The BMW 316i Touring came onto the market three years after the launch of the BMW 316i Sedan. The new four-cylinder engine with four valves for each cylinder and VALVETRONIC (N42) had already been installed. VALVETRONIC was responsible for variable adjustment of the valve stroke. This was complemented by VANOS technology providing variable adjustment of the valve control times. The engine therefore represented a milestone in the history of BMW engines. From 2003, an N46 engine was installed, which took over key design attributes of the N42. The oxygen sensors (Lambda sensors) were now responsible for regulating the amount of fuel supplied even when operating at maximum load.