For more than 20 years, the BMW X3 has proudly waved the flag as the compact entry of BMW’s famed X series. Introduced just a few years after the X5, which marked the automaker’s foray into the SUV market, the X3 eventually surpassed its big brother, regularly topping all other BMW vehicles on the annual sales charts. Its premium performance, materials, tech, and driving experience helped pioneer a luxury compact SUV segment that now has more than 6% and growing of the total U.S. market share.
BMW knows it can’t rest on its laurels, though, as it faces increasingly stiff competition from rivals like Audi, Mercedes-Benz, Porsche, Genesis, and Volvo. To that end, BMW chose to unleash the fourth generation of the BMW X3 for the 2025 model year. Interestingly, this new edition came only two years after a third-generation refresh, which may speak to the pressure BMW feels to keep the pace up. If you’ve been thinking about finding a BMW X3 for sale, you’re undoubtedly wondering if the newest generation will hit the mark.
Today, let’s look at what’s new with the BMW X3 and how the fourth generation builds on the X3’s place in the luxury compact SUV landscape. It didn’t take long to see that BMW has infused this luxury compact SUV with a sportiness it hasn’t yet seen. Here’s how the automaker sent the X3 flying into the modern age.
Bigger and More Aggressive
You’re correct if you think the fourth-generation X3 looks different than the third-generation one. BMW has overhauled the body and stance of its premium compact SUV and made it larger in the process. Though definitely still a compact SUV, the new X3 is 1.3 inches longer and one inch wider than the third generation. Furthermore, the vehicle is 0.6 inches shorter than its predecessor. This comes almost entirely from reduced ground clearance, so headroom isn’t affected.
These changes have several effects on how the X3 looks and drives. Lower, wider vehicle designs have been shown to improve aerodynamics and handling and produce less body roll while turning. As such, expect the latest BMW X3 to give you a more athletic feel. The lower stance gives the BMW X3 an aggressive edge, making it more like a high-performance SUV, especially when you add more angular body lines. That vibe isn’t limited to appearance, either. The larger size also accommodates powertrain upgrades that help give this SUV a soul to match its body.
Added Power, Pull, and Efficiency
At the end of its run, the third-generation X3 had four powertrains to choose from. However, the last time they were updated was between 2018 and 2020, and the competition was starting to pull ahead. BMW recognized this and redid the lineup, streamlining it for simplicity while also boosting output and using more efficient mild hybrid technology.
The fourth-generation BMW X3 has two impressive engines to choose from. The base power plant in the BMW X3 30 xDrive is a 2.0L I-4 engine with a 48-volt mild hybrid system and eight-speed transmission. Together, they deliver 255 hp and 295 lb-ft of torque. That’s seven hp and 37 lb-ft more than the previous base engine (the xDrive30i) and 74 hp/81 lb-ft more than the now-defunct xDrive20i. You’ll notice the difference immediately as the 0-60 mph acceleration drops from 6.4 to six seconds flat. Even with the added power, the improved hybrid tech and lower roofline improve the EPA-estimated fuel mileage from 24 to 29 combined MPG, adding more than 85 miles to your driving range.
The real star is the 3.0L I-6 engine in the new BMW X3 M50 (which replaces the M40i). It uses the same 48V mild hybrid to increase output from the preceding version’s 382 hp and 365 lb-ft to 393 hp and 428 lb-ft. BMW is estimating a 0-60 time of 4.4 seconds, and that might be high based on MotorTrend’s 4.2 seconds with the M40i. Fuel mileage is still solid as well, getting 27 combined MPG versus the M40i’s 23 MPG. More zip AND spending less money on gas? Sign me up.
A New Chassis and Suspension for a Better Road Feel
If you thought I was done discussing ways the new BMW X3 offers a taste of the high-performance life, think again. BMW completes its trilogy of performance overhauls with major updates to the X3 chassis and suspension. The chassis and body are notably more rigid, which makes the SUV more responsive and helps the tires stay in contact with the pavement. In layman’s terms, this means more accurate steering and better traction. The Sport mode stiffens it further for that track-day-like feel.
The engineers at BMW also updated the suspension to reflect this new priority of agile handling. Dynamic Damper Control and Variable Sport Steering are optional on the X3 30 and standard on the X3 M50, tailoring the experience to how you drive. The X3 M50 also has an Adaptive M Sport suspension, brakes, and rear differential. The wheel size increases from 19 to 20 inches with low-profile tires to give you more grip. I’m betting you’ll quickly forget you’re technically at the controls of an SUV.
Large Screens and Big-Time Tech
Luckily for loyalists, BMW remembered that the X3 is a luxury vehicle first and foremost. In this regard, they’ve catapulted the X3 to another level of onboard technology. The next-generation X3 joins the list of BMW vehicles with its new curved display screen that merges the infotainment and gauge cluster into the same unit, extending from in front of the driver across the dashboard’s center. Both use the latest BMW iDrive operating system with inputs from the touchscreen, steering wheel, voice command, or an old-fashioned rotary knob.
Almost every tech feature you can imagine is standard on the BMW X3, including Android Auto/Apple CarPlay, an internet-based navigation system, satellite radio, HD Radio, wireless charging, a plethora of built-in apps, and the BMW Intelligent Personal Assistant. If you’re unsatisfied with all that, you can add a head-up display, video streaming when parked, and even AirConsole in-vehicle gaming. BMW’s already-expansive list of active driver assistance gets a boost with onboard parking assistance, automatic lane changing, and enhanced adaptive cruise control that recognizes traffic signs.
That’s not to say BMW hasn’t made any other interior changes. On the contrary, the new door panel and dash ambient lighting provide visibility for various controls while giving everyone a thrill. There is also a panoramic sunroof available so you can enjoy the sky above. BMW even gave the X3 sport-style seats that are supremely comfortable for long, fast drives.
The BMW X3 Grows Up
Whether you’re a long-time compact luxury SUV driver or new to the segment, the fourth-generation BMW X3 is worth a look. BMW took what was already great about this vehicle and gave it a healthy dose of upgraded performance and tech, a bolder appearance, and other goodies. The result is a compact crossover that can be a cozy grocery-getter and a weekend thrill-seeker, attracting commuters and adrenaline junkies alike.
It has a lot more opponents than it did when the first generation came out in 2004, but the fourth-generation BMW X3 shows it is determined to remain the vehicle people associate with small but powerful sophistication. I think it’s a worthy heir, and I’m looking forward to seeing how BMW continues to refine the new X3 over the coming years.
