BMW X3 40d 2026 Review

You pay a premium for the diesel, the 2026 BMW X3 40d costing $111,900 plus on-road costs (ORCs), which positions it towards the upper end of the range.

The G45 range starts at $87,300 (+ORCs) for the petrol 20, a plug-in hybrid 30e is available for $106,900 (+ORCs) and the powerful M50 tops the range at $130,600 (+ORCs), though those considering battery power will also have the iX3 to choose from later in 2026.

Rivals aren’t what they once were. Mercedes-Benz no longer offers a diesel GLC and the Audi Q5 diesel is more aligned with the entry-level X3 in terms of price and positioning.

Judged against the Range Rover Velar D300 ($125,183 +ORCs), the 40d looks good value, though larger vehicles are available at similar money like the Volkswagen Touareg 210TDI Elegance ($105,990 +ORCs) and Audi Q7 45 TDI ($120,530).

If you’re powertrain agnostic, the field expands exponentially with plenty of petrol- and EV-powered options from the aforementioned manufacturers as well as Lexus, Polestar, Genesis and Volvo.

There still seems to be a prevailing sentiment that premium German cars come standard with some carpets and windows and that’s about it, but that hasn’t been the case for some time and certainly isn’t with the 2026 BMW X3 40d.

It might wear a substantial sticker price but it comes loaded with kit including powered sports front seats with heating and ventilation, heated outboard rear seats and steering wheel, adaptive LED headlights, 20-inch M wheels, adaptive suspension, head-up display, M Sport body kit, a panoramic glass roof, a power tailgate and roller blinds for the rear side windows, an all-too-rare inclusion in family-oriented cars.

One omission, however, is a spare tyre of any kind, the X3 relying on a tyre repair kit, so there’s a good chance a tow truck will be required for anything other than the most minor of punctures.

You can spend more, of course, with metallic paint being a hefty $2000 extra, ‘frozen’ matte paint another $6000, fancier interior upholstery $4000 and 21-inch wheels $2500. Our test car wore ‘Individual’ Tanzanite Blue paint at $4000 and an Enhancement Package ($2000) that includes an alarm and 15-speaker Harman Kardon sound system, bringing the grand total to $117,600 (+ORCs).

BMW’s standard warranty is five years/unlimited kilometres and roadside assistance is complimentary for three years. Servicing is condition-based (determined by the car’s onboard computer) but a prepaid package is available for $2595 that covers the first five years or 80,000km, which is quite reasonable by premium standards (and even some non-premium!).

The 2026 BMW X3 40d is listed as ‘unrated’ by ANCAP, but there is little cause for alarm as its Euro NCAP rating – from which ANCAP ratings are often sourced – is five stars, with the latest X3 scoring 88 per cent for adult occupant protection, 84 per cent for child occupant protection, 77 per cent for vulnerable road user protection and 80 per cent for safety assist when it was tested in 2025.

Its safety suite is comprehensive, both in terms of airbags and every active gizmo under the sun, including (but not limited to) adaptive cruise control with traffic jam assist, self-parking (including the ability to remember a set of instructions and park autonomously), autonomous emergency braking, lane-keep assist with steering assist, cross-traffic alert, blind-spot monitoring and the onboard drive recorder can provide vision in the event of an accident.

What’s also refreshing is the way these safety systems typically only intervene when actually needed rather than constantly intruding during daily driving – while almost every vehicle has the technology now, the difference in calibration is still dramatic.

To cover the amount of technology contained within the 2026 BMW X3 40d in detail could easily account for this whole review. On a very top-line level the central 14.9-inch infotainment system has wireless smartphone mirroring (Apple CarPlay and Android Auto) and BMW’s latest Operating System 9.

This offers app connectivity for remote vehicle functions, a personal eSim for onboard 5G connectivity, gaming using your smartphone as a controller, customisable ‘widgets’ for frequently used functions, greater use of shortcuts and ‘Hey BMW’ voice control.

