Being a 318 I am assuming that your car is an automatic? This light is normally a fault indicator lamp for the transmission, on the x-series can be for the transfer box too. It is normally associated with reduced engine performance and limited or no gear change. It will require being checked by someone in the know who has the appropriate diagnostic equipment. Having been in the transmission industry- be careful! A lot of rouges out there.
Hi, check out this site, it's for BMW owners, after logging in, the original car manual w the info you are looking for and much more will be available thru a free download of your original owners manual. If you have any trouble with the site or info, let me know. Good luck! Curt
https://www.bmwusa.com/Secured/Content/Forms/Login.aspx
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