119).

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The new car will go into production this week and be on sale in the UK in spring 2014. It will be offered in three versions: basic, diesel engine, and the Mini Cooper S.

"It's a brand new car under the skin and it retains that go-kart feel to drive," said BMW board member Peter Schwarzenbauer, who was driven on to stage to the music of British band Blur in a Mini adorned with the Union Jack flag.

Describing the new Mini as 'original and still cheeky', he said it would appeal to 'young people with their finger on the pulse and older Mini fans. 

Prime Minister David Cameron has called the Mini a 'classic British icon', and BMW is pumping USD 1.2 million into the car's production in the UK.

BMW which has been manufacturing the Mini since 2001 unveiled the new model on Monday in England, saying it is more spacious and safer, and offers drivers a 'more dynamic and performance-oriented' experience.  The previous Mini generation was launched in 2007.

The world's biggest luxury carmaker looks to retain its leadership in the lucrative high-end compact car market with their latest offering.