BMW unveils the M2, a supercar for the inner cities

The latest addition to BMW's ultra-performance range is big on speed and power but small on size.

In fact, the M2 coupé, revealed at a special event on Tuesday night, live streamed via Periscope, will only take up about the same amount of room on the highway as a Volkswagen Golf GTi when it officially goes on sale next year.

But unlike the iconic hot hatchback, the latest two-door BMW coupé won't simply hold the road, it will own it, thanks to a turbocharged six-cylinder engine that delivers 365bhp and a 0-100kph time of just 4.3 seconds when the car is specified with a paddle shift rather than manual transimssion.

That means that that it's as fast or faster in a straight line than its direct rivals -- the hottest Mercedes A Class and sportiest Audi A3.

And it will be just as impressive in the corners, thanks to a clever electronic limited slip differential digitally juggling the power between initially, the rear wheels (a four-wheel drive version is expected later), a piece of kit that until recently was solely the domain of marques like Ferrari. All of which means that the small car will be worthy of such a big responsibility -- carrying the 'M' badge.