BMW X3 2025 review

The X3 is a big deal for BMW. It was the best seller for the brand in 2023 and competes in a segment that is a fearsome as it is potentially lucrative, so it needs to get the fourth-generation ‘G45’ model just right.

Happily, it has. The new model will arrive in Australia in the first quarter of 2025 in two variants, the 20 xDrive and M50 xDrive, dropping kit-light two-wheel-drive versions and only offering all-wheel drive with lots of cutting-edge technology in the two available guises.

Not only do both variants take a sizeable step forward in styling, materials, technology and dynamics, neither has essentially increased in price which takes the fight to Audi and Mercedes-Benz, who both have ageing models to compete with.

What are the X3’s features and options for the price?

Exact specifications for Australia are still yet to be decided but equipment levels are expected to be high as indicated by the standard level of kit found in the European 20 xDrive, which we’ll cover in more detail in the interior and tech section.

At the entry point, the 20 xDrive has a 2.0-litre turbo four-cylinder bolted to an eight-speed automatic transmission with 153kW/330Nm but, unlike the previous most affordable sDrive version, it now has the xDrive four-wheel-drive transmission.

Also standard is the new curved display, which couples a 14.9-inch central touchscreen with a 12.3-inch digital instrument cluster and a head-up display that may or may not be optional for the cheapest X3 in Australia. Watch this space.

A number of options packages will be on offer such as the M Sport, M Sport Pro, Premium, Comfort and Travel and Comfort System packs that add loads of specific features and details depending on the look or feel the customer is going for. This too will be detailed for Australia down the line.

On the outside, all versions have all-LED lighting with the option to upgrade to matrix headlights along with the super-cool Iconic Glow illuminated grille that also comes in two different Dynamic Pattern designs.

Interiors are leather free with front seat electric adjustment and heating as standard, as are 18-inch wheels that can be upgraded to larger options in different designs, while a massive single-piece panoramic roof is a standalone option.

When it comes to the M50 xDrive flagship however, everything is included and a tow bar is the only available option.

Included in its price are massive 21-inch wheels, M Sport suspension and brakes with adaptive dampers, sporty bodykit with aggressive front air intakes, panoramic roof, Harman Kardon sound system, sports seats and black headliner, sports steering wheel and leather upholstery if the customer requests.

As the performance hero for now, it also has a 3.0-litre turbocharged straight-six engine with 293kW and 580Nm fed through the same eight-speed automatic and all-wheel drive but gains an electrically locking limited-slip differential.

Despite the significant amount of specification and performance offered, the M50 has only increased by $100 over the previous X3 M40i which it essentially replaces for an asking price of $126,900.

Meanwhile, the X3 20 has increased by $1400 to $84,500 which, given the extra technology and inclusion of all-wheel drive, seems like a negligible increase.

A 30e plug-in hybrid version is available in Europe but not yet confirmed for Australia to do battle with Audi’s PHEV Q5, but when you consider that the entry point of the new X3 is cheaper than the equivalent Audi Q5 and a lot more affordable than the expensive Mercedes-Benz GLC, it presents a very attractive package.

How does the X3 drive?

Perhaps we’re being unkind to the X3’s target audience or perhaps we’re just showering the previous model with praise, but the G01 generation didn’t really need its dynamics sharpening. Nonetheless, the G45 model is even better to drive.

With a comprehensively revised suspension layout, which now includes adaptive dampers in Euro markets, the X3 has an even more broad range of personality from the comfortable end of the spectrum to the feisty. However, it’s not yet known if you’ll have to pay extra for the fancy dampers for our local spec.

While hard to find a German road representative of the average Australian specimen, we did eventually chance upon some surface damage and discovered the ride is stoic and unflustered by poor condition roads.

In all modes there is a satisfying firmness that never translates into discomfort instead adding a sense of confidence and substantial quality in all driving. In the sportier modes however, the X3 is a real hoot, It’s steering sharper than ever while the body control is impressive.

Terrible weather conditions prevented the full extent of the 20 xDrive’s dynamic ability but that leaves something to come back for when it arrives in the first quarter of 2025 and at least we were able to have a close look at its slightly enhanced engine.

Compared with the previous X3 2.0-litre turbo, the latest engine gains 18kW and 30Nm, which is apparent in solid acceleration off the mark. And while the performance when rolling is less impressive, it is still more than enough to satisfy the keen driver or simply daily duties. Let’s call it adequate.

The M50 however is a bit of a knockout. It’s engine is up a few kilowatts but a more significant 80Nm which, for an engine that wasn’t exactly asthmatic already, is excellent in practice. The mid-range torque when opening the taps is exhilarating and demolishes overtaking moves with ease and fun.

But the silky six is just as happy to rev out cleanly to 6000rpm with no perceptible flattening of the power curve. Best still is its noise which is delicious regardless of the engine speed. If rumours are true and the next full-fat X3 M will be electric, this could be the last straight-six petrol X3 we get.

Unsurprisingly the lovely ZF eight-speed transmission delivered the perfect drivetrain accompaniment to the beaut engine with a level of intuitiveness that seemed to know when aggressive fast ratio changes or smooth barely perceptible shifts were required, regardless of the driving mode.

And if the 20 xDrive is its blank canvas with plenty of potential, the M50 chassis delivers a wonderful blend of cornering grip, pointy steering and monumental braking performance. Thank goodness the sun came out on our otherwise dreary European drive just in time.

As for technological driving enhancements, there were a couple. Not only does the head-up display offer augmented direction indicators, it also has an innovative new feature which makes the upcoming corner arrow glow red or amber.

