Awkward, unresolved and ultimately unloved – that’s how the BMW X3 started life. Fast forward from 2003 and the Bavarian mid-size SUV is one of the marque’s most important models. Therefore, the fourth-generation G45 X3 needs to be bold enough to stand out, but not brash to scare off traditional buyers. For 2025 BMW adorns its premium SUV with fresh styling, a thoroughly tech savvy, modern cabin and petrol-electric drivetrains. However, the groundwork must be right in any formula for success, so we’re behind the wheel of the entry-level 20 xDrive to find out if it’s any good.
There isn’t really a direct comparison to make between the entry-level third and fourth generations. As you’ll notice, the 2025 BMW X3 20 xDrive comes with all-wheel-drive (AWD) nomenclature as standard. This is a distinct change given the previous G01 X3 20i was rear-wheel drive only.
It isn’t an entirely new platform, but together with upgraded interior tech, increased luxury and a 48-volt mild-hybrid powertain, there’s little surprise that the price of admission has risen to $86,100 before on-road costs (ORCs). However, because of what the X3 20 now comes with as standard, it’s better value.
Although, if you’re after the venerable inline six-cylinder turbo-diesel engine, you’re out of luck. It’s been dropped. In its place is the $102,500 30e xDrive, which uses a four-cylinder turbo-petrol hybrid system. Need more performance? The $128,900 M50 xDrive has you covered – all prices exclude ORCs.
The X3 compares well to its closest German rivals, too. The soon-to-be-replaced Audi Q5 45 TFSI Sport is $88,315, while the refreshed Mercedes-Benz GLC 200 commands $89,000. Lexus and its NX offers AWD and hybrid power from $76,400.
BMW’s five-year/unlimited-kilometre warranty applies to the X3 and roadside assistance is included for three years/unlimited kilometres. Servicing periods are lengthy at every 12 months or 20,000km (whichever comes first). You can opt for three- or five-year capped-price servicing plans, with the latter working out to $2475 for the period.
If you want proof that the days of sparse and bland base models are long gone, look no further than the 2025 BMW X3 20 xDrive. The German brand might not be happy with this line of thinking, but the entry grade’s specification leaves so few holes that stepping up to more expensive variants is hardly necessary.
It’s fitted with kit such as 19-inch alloy wheels, adaptive LED headlights with daytime running lights, LED taillights, comfort access with digital key plus, powered tailgate and the polarising BMW Iconic Glow – the latter of which illuminates the famous kidney grille. The M Sport pack is standard, as are adaptive dampers.
Inside the X3 20 gains ‘Veganza’ perforated and quilted faux leather – our test car comes in the unique Espresso Brown hue. The front seats are heated and electronically operated with lumbar support (memory for the driver), while tri-zone climate control also features.
However, our test car is far from a ‘base’ specification – it has an impressive $15,400 in optional extras, bumping the price up to $101,500 before ORCs. The most expensive box ticked is the $6000 Enhancement Package, offering metallic paint (Arctic Race Blue), alarm, Harman Kardon premium audio and a panoramic glass sunroof.
Other add-ons include the $4000 Comfort Package, comprising second-row seat heating, roller sunblind (which should be standard), seat ventilation (front), heated steering wheel, privacy glass and a luggage-separating cargo net. Then there’s the $2000 M light 20-inch alloy wheels, $1200 knitted textile instrument panel and the $2200 trailer tow hitch.
The 2025 BMW X3 20 xDrive is yet to be tested by ANCAP and does not carry a safety rating. However, the third-generation X3 was awarded the full five stars.
It’s fitted with six airbags and comes with dual ISOFIX points and three top-tether anchorages.
Active safety is well catered for via BMW’s Driving Assistant Professional. It comprises autonomous emergency braking (AEB) with cyclist, pedestrian and junction detection, rear AEB, radar cruise control, lane keep assist, lane departure warning, blind-spot monitoring, front and rear cross-traffic alert, parking sensors and a 360-degree camera.
