2025 BMW X3 M50 xDrive review

There are a lot of things BMW does well when it comes to building cars, but there are two standouts – one, imbuing performance into otherwise everyday cars; and two, powerful inline six-cylinder engines.

Combining those two traits has given us some of the most iconic cars ever, and almost all of them wear the hallowed ‘M’ badge.

And that remains true of the BMW X3, an otherwise comfortable and well-appointed medium SUV which, with the addition of BMW’s M division magic wand, transforms into a capable and soulful performance SUV.

The fourth-generation BMW X3 (internal code G45 for the BMW anoraks out there) was revealed to the world in June 2024 and made its way to Australia early in 2025.

Just two variants found their way to local dealerships initially, later joined by the 2025 BMW X3 M50 xDrive (to confer its full title). Then came the diesel-powered BMW X3 xDrive 40d to round out the line-up.

The flagship of the range might not be a full-fat ‘M’, but on paper there is enough of BMW’s skunkworks fairy dust to elevate it above the ordinary. It is, for now, the most potent X3 money can buy, with the German brand yet to confirm whether there will be a successor for the previous generation’s BMW X3 M.

But does that dilute the M experience? Or is there enough of that ‘Ultimate Driving Machine’ magic for the BMW X3 M50 to stake its claim as a worthy flagship for the range? Let’s find out.

The 2025 BMW X3 M50 xDrive is the top dog in the wider X3 range, priced from $129,600 before on-road costs and options. That’s over $40K more than the entry-level X3 20 xDrive ($86,800 before on-road costs), around $25K dearer than the plug-in hybrid X3 30 xDrive ($104,800), and exactly $20K more expensive than the diesel-powered X3 40d xDrive ($109,600).

But it’s also a different animal to its X3 siblings, the headline act a snarling 3.0-litre turbocharged inline six-cylinder engine under the bonnet. On its own, it’s good for 280kW and 540Nm. But, the addition of a 48V mild hybrid system boosts total outputs to 293kW and 580Nm, enabling a 0–100km/h sprint time of 4.6 seconds.

You’d expect a flagship model to be brimming with flagship-worthy equipment. And it is.

Standard-fare highlights include 21-inch alloy wheels, adaptive suspension, a 14.9-inch touchscreen with wireless and wired Apple CarPlay and Android Auto, and a 12.3-inch digital instrument display as well as a head-up display.

There are also adaptive LED headlights, synthetic leather-look and Alcantara seat upholstery, power-adjustable front seats with heating and cooling, a 15-speaker Harman Kardon sound system, heated outboard rear seats, and a comprehensive suite of BMW’s safety and advanced driver assist and systems that we’ll detail later in this review.

M-specific equipment includes the M Sport Pro pack, which adds red brake calipers and M-branded seatbelts, as well as M Shadowline lights that replace chrome detailing inside the headlights with blacked-out elements, lending the X3 M50 a tougher appearance. This is complemented by BMW’s famous kidney grille, which is illuminated for the first time on the X3 range. An M-specific rear spoiler completes the look.

Unusually, BMW has kept the options list for the X3 M50 mercifully short, with only three paint hues of the 10-colour paint palette commanding a premium of either $2000 or $4000 depending on whether it's metallic or matte.

There are two Merino leather options for the interior at $4000 a pop, a knitted textile instrument panel at $1200, and a powered trailer tow hitch that extends and stows away at the press of a button in the luggage compartment.

Our test car, finished in a $4000 shade of Frozen Pure Grey metallic paint, was fitted with the trailer tow hitch, and also an over-the-air upgrade to Parking Assist Professional, which replaced the standard-fit Parking Assist Plus. It’s priced at $569.

All up, the X3 M50 in this review sits in showrooms for $136,369 before on-road costs, or around $147,000 drive-away (in NSW).

