Vehicle manufacturer BMW has achieved a significant milestone – breaking the 100 mpg barrier with one of its vehicles.

The BMW 116d EfficientDynamics five-door Hatchback was highlighted at this year's RAC Future Car Challenge for its impressive fuel efficiency and green credentials, achieving 103 mpg on a 64-mile route from Brighton to London.

Furthermore, the model emits just 99 g/km of CO2, ensuring it is exempt from the London Congestion Charge and is also subject to zero Vehicle Excise Duty in the UK.

Paul Clarke, editor of Green-Car-Guide, commented: "Hybrids and electric cars certainly have an important future, but it shows that people shouldn’t write off the internal combustion engine yet, as its efficiency is improving all the time."

Last month, the company picked up a prestigious accolade for its commitment to low-carbon cars and fuel-saving technologies over the last 12 months, being named the 2012 GreenFleet Fleet Car Manufacturer of the Year.

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Posted by Clare Lafferty, Account Manager, The Fuelcard People.