M ORE canny crossover than fledgling off-roader, BMW's entry-level X1 teams the option of a sporty rear-drive chassis with 1 Series-influenced SUV style.

In marketing terms, there are two types of 4x4: real and faux and, unsurprisingly, BMW offers a choice of both with the X1.

But, in cases where money very much is an object, faux seems to be getting the upper hand these days, eschewing the extra bulk and thirst the seldom needed all-wheel-drive entails.

Stripped back to the rear-wheel drive of the 1 Series on which it's based, the sDrive X1 18d SE is arguably the preferable option, promising a beguiling combination of on-road fun and frugality behind its rugged presence.

There are three third-generation 2.0-litre common-rail turbodiesel engines to choose from in the all-diesel X1 range and although the motor under the bonnet of the model we're testing here is the least powerful, it nevertheless develops a punchy 143bhp, supported by a whopping 236 lb ft of torque, so by no means feels like the poor relation.

Performance is brisk with the sprint from rest to 62mph dispatched in 9.6s on the way to a top speed of 124mph – usefully that bit quicker than when the model is specified with four-wheel drive (10.1s and 121mph).

A sweet-shifting six-speed manual gearbox complements the smoothness and refinement of the engine. Unlike most two-wheel drive versions of 4x4s, it's the X1's rear wheels that are driven, which will be music to the ears of drivers who appreciate the effort BMW puts into exploiting the advantages of the layout.

Most noticeable from the start is direct, accurate steering unsullied by torque effects.

Being closer to the ground than most compact SUVs (you don't have to climb up into the seats), the X1's comparatively low centre of gravity reaps dynamic rewards on twisty roads – namely crisp turn-in, plenty of grip and minimal body roll.

Cornering attitude is easily adjustable with the throttle and the ride, although firm, is far from uncomfortable.

The bad news is the rear drive X1 is utterly hopeless off-road. Then again, the heavier and more cumbersome 4x4 version is hardly a master of the mud-plugging art.

The X1, quite clearly, isn't just a Russian doll-style scaling down from the X5 and X3 – and nor would it work as such.

It's probably better to think of it as a 1 Series with bolted on SUV attitude, especially as tested in entry-level, rear-wheel drive guise.

Even if you order it as a 4x4, the butch, off-roading image is a bluff; the X1 simply doesn't have the ground clearance or wheel travel to hack it in the rough stuff.

What it does have, especially in rear-drive form, is an unambiguously road-biased chassis of some talent, even by road-car standards, and an excellent range of diesel engines that rewards the driver without the feeling of guilt that can attach itself to the ownership of larger SUVs.

Compact, economical and good to drive, the X1 might not be the sexiest SUV in its class, but it skilfully navigates the line between sensible and sporty.