Buyers playing in this sphere might also consider the Audi SQ5, priced from $106,400 for the SQ5 Edition One and $122,400 for the SQ5. Mercedes-Benz throws its hat in the ring with the AMG GLC43 priced from $136,900. A slightly more affordable option is the Genesis GV70 Signature Sport with its 3.5-litre V6 turbo priced from $100,200. All prices are before on-road costs and options.

And if you want to check out the BMW X3 in the metal, head on over to your local BMW showroom. You can find your nearest BMW dealer here.

If you're looking for more pricing, specifications, and latest offers on the BMW X3, click here.

The new X3’s cabin feels a little underdone for what is a near-$150K BMW on the road. Restraint is the new order, and while there are elements with visual impact, this redesigned interior has – arguably – less ‘wow’ factor than previously.

Yes, there are strips of illumination that add some visual flair, and the liberal use of M tri-colour stitching throughout highlights the X3 M50’s sporting bent, but there are also a few too many surfaces clad in hard plastics, mostly down low under the line of sight. They look and feel cheap.

Not so the seat upholstery, made from synthetic man-made Veganza ‘leather’. Sure, the cabin isn’t redolent with that unmistakable leather smell, but you’d be hard-pressed to tell the difference, such is the softness and suppleness of the man-made stuff.

The front seats are nicely bolstered, especially at the sides, and offer decent support and comfort. Power adjustable up front and with heating and cooling as standard, finding the ideal driving position is a cinch.

A new flat-bottom steering wheel is something of a change for BMW, which has doggedly persisted with round steerers in the face of prevailing trends. It feels solid in hand, with a reassuring heft that’s hard not to like. It’s heated too, which is ideal for those chilly winter mornings.

Ergonomics are a mixed bag. Climate controls form part of the infotainment, although to make life a little easier, they are on perma-display at the bottom of the touchscreen. The short stubby gear selector flanks a rotary dial that adds another level of access to the infotainment system, and particularly useful when driving as you’re not reaching forward and across to access the screen.

It flanked by a small array of shortcut buttons for functions like satellite navigation, home screen, and accessing your smartphone’s call functions, while a nicely knurled volume dial brings a bit of tactility.

Storage options are plentiful, with a decent central storage bin, large door pockets that can hold a couple of bottles each, a pair of cupholders, and a wireless smartphone charging pad alongside an additional space for another smartphone.

Row two is adequate in terms of space and comfort, but not as roomy as one might expect from what is, after all, a medium-sized family SUV. Sitting behind my own 173cm driving position proved comfortable enough, with good toe, leg, knee and head room.

But anyone taller will start to feel the pinch, especially if the driver is a touch taller as well. Helpfully, scallops on the front seat backs provide a little extra knee and leg room. The outboard seats are heated and all three seat backs can be reclined for added comfort.

A large drivetrain tunnel does eat into available foot room for anyone sitting in the middle position, while the seat itself is firmer than the lounge-like chairs on either side. Three adults sitting across the second row might be a bit of a stretch.

Amenities in row two are decent. There are separate climate controls as well as air vents, a pair of cupholders in a fold-down armrest, big door pockets that can swallow bottles and a pair of USB outlets for keeping devices topped up.

The outboard seats are fitted with ISOFIX child seat mounts, while all three seat backs are equipped with top-tether anchor points. The seats fold in 40:20:40 split fashion to free up cargo space, which measures in at a maximum of 1700 litres, or 570L with the second row in use.

The cargo area is well served in terms of convenience with tie-down hooks, a cargo blind, a 12V plug and LED lighting. Under the boot floor, a wheel-sized well highlights that other markets receive a spare wheel. Not so in Australia, where an inflation kit is the only safety net between you and a call to roadside assistance.

The BMW X3’s infotainment has been updated to reflect the wider stable. Now housed inside a single and gently curved widescreen frame, the setup features a 14.9-inch infotainment screen alongside a 12.3-inch digital instrument display.

It runs BMW’s latest Android-based iDrive 9 operating system, which supports wireless and wired Apple CarPlay and Android Auto, in-built satellite navigation, and DAB+ digital radio.

