The new 3-series is 93 millimeters, or 3 1/2 inches, longer, up to 45 kg lighter, and has more legroom for the rear seat passengers.
It’s also equipped with technology such as a color heads-up display on some models and lane departure warning system.
The car is BMW’s top seller, making up 32.6 percent of unit sales.
The company sold 399,000 of the old model last year.
Marketing chief Ian Robertson called the car BMW’s “long-term growth engine” at the unveiling Friday in the company’s home base of Munich.
It goes on sale worldwide on Feb. 11.
European prices for the various models range from 35,350 euros to 43,600 euros ($48,808 to $60,199).