The X3 20 also has road sign recognition with speed limit warnings. If this system frustrates it can be switched off. Otherwise, the calibration of the active lane keeping is decent, but it does noticeably tug and pull at the wheel on the highway. Again, it isn’t too difficult to switch off.
Reminding yourself you’re in a base model when faced with a wall of screens is essential. Basically, you aren’t missing out on much in the 2025 BMW X3 20 xDrive.
It’s packed with BMW Live Cockpit Professional, which consists of a 12.3-inch instrument cluster and a 14.9-inch infotainment touch-screen. It appears as one curved wall despite being two separate screens, while the clarity and details of the displays is top notch.
It’s also bang up to date, with the G45 running BMW’s latest Operating System 9 with iDrive and BMW Connected Services. It also runs wireless Apple CarPlay, Android Auto and a voice assistant that will carry out various interior tasks on command.
There’s also a wireless charge pad, USB-C ports, DAB+ digital radio, native sat-nav, interior camera, and NFC key card, while the X3 can accept over-the-air updates.
While the Bavarian brand is known for its inline six-cylinder engines, the four-cylinder turbo-petrol MHEV unit powering the 2025 BMW X3 20 xDrive is commendable.
Yes, its capacity isn’t huge for a body that’s stretching its mid-size SUV designation, yet the modest outputs of 140kW and 310Nm are just enough for most buyers. BMW claims the 20 xDrive will reach 100km/h in 8.5 seconds and there’s a 10-second boost function should you feel the need.
The 48V mild-hybrid application is there for economy reasons, not performance. So, it isn’t a surprise to learn that it mainly aids the start/stop system, powering of auxiliaries and the coasting function. Power is sent to the xDrive all-wheel drive via a ZF eight-speed gearbox.
No, the engine isn’t endowed with a large kilowatt count, but straight-line acceleration isn’t overtly lacklustre given the more than two-tonne kerb weight. The engine is refined and linear, while keeping up with traffic and completing highway overtakes doesn’t trouble it too much. It just isn’t as effortless as you might expect.
As always, the ZF eight-speed automatic remains an outstanding gearbox by offering imperceptible shifts on the move. There are steering-wheel-mounted paddles (and the sequential-style shift gate) should you require them for manual operation.
If ultimate efficiency is your jam, then stepping up to the 30e xDrive variant (1.6L/100km) will be preferable if you can justify the $100K-plus outlay. If not, the 2025 BMW X3 20 xDrive is relatively frugal with a claimed combined fuel consumption of 7.5L/100km.
It translates relatively well in the real world, too. We achieved an average of 8.0L/100km over a near 300km loop including city, suburban and highway conditions. While the X3 20 xDrive requires premium fuel, it accepts the slightly cheaper 95 RON and uses a 50-litre tank.
With a company tagline of ‘The Ultimate Driving Machine’, the 2025 BMW X3 20 xDrive has a lot to live up to. Then throw in the fact it’s a luxurious SUV and the playing field becomes far tougher. And yet, the base-model X3 does an admirable job at pandering to both ideals.
The G45 X3 runs the latest version of the company’s CLAR II platform, one that’s designed to house petrol, petrol-electric and full EV powertrains. It features MacPherson struts up front with a multi-link rear suspension setup, while even the base 20 xDrive now gains adaptive dampers, which is a real win.
Our tester is fitted with optional 20-inch alloy wheels (up from the standard 19-inch items) but, thanks to those adaptive dampers, the ride quality in Comfort mode is, ahem, comfortable. There’s never really any need to slip into Sport mode as the stiffer arrangement is out of step with the 20 xDrive.
Body control remains tight in the plusher setup, with only minor rebound through smooth undulations and slight head toss due to the high centre of gravity.
Grip levels are appreciably high with standard, rear-biased constant AWD. And while there’s not really enough power underfoot to trouble to rear axle, even the 20 xDrive is fitted with BMW’s Sport MDM mode, which affords less intervention from the electronic nannies for increased fun.
