How much evolution can one model stand? In the case of BMW’s M3 the answer seems to be: as much as is necessary to keep beating the Mercedes-Benz 190s in German touring car races and other competitive events.

The latest version of the M3, the Sport Evolution has a bored-out engine, larger wheels and tyres, higher overall hearing, and some minor bodywork and internal changes. It costs £34,500. This is £6,300 over the price of an ‘ordinary’ M3 (which is itself pretty expensive for a left-hand-drive car with a four-cylinder engine). Part of the justification for this is that you are paying for a limited-edition model: only 500 of these Evolution models will be made and the UK allocation is exactly 10% of the total.

An increase in capacity from 2,302 to 2,467cc – achieved by increasing both bore and stroke – has lifted the power peak from 215bhp at 6,750rpm to 238 at 7,000, while torque has risen from 179lbs/ft at 4,600rpm to 177lbs/ft at 4,750rpm. Other engine changes have been in detail only: a lower (10.2:1) compression ratio, and reprogrammed injection and ignition (a Bosch DME system).

The lap of Millbrook we recorded at an average of 147.6mph suggests that BMW’s claim of 154 is achievable on the straight and level, while 0-60mph in 6.2sec is about a tenth of a second off the suggested 0-100kph time of 6.5sec. This is substantially better than the standard M3, which is quick for a normally aspirated car of its engine capacity: 138.3mph and 0-60mph in 7.0sec, by 100mph the Evolution’s advantage has grown to 1.4sec.

Performance in fourth and top gears has lost its edge more than we’d have expected: it’s partly due to the higher overall gearing (22.2mph/1,000rpm instead of 21.3), which simply means that to make rapid program you have to stir the lever around a bit more: but this is after all a racy sort of car, so that must be half of the object of buying it, and anyway the change quality is excellent.

You can sense the extra power from behind the wheel, though the difference is not huge. The quality of the engine has also changed little. It has an appealingly violent quality to it, rather thrashy in the noise it makes up the top end, but remarkably smooth all the way from tick over to the 7,300rpm red line. Even so, you can’t help regretting that the ’small six’ – one of the most pleasant road car engines currently available – apparently cannot be persuaded to accept anything like M3 horsepower without hurling its crankshaft though the casing.

Few road cars handle as well as the M3: in particular, we can think of nothing which beats the purity of response of its assisted rack and pinion steering. The springing and damping are near perfect, and the car’s behavior is near to impeccable in the dry: a touch of power oversteer available in tight bends, but mild, stable understeer in other circumstances. In fact, it’s almost neutral, and the combination of braking ability, grip and traction often gives the potential to out perform considerably more powerful cars in real world conditions.

The only warning note we would sound in relation to the M3 Evolution is the the 225/45 ZR 16 Michelins – excellent though they are on dry surfaces – are less satisfactory when it rains. We’ve tried them before, as optional fittings on a standard M3 (normal wear is 205/55 ZR 15s) and found them to be excessively prone to aquaplaning; the rain also highlights the relatively short wheelbase of the 3-series, especially in faster curves.

In the press blurb, BMW rabbits on about how the new adjustable spoilers provide a “further improvement in roadholding and driving safety”. But of course, not many drivers will take the time out to stop, unpack a screwdriver, and alter the angles of incidence of the front and rear aerofoils when they switch from motor way to country road. The boot wing is rather exaggerated, though it seems quite tame compared with the excresense on Mercedes-Benz’s 190 Evolution.

The covers of the steering wheel and gear lever knob have been turned inside out: while suede is the ideal material if you happen to be wearing racing gloves, it’s not so good for base hands, and the outer source of the cow would be preferable inside the road car.

When you buy a 3-series BMW is it possible to specify extended seat runners to give drivers of above average height enough legroom – it’s about time BMW fitted the extended ones to all 3-series models. No one is fooled by the illusion it gives of almost adequate rear legroom. It’s a pity, because otherwise the front seats would be very comfortable, and the driving position perfect: the new seats (complete with slots for a full racing harness) are very comfortable and supportive.

Now that BMW has proved it can sell left-hand-drive Z1’s to British buyers for nearly £37,000, any comments about value for money (in reference to almost anything) seems redundant, but it seems to us that, apart from the hotter engine, the changes to the M3 in this version are more for the benefit of the BMW’s racing team rather than the buyer. However, the standard M3 is such a great car that the extra performance of this Evolution model – welcome though it is – hardly seems worth a 22% price hike.

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An M3? Come on, guys, that’s ancient history, isn’t it? Well, in some ways you’d be correct in saying that about BMW’s little sedan race. But when we started testing tuner M3s – cars supposedly capable of outperforming that factory offering – we discovered something interesting. Mechanically, the tuner cars were no improvement over the stock M3; in fact, not only did they prove less drivable, but they couldn’t match the standard Bavarian’s performance at the track, either. Which made us think the M3 deserves a place in our rapidly growing “Track Test” data base. The M3, old news or not, is so well balanced that it is a benchmark by which other performance cars must be measured.

