BMW is thought to be swiftly developing a rival to the Audi S4 and Mercedes-AMG C43 dubbed the M340i. It recently took a heavily disguised prototype of the sports sedan to the Nurburgring.

The new M340i will follow on from the popular M240i and will be based around the next-generation 3-Series to be unveiled in 2018 for the 2019 model year in North America. While it’ll be eclipsed by more-powerful and faster M3 models, it won’t be slow.

At this stage, it is believed that the M340i may receive the same B58 3.0-liter six-cylinder engine as the M240i. That means it should offer up at least 335 hp and 369 lb-ft of torque, making it only marginally slower than the BMW M2.

Beyond the M340i variant, the G20 3-Series will debut with a host of new technologies and of course, an overhauled design. Perhaps of most importance will be the addition of various electrified variants to the range, including one with a 1.5-liter three-cylinder petrol engine and an electric motor as well as a slightly more powerful version combining a larger electric motor with a 2.0-liter unit.

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