The steering is quite remote and lacking feel no matter the driving mode selected, but it remains accurate and easy to live with in Comfort mode – Sport merely adds weight without extra engagement. The brake package is strong and the pedal remains progressive despite the regenerative requirement of the 48V MHEV system.
Overall, the X3 20 xDrive is a very polished and refined experience. It handles with enough verve to more than straddle the line between BMW’s dynamic and prestige traditions.
Given that constant AWD is now standard in even the base 2025 BMW X3 20 xDrive, it is capable of veering off sealed surfaces. Although, this is never going to be an out-and-out off-roader – nor is it expected to be.
There’s 216mm of ground clearance, which isn’t the most generous. In terms of angles, it offers 20.6 degrees of approach, 22.0 degrees departure and 18.7 degrees breakover. There are no dedicated off-road modes.
If you decide to tow – our test car is fitted with the optional towing pack – there’s a 2200kg braked towing capacity and a 645kg payload.
While the exterior styling is a modern step forward, the interior of the 2025 BMW X3 20 xDrive is almost concept-car-esque in its design. Visually there is a lot to take in with myriad materials, angles and lighting all somehow coming together in an interesting yet cohesive way. Hat’s off to the designers.
It might be an extra $1200, but the knitted textile dash (which extends to the door cards) is a beautifully tactile addition to the cabin and is a welcome change if you don’t fancy faux leather. The My Mode themes tie into the drive mode you’ve selected with digital art and the extensive dynamic ambient lighting builds visual intrigue.
As we found out on the local launch of the X3, it isn’t a perfect cabin with some less-desirable plastics finding their way into places you use every day. Plus, the crystal iDrive controller can reflect light straight into your eyes if caught at the wrong angle.
It’s also annoying that some of the controls have been taken out of the multi-function steering wheel and placed within the infotainment screen – the main culprit being the distance settings for the active cruise control. Speaking of the central display, it is a bit of a minefield initially but becomes more intuitive with time.
Elsewhere, ergonomics prove a strong point with myriad places to store bits and bobs like phones and keys.
It might be classified as a mid-size luxury SUV, but the X3 is both longer (88mm) and wider (48mm) than the original X5, such is the rate of growth. And at 4755mm in length, 1920mm in width and 1660mm tall, the fourth generation is 34mm longer, 29mm wider, yet 25mm lower than the model it replaces.
All the measurements equate to a very spacious cabin. Head and legroom in the back is generous, while you can fit three abreast. Amenities are well catered for with rear air vents, map pockets, flip-down centre arm rest with cup holders and USB-C ports.
The other beneficiary of the upsizing is the boot. Cargo capacity in five-seat mode is generous at 570 litres and balloons to 1700L with the 40/20/40-split folding rear pews stowed. Considering the amount of useful storage throughout the cabin, it’s safe to say that the BWM X3 is pragmatic luxury.
Should I buy a BMW X3 20 xDrive?
The 2025 BMW X3 is one of the best premium mid-size SUVs on the market. And, depending on how you look at it, it has just become better value with some cleverly curated standard inclusions.
If merely getting into an X3 is your goal, then the base-model 20 xDrive is all you could ever need. Yes, it lacks the mumbo of its siblings, but the four-cylinder MHEV drivetrain will be satisfactory for most buyers with the added benefits of frugality and a lower purchase price.
It’s a shame six-cylinder turbo-diesel propulsion has been cut from the range, but the 30e xDrive fills the void nicely. While a little more muted than its predecessor, the M50 remains a strong contender if the added performance of the turbocharged inline-six appeals.
Ultimately, the X3’s metamorphosis from an ugly-duckling upstart to a matured, consummate professional is remarkable. More than ever, it deserves its place within BMW’s SUV family.
2025 BMW X3 20 xDrive at a glance:
Price: $86,100 before on-road costs
Available: Now
Engine: 2.0-litre four-cylinder turbo-petrol mild-hybrid
Output: 140kW/310Nm
Transmission: Eight-speed automatic
Fuel: 7.5L/100km (ADR Combined)
CO2: 171g/km (ADR Combined)
Safety rating: Not tested