Pricing will be announced closer to launch, BMW spokeswoman Rebecca Kiehne told Edmunds.
The five-passenger 2016 BMW X1 xDrive28i, an all-wheel-drive model, will be the only model available in the U.S. at launch. The previous X1 also was available as a rear-wheel-drive model.
Kiehne would not discuss plans for any future variants of the X1 here.
The new engine is a 228-horsepower 2.0-liter twin-turbocharged four-cylinder engine from BMW's new family of modular engines. BMW says the 2016 X1 is the most powerful entry model in the segment.
The new engine reflects a 12-hp drop compared to previous 2.0-liter turbocharged inline four-cylinder engine in the 2015 X1. U.S. buyers could also opt for a turbocharged inline six-cylinder engine that delivered 300 hp in the outgoing X1.
Kiehne noted that the new engine has the same 0-to-60-mph acceleration of 6.3 seconds as the previous X1 with a four-cylinder engine.
The new engine is linked to a new eight-speed Steptronic automatic transmission.
The EPA has not released official fuel economy numbers on the 2016 X1.
Cabin upgrades include more head- and legroom. Power seats are now standard equipment.
The second-generation X1 puts greater emphasis on connectivity. The optional 8.8-inch Control Display with touchpad controller will host BMW Online, BMW Apps, Remote Services and provide Advanced Real-Time Traffic Information.
An optional 6.5-inch screen is also available.
Other options include full-LED adaptive headlights, a head-up display and Driver Assistance Plus, which bundles a long list of safety features, including lane departure warning, a rearview camera and automatic high beams.
An M Sport package, which will be available later in the model year, features steering wheel-mounted paddle shifters, an M Sport suspension and sport seats.
Edmunds says: These minor upgrades should keep the 2016 BMW X1 competitive in the face of growing competition from both luxury and near luxury competitors.