The BMW X3 has always been a popular model, drawing fans back over four generations and more than 20 years for its balance of practicality, style and fun. The new 2025 version honours but also improves upon the model’s key attributes, resulting in a truly compelling mid-size SUV that puts rivals on notice.
When we drove the new X3 in Germany at its global launch last September, one of the most exciting things about its all-new offering was its price, which remained virtually unchanged over the previous model. However, since then BMW has confirmed a third variant – the 30e xDrive – will join the entry 20 xDrive and M50 xDrive, and all three are either cheaper or better value, depending on your viewpoint.
A like-for-like comparison is not straightforward, with all versions now all-wheel drive (replacing sDrive rear-wheel-drive options), the X-line discontinued and diesels no more. But when compared to the nearest equivalent, the pricing looks positively sharp.
With a starting price of $86,100 plus on-road costs (ORCs), the entry X3 20 xDrive is $2000 cheaper measure for measure, the mid-range 30e xDrive is $7700 more affordable than the variant it replaces at $104,100 plus ORCs, while the range-topping M50 xDrive is $2100 dearer at $128,900 plus ORCs – an increase of less than 2.0 per cent.
Despite the impressive price structure across the board, the X3 introduces improvements in all areas, whether it be efficiency, performance, quality, equipment or technology. Even space gets a boost without compromising what the X3 has always stood for – a family SUV with performance, quality and practicality that’s hard to ignore.
Highlights include a choice of three powertrains, all of which have some form of hybridisation. Power and torque range from 140kW/310Nm for the entry variant to a whopping 293kW/580Nm for the M50, while the mid-range has a respectable 220kW/450Nm and the advantage of a plug-in hybrid drivetrain.
Inside, each variant gets a premium cabin decked out with quality materials regardless of trim grade. Technology is impressive, with the pairing of 12.3-inch and 14.9-inch digital screens as the centrepiece.
There’s also a head-up display that is one of the largest in the market, and it’s offered across all three X3 variants as standard.
Items previously the preserve of high-spec X3s are also now included for all, such as adaptive suspension, power tailgate, and electric seat adjustment, although posh stuff including a big sunroof, some swanky colours and a high-end stereo are still on the options list unless you climb up to the M50. Supple Merino leather is an option on all models, adding $4000.
The BMW X3 has always stood as a premium mid-sized SUV with the fun and driving pleasure many would expect from the German brand, blended with practicality and tech. To that brief, the fourth-generation model absolutely triumphs.
Its exterior design is bold and angular but also elegant and restrained, while the same sophisticated styling continues within. The seating is firm but comfortable yet supportive and sporty, without the bucket-seat aesthetic that wouldn’t really fit the family SUV theme.
The vast digital displays are high resolution and nicely thought out. The central touch-screen can be navigated either using BMW’s iDrive system or the touch-screen itself and while the company has previously leant towards its own proprietary applications, it’s good to see BMW including more third-party tech in its OS9 system.
A fully digital driver’s instrument cluster is highly customisable and, between its lovely presentation and the equally flexible head-up display, the driver wants for nothing.
The same can be said for passengers, which are treated to luxury and comfort in equal share. Ambient lighting fills the cabin in low light with cool multi-colour (also customisable) light shows, and the second row gets very comfortable and surprisingly spacious seating with USB-C charging and a proper digital climate control panel (optional for the entry model).
However, unlike some other model lines, the most affordable X3 doesn’t feel like an imposter, offering many of the headline features and the same delightful ride quality.
Its powertrain is the main compromise. With 140kW/310Nm available its performance is just about acceptable, pushing the car to 100km/h in 8.5 seconds. Build some momentum and it’s a hoot, but hills and a heavy load might frustrate some.
With more power than any M-performance model before it, it’s probably not surprising that the M50 is the exact opposite. Its turbo in-line six is happy to rev all the way to redline with linear power of nearly 300kW, but the lower part of its rev range is the real cream with 580Nm available from just 1900rpm, and all to a gorgeous aural backdrop.
While some SUVs struggle to deal with increasing tech, size and weight, the X3 isn’t trying to hide anything with its chassis. It’s honest, intuitive and simply good engineering, resulting in a vehicle that corners with poise and feel, and with deft suspension tuning that enables a fantastic ride with correspondingly low road noise.
Snapping up through the eight close-ratio gears is a complete joy and, combined with the pin-sharp steering, sporty body control and monstrous braking, the M50 is a true driver’s car dressed up as a handsome family wagon – just one that covers the sprint to 100km/h in 4.6 seconds and with zero turbo lag when you open the taps.
The real surprise though is the mid-range 30e, which gets a plug-in hybrid powertrain that delivers both efficiency (1.6L/100km with a full battery, claims BMW) and performance (220kW/450Nm).
With a relatively large 20kWh battery, the X3 30e can go more than 90km before needing the 2.0-litre turbo-petrol engine to lend a hand, and this means most daily commutes can be accomplished purely as an EV. And with fast charging, the battery can be replenished in a little over two hours.
But with both petrol and electric working in unison, the 30e powertrain is impressively muscular and potent. Despite rolling on efficiency-focused Continental EcoContact 6 tyres, there is a lot of grip for cornering at pace and braking confidently. Wider rubber at the back promotes a pleasing front-to-rear balance and the instant lag-free acceleration is never too much for the traction on offer.
Finally, all X3 models have a braked towing capacity of 2000kg, which will be adequate for many families and is 200kg more than the previous model.
Our pick is certainly the 30e for its balance of efficiency, EV-only driving and combination of driving fun with excellent ride quality, but its squashy brake pedal is the only undesirable evidence of the hybrid system.
Like its X3 stablemates, proprietary BMW apps aren’t necessarily as resolved as some third-party versions but we’re pleased to see some of the latter are now being integrated. Subscription services remain a controversial subject but, here too, BMW is responding to customer feedback.
While the interior and general cabin quality is of a very high standard, there are still a couple of strange blips such as the nasty plastic surrounding each interior door pull handle. Although, opt for the M50 and most of this is turned into better gloss-black plastic.
We love the fabric mesh material offered as an option for an extra dose of luxury and design but it’s a pricey upgrade at $1200, as is the $6000 (or $4400 when added to the higher-spec cars) for the enhancement pack. Other options such as the $4000 comfort pack and M Sport pack appear to be better value.
It’s not yet known if the M50 will be succeeded by an even more potent X3M as per the previous generation and, if it is, it’s unclear whether the model will be petrol powered or a pure EV. Time will tell.
If you’ve always appreciated what the X3 represents, you’re going to love the new model. Despite its practicality-boosting larger dimensions, it’s still manageable in all driving situations thanks to its excellent vision and some tech features that lend a hand.
It also feels smaller and lighter to drive, with brilliantly fun dynamics that don’t compromise its superb ride quality.
And capping it all off is a design that’s hard to dislike in any capacity and a price tag that has either got smaller or is paired with increased value, depending on how you want to frame it.
As far as premium mid-sized SUVs go, the 2025 BMW X3 is as good as it gets.
2025 BMW X3 30e xDrive at a glance:
Price: $104,100 (plus on-road costs)
Available: Now
Powertrain: 2.0-litre four-cylinder turbo-petrol-electric
Output: 220kW/450Nm
Combined output: 299kW/450Nm
Transmission: 8-speed automatic
Battery: 19.7kWh lithium ion
Range: 91km
Energy consumption: 22.9kWh/100km
Fuel: 1.6L/100km
CO2: 38g/km
Safety rating: Not tested