On sale for 21 years, BMW’s best-selling SUV is back in fourth-generation form. 

The biggest news is the revised exterior and interior design. Outside, the chunky SUV silhouette is soft-edged, with large kidney grilles and flush-fit headlights, with distinctive light signatures at the front. There’s slick, sharp detailing at the side, followed by large rear light clusters that stretch along the back. 

Interior and tech

Inside, there’s no more space than the last X3, but you do get a ‘wraparound’ to BMW’s current design, which centres on the 12.3in information display, and 14.9in infotainment screen. Located on the steeply sloping fabric-trimmed dashboard, this links in with the distinctive triangular trims around the door handles off the fabric-trimmed doors. These are lit in different colours, like the interaction bar at the bottom of the infotainment screen. Below that, there’s a large stowage area, with phone charger.

Infotainment is taken care of via BMW’s latest OS9 software, and in general this is easy to use, thanks to useful shortcuts, and the fact that this BMW still gets a circular iDrive controller. There is even a bank of buttons in the interaction bar, although ventilation is via the fixed controls at the bottom of the infotainment screen. 

The seats fitted on all versions that we drove were comfortable and supportive, and the driving position is good. Space in the back is equally impressive, and there’s the practicality of a 570-litre boot. 

Overall, in terms of style, the new X3 seems to have taken its lead from the bigger iX EV SUV. It will be interesting to see how the incoming Neue Klasse EV SUV, that replaces the iX3, will look alongside it. 

Performance and drive

Underneath, BMW is making claims for major improvements to efficiency and dynamic performance with the new X3. In the UK, the X3 powertrain options will start with the 20, which is fitted with a 205hp, mild hybrid, four-cylinder petrol, with a 36% BIK company car tax implication. Then there’s the 20d, a four-cylinder diesel, with 197hp, up to 48.7mpg efficiency depending on spec, and a 35% tax implication. And finally there’s the M50 range-topper, which boasts 393hp from its 3.0-litre, six-cylinder twin-turbo engine, and a 37% tax implication. 

The 20 we drove with the M Sport equipment grade, which is expected to be most popular for fleet, is best described as willing, smooth and revvy. Sport mode is where it is at its most urgent – but most noisy! It is well-matched to the seven-speed automatic transmission.

We also had the chance to drive the sportiest M50, which has a great six-cylinder soundtrack, and performance that feels every bit as urgent as the official 4.6 second 0-62mph acceleration figure would suggest. 

Elsewhere, considering the X3’s tall dimensions, both versions that we drove had excellent body control, and impressive grip thank to the xDrive four-wheel drive system. Plus, communicative, well-weighted steering (especially the M50!). Although oddly, the M50 on optional 21in wheels was more comfortable than the 20 on optional 20in wheels. 

The new X3’s design inside and out marks it out against the opposition, along with the keen drive. However, the BIK figures of the current model choice are not amazing, meaning the incoming PHEV version will be most interesting to fleet – until the Neue Klasse SUV shows up!  

Positive: Sharp exterior and interior design, good to drive, performance

Negative: Expensive, unsettled ride, no EV option

Standard equipment: Power tailgate, Comfort Access, LED headlights, automatic air conditioning, BMW Interaction Bar backlit, BMW Live Cockpit Plus, BMW Operating System 9, electrically adjustable front sport seats, wireless charging tray, cruise control, Driving Assistant, Parking Assistant

Engines: Petrol: 205hp, 393hp; Diesel: 197hp

Equipment grades: X-Line, M Sport, M50

Transmissions: Seven-speed automatic

ModelBMW X3 xDrive20 M Sport
P11D£49,450
Residual value49%
Depreciation£25,339
Fuel£7,485
Service, maintenance and repair£3,162
Cost per mile60p
Fuel consumption40.9mpg
CO2 (BIK%) 158g/km (36%) 
BIK 20/40% a month £297/£593
Luggage capacity570 litres
Engine size/power1,997cc/205hp
Score8/10