The system is very responsive to inputs, whether by touch or using the rotary dial, but the vast array of menu items and functions can prove a little bewildering. Helpfully, owners can customise the screen with their favourite features, while a ‘recently viewed’ section makes life a little easier on the move.

Climate functions are screen-based and, arguably, needlessly complicated. The main functions are permanently available across the bottom of the touchscreen, but adjusting the driver's and passenger's air vents is an exercise in frustration, controlled by a touchpad located on the door and a small, fiddly lever located down low by the driver’s or passenger’s knee. It’s a needlessly complicated set-up for something that should be straightforward.

The digital instrument display is a step up for BMW, featuring customisation and improved driving data screens across its 12.3-inch width.

Adding to the amount of information available to the driver, a crisp head-up display projects crucial data directly onto the windscreen.

BMW also offers ConnectedDrive, a companion app that provides a range of remote access features via your smartphone, including TeleServices that monitors the X3’s health and alerts owners when consumables such as brake pads, oil, or just a general service is required. For the full gamut of BMW’s Connected Drive functions, you can read our in-depth explainer here.

The BMW X3 does not have a safety rating. The entire range, including the flagship M50, has not been assessed by Australia’s independent safety body ANCAP.

BMW should be commended for bundling its entire suite of safety and advanced driver assist systems (ADAS) into the entire X3 range. That’s not always the case in today’s automotive landscape, including some of BMW’s premium rivals.

BMW also deserves plaudits for allowing configurability of the X3’s safety systems, meaning you can tailor them to be less, or more, intrusive when driving. The only drawback here is that many of these configurable functions are buried well inside the infotainment system and can take a little while to navigate.

But, I found the default settings well calibrated, with no overly eager interventions or undue tugging at the wheel.

The lane-centring system works particularly well in this regard, keeping the X3 between the lines with gentle interventions rather than jerky and overly reactive steering movements.

And while it’s a little sad to be giving BMW a cookie for incorporating a system that works and works well, which really should be the minimum standard, the reality is all too many of these systems across a broad spectrum of brands hinder, rather than help, the driver.

BMW’s standard five-year/unlimited-kilometre warranty underpins the X3 range, which is par for the course at the premium end of the market.

Servicing is condition-based, meaning the X3 M50 will alert owners when it’s time to visit the workshop for a health check.

A five-year/80,000km service plan asks for $2475 at the time of purchasing the vehicle and includes labour and consumables like oil, filters, brake fluid, spark plugs and comprehensive vehicle check. Other consumables such as brake pads, brake discs and windscreen wipers are included in BMW’s Service Inclusive Plus + pack. BMW does not offer pricing for the more comprehensive servicing pack.

Annual insurance premiums run to $4130 based on a comparative quote for a 35-year-old male living in Chatswood, NSW. Insurance estimates may vary based on your location, driving history, and personal circumstances.

That’s on the high side when you consider the Audi SQ5 in petrol trim costs $3625 annually to insure, while the Mercedes-AMG GLC43 is the most affordable of the trio with its annual premium of $3547.

BMW claims the X3 M50 will use 8.2 litres per 100 kilometres of 98-octane premium unleaded on the combined cycle, a mix of urban and highway driving.

My week covering over 450km of city, urban and highway driving, with a dose of more spirited time behind the wheel thrown in, saw an indicated 9.5L/100km.

The fuel tank measures in at 65L.

There’s a star of the show in the BMW X3 range. And it’s found under the bonnet of this mid-sizer.

The 3.0-litre turbocharged inline six-cylinder doing the heavy lifting here is an absolute delight. With 280kW and 540Nm on its own, boosted by a 48V mild hybrid system, total outputs are claimed at 293kW and 580Nm, enabling a 0–100km/h sprint time of 4.6 seconds.

An eight-speed automatic transmission (not a dual-clutch, hallelujah!) sends drive to all four wheels, ensuring the ingredients for an engaging and characterful driving experience are firmly in place.

