The BMW X3 has motored its way into a commanding position within the premium compact SUV segment, with the fourth-generation model (codenamed G45) drawing on more than two decades of Bavarian engineering heritage. Having steadily refined the recipe since the very first X3 rolled off the production line, BMW has produced a machine that nails the tricky balance between a composed ride and accomplished handling. Where some rivals feel ponderous over rough surfaces, and others transmit every jolt through the cabin, the latest X3 threads the needle with impressive poise, supported by a well-judged line-up of petrol, diesel and plug-in hybrid powertrains.

Launched at the tail end of 2024, the current X3 grew in both size and presence, though it now sits purely as a combustion-powered offering because the fully electric iX3 has moved onto an entirely separate platform. Power comes courtesy of a carried-over engine family that has been sharpened for performance and efficiency, kicking off with the petrol xDrive20 and the xDrive20d diesel. The xDrive30e marries that petrol engine to plug-in hybrid hardware, while the range-topping xDrive M50 stands as the performance flagship until the next full-fat X3 M arrives on showroom floors. Every variant runs an automatic gearbox paired with four-wheel drive as standard, and buyers can pick between xLine and M Sport trims across the board, with the M50 sitting in a specification of its own.
Behind the wheel, the X3 serves up a well-rounded driving experience rather than outright sporting flair. The Porsche Macan and Alfa Romeo Stelvio remain sharper tools for enthusiasts, yet the BMW trades a fraction of that keenness for noticeably greater everyday comfort, keeping the body tightly controlled through corners despite tipping the scales at nearly two tonnes. Steering is light and responsive around town, which makes urban manoeuvring effortless, though purists will miss the feedback that older BMWs used to deliver through their rims. The 30e plug-in hybrid makes real progress over its predecessor, with its 181bhp electric motor contributing to a 295bhp combined output and a usable 19.7kWh battery unlocking up to 56 miles of zero-emission running. The 393bhp M50 xDrive brings mild-hybrid muscle to the twin-turbo petrol six, while the mild-hybrid 20 petrol and 20d diesel remain the sweet spots for most drivers.

Running costs across the range are respectable, with the diesel emerging as the frugal champion during real-world driving by cruising comfortably in the mid-fifties miles per gallon on motorway runs and averaging 46.8mpg overall. The petrol returned just over 35mpg in testing, while the plug-in hybrid flatters its figures when charged regularly but dips considerably when battery power runs dry on longer journeys. Charging on the 30e tops out at 11kW from the on-board cable, meaning a 20 to 80 per cent replenishment takes roughly two hours and 15 minutes, trailing rivals like the Audi Q5 that accept far faster DC charging. Depreciation data shows the X3 holding between 49 and 57 per cent of its value after three years or 36,000 miles, edging the Audi Q5 and comfortably outpacing the Volvo XC60 in that department.
Slide inside, and the cabin feels genuinely special, with a concept-car atmosphere created by the curved dashboard, angled digital displays and glowing ambient trim strips that sweep through the doors and centre console. Infotainment duties are handled by BMW’s slick OS 9 software, running through crisp graphics and responsive touch inputs while retaining the ever-useful iDrive clickwheel. Build quality largely impresses, though the plastics around the door release feel surprisingly loose for a premium machine. Practicality is another strong suit, with a generous 570-litre boot in combustion models (the plug-in hybrid drops to 460 litres), plenty of rear headroom and a towing capacity of up to 2.5 tonnes on the diesel. The X3 scooped a full five-star Euro NCAP rating in 2025, and our pick of the range is the xDrive20d M Sport, which blends frugal motoring with a touch of extra visual attitude.
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