Another 12.3-inch widescreen display handles the instruments with a variety of information on offer, from your traditional speed and revs to safety assistance and navigation, though the head-up display negates the need to look at it too often.

BMW ConnectedDrive offers a personal assistant, over-the-air software updates, remote vehicle diagnostics/support, automatic emergency services contact in the event of an accident and you can program your smartphone as a key.  

Two figures illustrate the all-round excellence of the 3.0-litre turbocharged mild-hybrid diesel in the 2026 BMW X3 40d: 0-100km/h in 5.4sec and 6.6L/100km combined claimed fuel consumption. Those who say you can’t have your cake and eat it too need to try this powertrain. 

Developing 223kW/670Nm, the engine provides substantial and effortless acceleration accompanied by quite a cultured straight-six growl – no diesel clatter here. It obviously doesn’t have the breadth of a sporting petrol engine, but its efficiency is ample compensation. 

While the combined claim is 6.6L/100km, on the highway you’ll easy dip into the 5L/100km bracket, which gives the X3 a touring range of well over 1000km even with a safety margin in the 60-litre tank. 

Even when treated like an Ultimate Driving Machine – which we’ll come to – you’ll struggle to get it much beyond 10L/100km. It’s a remarkable display of modern diesel technology. 

There’s only one real question mark regarding the driving dynamics of the 2026 BMW X3 40d so we might as well get that out of the way first. The ride quality could be better. It’s not terrible, but it will often fidget over the many pockmarks on Australian roads and the constant jittering can grow tiresome, though others may prefer the connection to the road surface. 

At least the X3 provides compensation with superb handling for a vehicle of this type. The steering is quick and accurate, allowing you to place what is still a big car – it weighs 1975kg – with confidence. 

Add to this strong brakes, plenty of grunt and a beautifully rear-biased all-wheel drive system and while few owners will feel the need, they could certainly hassle many more sporting vehicles on a twisty road if they wished. 

In day-to-day driving there’s a satisfying ease to the X3. Combine the diesel torque with a smooth eight-speed automatic and you’ll easily master the traffic lights grand prix, and the steering is pleasingly light if you’re tackling the confines of the multi-storey car park.  

A braked towing capacity of 2200kg may also prove useful. 

There’s plenty of initial wow-factor to the interior of the 2026 BMW X3 40d. The design is quite avant garde – at least in comparison to its predecessor – with some unusual material choices, a minimalist aesthetic, dual widescreen displays and glitzy ambient lighting across the doors, dash and centre console. 

Dig deeper and some of those materials could be more premium and while navigating the many vehicle functions becomes easier with familiarity – there are little menu shortcut buttons denoted by three horizontal lines dotted around the cabin – some more hard keys certainly wouldn’t go astray. BMW persists with ridiculously thick steering wheels, too. 

There are no complaints about practicality, however. Rear-seat space is ample in all directions – the G45 X3 sits between the first- and second-generation X5s in size – even for adults and a 570-litre boot, which expands to 1700L with the rear seats folded, should be able to accommodate most needs. 

If you’re in the market for a premium mid-size SUV, it would be remiss of you not to put the 2026 BMW X3 on your consideration list and the new 40d is potentially the best of the lot.  

For those in rural areas and urbanites who lack the home charging facilities to best utilise the similarly-priced PHEV it stands out as the pick. 

Keen drivers will appreciate the extra performance of the M50, but the 40d is certainly no slouch, especially considering the near-$20K saving. While a couple of areas stand out as having potential for improvement – specifically the ride and some of the interior materials – they are quite easily forgiven given how much this car gets right.  

2026 BMW X3 40d at a glance: 

Price: $111,900 (+ORCs) 
Available: Now 
Powertrain: 3.0-litre six-cylinder mild-hybrid turbo-diesel 
Output: 223kW/670Nm 
Transmission: Eight-speed automatic 
Fuel: 6.6L/100km (ADR combined claim) 
CO2: 173g/km (ADR combined claim) 
Safety rating: Unrated

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