After three generations of the 3-Series, in 1998, BMW introduced the fourth generation.
It wasn’t the big visual leap between the second and the third generation, but it was an important technical evolution.

The design of the new generation E46 started in 1993 just three years after the previous generation was introduced to the market. In November 1997, BMW send the press release for their new vehicle and, in April 1998, it started the sales and deliveries.

The new design featured clear headlights cover over the lamps and a downward shaped turn-signal on the corners. The hood comprised the “BMW-kidney” grille design. To cool the engine, the bigger grilles were on the lower side of the bumper, under the foglights. The flared wheel-arches were no longer reserved for top-spec models, but for the entire range of the car.

Inside, the car featured all the important information for the driver. The instrument cluster featured the five standard dials in most of the 3-Series since the introduction of the E30: coolant temperature, speedometer, tachometer, fuel level and, on the lower part of the rev-counter, the instant fuel dial. The dashboard was no longer that much tilted toward the driver so the passenger could enjoy or adjust easier the audio controls.

The technical modifications of the E46 were important. It was the first 3-Series that offered engines with more than 100 hp even on the base engine. The E46 also marked the return of the all-wheel-drive system, which was used on the E30 but lost on the E36 generation. It also saw the introduction of a new, 2.0-liter turbodiesel engine. The car was available with 5- or 6-speed manual transmission and 4- and 5-speed automatic.