The BMW X3 has earned its place as a firm favourite among premium compact SUVs, and the fourth-generation model proves exactly why. After more than two decades of steady refinement, this latest version arrives with a chassis that strikes a rare balance. Where some rivals feel heavy and ponderous and others jar over bumps, the X3 settles somewhere happily in the middle. Petrol, diesel and plug-in hybrid options round out a line-up that has plenty to offer almost any buyer.

The current X3 landed at the close of 2024, bringing fresh styling, a larger body and reworked powertrains. It is now combustion-only, since the electric iX3 has shifted to a separate platform. The range opens with the petrol xDrive20, the xDrive20d serves as the lone diesel, and the xDrive30e blends that same petrol unit with plug-in hybrid hardware. The M50 sits at the top as the performance flagship. Every version drives all four wheels through a standard automatic gearbox, and all bar the M50 come in xLine or M Sport trims with packs that lift the tech and comfort on offer.
On the road, the X3 lands a clever compromise between ride and handling. The Alfa Romeo Stelvio remains the sharper choice for keen drivers, yet the BMW runs it close through the bends while serving up more comfort. The diesel deserves singling out, since it is smooth and hushed enough that most drivers would never clock it as an oil-burner, and its 400Nm of torque keeps the eight-speed automatic relaxed rather than forever hunting for lower gears. Steering is light and quick, which makes town work effortless, though it leaves the X3 short of the engagement BMW once built its name on. Push hard, and the body stays impressively level, with a neutral balance once the tyres begin to let go.

Running costs hold up well, with the diesel proving the standout. Cruising at 70mph, it slipped into the mid-fifties for mpg, and across mixed roads with brisker driving, it averaged 46.8mpg, bettering the petrol-hybrid Lexus NX. The plug-in 30e can stretch further still, with a 22.3kWh battery good for up to 56 miles of electric running, and real-world testing came within 2.5 miles of that figure. Charging tops out at 11kW, so a 20 to 80% top-up takes a touch over two hours. Resale values stay strong too, with the X3 expected to hold between 49 and 56% of its value after three years, edging out both the Audi Q5 and Volvo XC60.
Inside, the cabin carries a concept-car flair that feels more modern and special than almost anything else in the class. A gently curving dashboard sweeps into the cabin, twin displays angle towards the driver, and glowing strips trace the doors and centre console. Build quality is mostly solid, though a loosely fitted door panel and a few cheaper plastics let the side down. The latest OS 9 software ranks among the best around, with crisp graphics and quick responses, and the X3 keeps its handy iDrive clickwheel where some BMWs have ditched it. Practicality is sound rather than spectacular, with a 570-litre boot, generous rear headroom and easy child-seat access. A full five-star Euro NCAP rating from 2025 rounds off a thoroughly accomplished package.
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