When BMW set out to compete in the international touring car championships of 1987, they needed a special car. The rules for Group A racers required that manufacturers build within any given 12 month period 5000 cars essentially similar to the racers. To gain a bit of “unfair advantage,” Munich started with the body of their 3-series and created a special production model incorporating a good number of tweaks and subtle modifications useful for racing. In the time-honoured tradition that has prompted carmakers to produce such customer cars as the Plymouth Roadrunner Super Bird, Ford Mustang Boss 429, and Porsche Carrera RS, BMW created a roadgoing “funny car” to allow putting the same tweaks on their racers. The result is the M3, a race car for the road.

The exterior is extensively modified from stock. The fender flares are tastefully done, and look designed in, not just added on afterward to clear wider tires (the rules allow up to 10.0 inch wheels in touring car racing, with no body changes allowed). The entire rear window area has been altered for better aerodynamics on the race track. The bottom edge of the rear glass has been moved back several inches, giving it a steep rake. A composite cap fairs in the glass to the existing body. The trunk lid has been raised by another composite cap which carries the spoiler. Fit and finish are excellent.

In contrast to the rest of the 3-series BMWs sold in the US, which use the inline six, the M3 uses BMW’s venerable iron block four. The iron four has been around for more than two decades. The old block is fitted with a double overhead cam 16-valve head which benefits from the many years BMW has spent in tuning and racing this engine. This is a natural choice for racing, as the newer aluminum engines from Munich are perfectly good for civilian use but were never intended to put out as much as the racers need to be competitive, and are not as structurally rigid. As evidence of the four’s ultimate ability, recall that this humble block was also the basis for BMW’s successful Formula One effort of the early eighties. At nearly 200 horsepower, the M3 engine is probably at the very limit of what a 2.3 litre normally aspirated engine can develop for street use. The tuner cars we tested proved this point emphatically.

While the outside changes are obvious, the changes under the skin are even more extensive. The front suspension pickup points have been subtly altered from those of the stock 3-series. The front hub carriers are also different, for more caster, lending greater stability and better road feel. The ratio of the power steering has been quickened. Lower A-arms are of aluminum rather than steel. Springs, shocks, and bushing have been altered from stock, with rising-rate springs added at the rear. The M3 carries the bigger brakes of BMW’s 635 and 7-series. Power reaches the ground through a 25percent limited slip differential.

Inside, the M3 has excellent, multi-adjustable, highly supportive leather seats with high, firm side bolsters. Along with the Corvette and Porsche 911, these are among the best sports car seats anywhere. The steering wheel is set high, at a steep angle. It offers good grip, with perfectly placed thumb hooks. The instrument panel and controls have that characteristic no-nonsense BMW look and feel that says “this is a driver’s machine.” Instruments, controls, and pedals are all ideally placed. The dead pedal and the placement of gas and brake for heel-and-toe downshifting tell you that this is a car with sporting intentions. The heating/AC controls and the trip computer are clearly, logically labelled. The large glass areas allow good vision to all sides. Rear seating and headroom are adequate. The carpeting and trim pieces fit perfectly.

On the drag strip, the M3 launches best at 4300 to 4500rpm. We measured 0-60mph in 7.38 seconds, and the quarter mile in 15.65 seconds at 90.8 mph. The M3 has very short gearing, as one would expect in a race car. Second gear only reaches to 53mph. It’s tempting to say that car would be quicker with taller gearing, but the shifter feels so good that there probably isn’t much time lost in the extra shift before 60.

We measured a top speed of 139mph (the factory claims 142; close enough). Revs at top speed were 6900rpm, just 100 shy of redline. At that speed, the M3 felt securely planted, no doubt in part due to its racing modifications. The steering conveys a solid, well connected feel at speed. The M3 also retains that typical BMW ability to absorb big bumps while still delivering sharp handling characteristics. On the skidpad, the M3 exhibits very benign handling. We played around with tire pressures. Reducing pressure at the rear (to 38 psi cold all around) reduced understeer and made the car easier to steer with the throttle (it tucked in a little more on lift off) but didn’t affect ultimate cornering levels. The car could be kept on the line with the steering wheel held steady, and steered with just the gas pedal. At the limit, the car understeers gently. We measured average lateral acceleration at 0.81g. This car would do considerably better on the skidpad with more aggressive tires; the Uniroyal Ralleye is not today’s hot set-up. The narrow general-purpose tires may also account for the good but not stellar braking distances; this sort of car with ABS is capable of shorter stops. A sticky 255/50 tire would fit nicely, requiring no changes to the car.

The engine feels rough below 1500 or even 2000rpm, but smooths out above that, although it never approaches the levels of smoothness of BMW’s other engines. It has a growly sound and character, in the best tradition of four cylinder sports cars of a bygone era.

On the road, the car gives a false impression of sluggishness if driven conservatively. If the revs are kept too low, the four cylinder engine and deficit in low-end torque make themselves felt. If never taken out on an empty, twisty road, many drivers would overlook this car’s outstanding sporting character. The engine doesn’t have that strong bottom-end character of an American muscle car; it’s tuned for top end performance. When driven as intended, on a twisting road with the engine never dropping below 4000rpm, everything suddenly falls into place. The engine rockets the car from corner to corner, and the hard pedal of the ABS-assisted brakes lets the driver go into turns deep than he had thought possible.

Many cars feel fine when driven moderately hard, but lose their composure when going above eight or nine-tenths; not the M3. The feeling is one of being in total control even at ten-tenths. In short, the BMW M3 feels like a racing sedan. Which is exactly what it is.

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