A luxury car commercial has been controversially banned in Australia because its promotion of drag racing was deemed 'highly offensive'.

The Advertising Standards Bureau received and upheld a complaint over the advertisement which shows an electric BWM i3 hatchback racing a 1960s Dodge Charger from a standing start.

'Promotion of street racing/ drag racing/ speeding in motor vehicles is highly offensive,' a complaint reads.

'This video promotes illegal street racing. Many Australians have had friends and family members killed or injured by partaking in these sorts of activities.'

The Advertising Standards Bureau received and upheld a complaint over the advertisement which shows an electric BWM i3 hatchback racing a 1960s Dodge Charger

The commercial begins showing the exterior of the Dodge waiting at traffic lights as the male driver grips the steering wheel.

The new BMW then rolls into shot as the female driver meets eyes with the man before the lights turn green and the cars accelerate down the road.

The electric luxury car goes from 0km/h to 60km/h in just 3.7 seconds, faster than the iconic Charger and its superior torque.

BWM Australia responded to the complains levelled against the commercial, saying the reaction is misguided and it was a comparison between the traditional muscle car and the surprising power of electric vehicles.

'As demonstrated in the attached 30 sec digital clip, there are two cars featured: the red vehicle shown in the clip is not a BMW and is an old fashioned car, depicting a scenario whereby an older vehicle is out of date, promoting the new-electric car as the way of the future,' BWM Australia said in a statement.

The electric luxury car goes from 0km/h to 60km/h in just 3.7 seconds, faster than the iconic Charger and its superior torque

'The clip demonstrates a comparison of old versus electric, to endorse the power of electricity is better than a classic car, and to discourage vehicles that pollute the environment and create emissions, not to depict a drag race.'

'They are both within their own lanes and the speed odometer is never shown to imply speeding is occurring.

BMW Australia say despite the mere seconds it takes to reach the legal limit, the cars were never speeding and did not break laws.

The ABS, however, said under its guidelines that cars cannot create unnecessary noise or smoke and that factored into its decision given the burnout performed by the Dodge Charger.

'Advertisers should ensure that advertisements…avoid explicitly or implicitly drawing attention to the acceleration or speed capabilities of a vehicle,' the bureau said in its decision.