Mercedes has hogged quite enough of the limelight with its E-Class lately, BMW has decided. And so the new, ground-up-redesigned, seventh-generation 5 Series is here – and we’ve driven it.

Until the Teutonic next-gen M5 arrives late this year the 540i will be the quickest G30 5 Series Australia gets, the storming 4.1sec 0-100km/h all-paw V8 550i sadly off the radar of BMW Australia (for now). That also includes BMW’s xDrive all-wheel drive system, the 540i available with all-corner traction in Europe and the USA but only rear-drive for Oz.

As with all new 5 Series the BMW 540i is bigger than its predecessor – 36mm longer, 6mm wider and 2mm taller – but although the 5 Series dodges the expensive carbonfibre structural elements of its larger 7 Series sibling, it also gains a greater percentage of aluminium and hot formed high strength structural steel to slash 95kg compared to the older 535i, bringing the new, rear-drive 540i in at an relatively svelte 1595kg.

2017 BMW 540i rear

Performance aside, what actually strikes you most is the 540i’s refinement. It’s outstanding – whisper quiet on the move, the ride supple and the interior as good as they come, a truly luxurious place to sit.

Switch the 540i into Sport mode and it really perks up. Throttle, engine, gearbox, steering and suspension enter their most athletic settings, providing the 540i with pleasantly precise, engaging and entertaining traits. It satisfies in the snot department, too.

2017 BMW 540i interior

While weighty in the sportier modes the steering is satisfyingly direct. But mostly it’s the rear-wheel steering that makes the 540i feel as nimble and chuckable as a 340i. The 540i is truly engaging when pushed hard along a challenging back road.

The crowning achievement here for BMW has been to broaden the ability of the 5 Series to a point where it is now every bit as capable, if not more so, than the talented Mercedes-Benz E-Class.

2017 BMW 540i front

The new 5 Series arrives in Oz in March and it’s clear it has taken a big step forward.

4.0 OUT OF 5 STARS

Like The driver’s choice; superb refinement; smooth drivetrain

Dislike Some of its gadgets a bit naff; where’s our 550i?

Specs Engine: 2998cc inline-6, DOHC, 24v, turbo Power: 250kW @ 5500-6500rpm Torque: 450Nm @ 1380-5200rpm Weight: 1595kg 0-100km/h: 5.1sec (claimed) Price: $136,900