If you’re approaching the next bend close to the recommended speed the arrow pulses orange but if you’re coming in too hot it’ll change red. A clever feature for enjoying unfamiliar roads.

Also, traffic sign recognition not only flashes a screen warning for stop signs but also sounds a polite warning too.

Finally, like many other manufacturers, BMW has now included a warning sound if the posted speed limit is exceeded which does default back on each time the vehicle is started. However, a long press of the steering wheel ‘set’ button silences it, which we liked.

What is the X3’s interior and tech like?

For what it’s worth, the exterior design of the new X3 is bang-on. It manages to be handsome and attention-grabbing without resorting to cheap tricks and divisive styling cues, instead opting for clean restrained lines and excellent proportions.

If you agree, you’ll also love the interior which is striking and bold but will stand the test of time like a full-bodied schwarzriesling. The Interaction Bar, which extends from door to door via the centre console and lower edge of the central screen, is almost obscenely pretty, utilising chunky gloss plastic to diffuse an animated and colour-changing LED light signature.

It sits in a sea of lovely materials such as soft-touch plastics and a choice of pleasant knitted fabric textiles which become even cooler and more desirable when you consider they are up to 100 percent recycled. As many as 150 PET (polyethylene terephthalate) bottles can be used in the construction of a new X3.

There’s also a completely cow-free steering wheel which, if we hadn’t been told, would have been passed off as good-quality leather. We also rate the more than 90 percent recycled seat upholstery very highly, which looks premium and sporty, and feels great too.

A pair of USB-C ports are offered for the front passengers along with wireless device charging, while rear occupants also have their own classy digital climate panel. There’s a 12-volt socket in front, another in the boot.

But the real tech centrepiece in this G45 X3 is the vast digital display. Pinched from the latest 5 Series, BMW’s Curved Display contains the OS9 operating system and iDrive Quickselect, which is the company’s attempt to make everything easy to access.

It works very well thanks to ‘zero layers’ and nothing buried in sub menus. Everything is easy to find residing in either intuitive swipe screens or tabs concealed off to the side or top and bottom.

We particularly liked the cloud-based features such as navigation which means the maps are continuously updated and you won’t get lead down a dead end or into traffic regardless of how recently it’s occurred.

But one element we had a less easy time understanding was the new Digital Premium services which are the latest evolution of BMW’s controversial subscription model.

With the OS9, customers can now buy additional digital features including a whole host of third-party applications or additional ‘themes’ to customise their My Modes if the three standard modes are not exclusive enough.

With so many day-to-day convenience and entertainment applications available through personal devices and smartphones, it’s hard to see how many BMW owners will sign up for the subscriptions service especially as the applications are unique to the operating system.

And even more so when many of the most popular driving applications such as Waze are not available at BMW’s app store and it and many others are available to use in any given BMW model through Android Auto and Apple Carplay mirroring.

One finally small gripe we have with the interior regards the quality of plastic used on the interior door handles which is scratchy and hard while other infinitely less frequently touched surfaces are covered in such good quality materials.

You’ll be reminded every time you close the X3 door but it’s easy to forget when you glance around the lovely cabin each time however.

It’s also practical. While only growing a few millimetres over the previous version, the 2025 X3 has a cavernous 570-litre boot which expands to 1700L with the seats folded, while space in the second row is notably generous with rear passengers being treated to the same quality materials and even their own touch-sensitive digital climate control panel.

Is the X3 a safe car?

BMW claims around 40 ‘automated driver assistance systems’ are offered as standard by the new X3. Highlights include the most sophisticated AEB, which detects vulnerable road users, adaptive cruise control, active lane-keep assistance, cross traffic warning and assistance, junction traffic assistance and a brake-fade compensation function.

There are also curtain airbags for all occupants as well as a central airbag between the front occupants. Exact safety inclusions and a rating from the Australasian New Car Assessment Program (ANCAP) will have to wait until closer to the X3’s introduction.

It might be of interest that the previous generation X3 scored the maximum five stars but a lot has changed in vehicle safety and the way the ANCAP evaluates cars since the third generation was tested in 2017.

What are the X3’s ownership costs?

A useful analysis of the X3’s ownership cost will have to wait until a longer test and once we have Australian servicing details for the new model.

However, both engines now feature a 48-volt mild-hybrid system, which is not geared to boosting performance but, says BMW, aimed at increasing low-speed responsiveness and fuel economy.

Given the claimed average WLTP fuel use of the M50 is 8.3 litres per 100km and our reported figure after an afternoon having a lot of fun was just 8.6L/100km, we’d say something is working very well in the economy stakes.

All BMWs have a five-year/unlimited-kilometre warranty, while unusually, service intervals are variable.

Rather than a fixed distance, BMW’s condition-based servicing (CBS) allows the vehicle to ‘ask’ for a service when necessary according to the environmental conditions and the manner in which it has been driven.

The honest verdict on the X3

The 2025 BMW X3 is possibly the easiest premium mid-sized SUV on the market to recommend, though we’d like to see final Australian specification to fully nut out the value proposition once it hits local showrooms.

Not only does it continue three generations of right-sized SUV evolution over two decades, and fun dynamics for the driver but excellent practicality for the family, it’s now wrapped up in stunning design and stuffed full of style and tech.

That in itself would be worth paying for and yet, the new range kicks off at just about the most affordable price in any German prestige brand’s line-up, and has not inflated the cost over the previous model.

There’s more to come in the fourth-gen BMW X3 family but the two-variant offering that’ll arrive early next year gets everything off to a flying start.