Around town, there is a pleasant and quiet demeanour to the way the M50 goes about tackling the daily grind of traffic and suburban running around. It’s effortless moving away from standstill, the lusty six responsive and with a pleasingly gruff exhaust note – still socially acceptable but with a hint of the menace that lurks underneath.

Ride comfort is an improvement over the previous generation, thanks to new adaptive dampers that have been tuned to dial out some of the harshness of the M50’s predecessor. Yes, there is still a taut nature to the M50, even in Comfort mode, which manifests in a brittle demeanour over lumps and bumps and firmness to the way it tackles speed bumps and the like. But it’s also a whole lot more compliant than previously, and those harder edges feel, well, less hard, and more assured.

Sport mode adds a raucous grumble from the inline six powering the M50 – a snarling menace piped into the cabin, admittedly, but intoxicating nonetheless.

Sport mode also dials up the firmness of the suspension and steering, bringing with it a confidence in the M50’s roadholding ability. Here, on the right stretch of road, the X3 in this sportiest of guises delivers on the promise that fabled ‘M’ emblem brings.

Yes, there’s tautness to the ride, but there’s also an assuredness under wheel when tackling some corners and winding sections of rural back road. Simply, the X3 M50 remains pleasingly flat, controlled and controllable.

The revised electronic limited-slip differential at the rear wheels, which apportions torque to the wheel with the most grip, brings stability and an agility belying the X3 M50’s size. It really is a fun thing to toss at some corners, and far more capable than anyone has a right to expect.

The eight-speed auto is at its best here, with quickfire upshifts and intuitive downshifts that never leave the big six feeling underdone in terms of performance. Paddle shifters on the steering wheel give you the option to control your own shifts, but really, the eight-speed is good enough to work it out for itself without impacting on performance.

Improvements to the X3’s variable-ratio steering system bring tangible benefits, not least of all a more natural feel. The older set-up always felt artificially heavy, but here in the new X3 M50, tactility through the tiller is a lot more natural and responsive.

The M Sport brake package offers reassuring pedal feel and linear and progressive retardation of speed, which, like the rest of the M50 package, simply inspires confidence to push that little bit harder when the situation demands.

BMW claims the X3 M50 towing capacities run to 2200kg braked and the standard 750kg braked. We didn't put those claims to the test over our week with the M50, but the inclusion of an optional factory-fit tow bar does signal BMW’s seriousness about its abilities as a tow vehicle. Certainly, 2200kg is comfortable enough for a small camper trailer.

Bear in mind the X3 M50’s 645kg payload, enough for five adults at 90kg each plus all their luggage. But, handing a trailer with a couple of motorbikes out back will diminish that payload.

We’d suggest this is an occasional tow vehicle, and if your needs run to more frequent hauling, then the BMW X5 or X7 might better suit you.

There’s no question BMW’s newest-generation X3 range represents a step up for the nameplate. And never is this more apparent than here, with the luxury-sport-straddling X3 M50.

Sure, it might not be a full-fruit ‘M’ model, but that hasn’t diminished what BMW has done with its skunkworks magic wand, because there is certainly enough of the ‘M’ goodness imbued under its reworked skin to gladden all but the hardest of hard hearts.

There are some downsides, such as the use of cheap, scratchy plastics. And the overloaded infotainment system is a little bewildering, while the fiddly climate adjustments frustrate.

But the standout of the show is the experience behind the wheel. Fast, dynamically adept, and with a combustion soundtrack from that lovely and effortless inline six, the 2025 BMW X3 M50 xDrive deserves a second look for buyers playing in the performance SUV space.

Rob Margeit is an award-winning Australian motoring journalist and editor who has been writing about cars and motorsport for over 25 years. A former editor of Australian Auto Action, Rob’s work has also appeared in the Sydney Morning Herald, The Age, Wheels, Motor Magazine, Street Machine and Top Gear Australia. Rob’s current rides include a 1996 Mercedes-Benz E-Class and a 2000 Honda HR-V Sport.

Read more about Rob Margeit