2025 BMW X3 review

While some brands appear to have hit a snag in reinventing their popular models, BMW continues its recent form of producing ultra-modern luxury vehicles with the launch of the all-new fourth-generation X3.

The 2025 BMW X3 has big shoes to fill, with the outgoing model being the brand’s seller in 2023 globally and in Australia.

Now in its fourth generation, the German company has been producing the X3 since 2004 with over 3.5 million units sold. While it’s easy to brush aside the heritage of a mainstream model like the X3, the refinement that has come from over 20 years of improvements is certainly felt in the new SUV – even if BMW insists we call it an SAV (Sports Activity Vehicle).

From the outside, the X3 carries a familiar modern face first seen in the new X1 and X2, but now taken up a notch both in its aggressive design and sophistication. Measuring 4755mm long (+34mm to its predecessor),1920mm wide (+29mm) and 1660mm in height (-25mm), the X3 is not the small SUV it once was.

In fact, it’s now longer and wider than the first-generation BMW X5, a good indication of just how much cars have grown and why this isn’t really a medium SUV any longer, but practically a large one.

WATCH: Alborz’s video walkaround of the 2025 BMW X3 M50 xDrive with M Performance Parts

For those that appreciate good aesthetics, the X3’s front end is embraced by a new (and bigger) split BMW kidney grille that is now available with optional illumination surrounds, or what BMW calls ‘Iconic Glow’. This really emphasises the car’s modernity at night and adds a more premium appearance.

The grille itself has been modified and is available in differing styles depending on the variant you pick. The new twin headlights have a new light element with the L-shaped daytime running lights while that’s complimented on the rear with a T-shaped look.

Ultimately, this is a much better looking car than the one it replaces and it’s arguably a much better looking car than its direct German rivals.

The new BMW X3 arrives in Australia early next year with the initial batch of cars only available as the 20 xDrive and M50 xDrive. Front-wheel drive and hybrid models will not be available at launch.

How does the BMW X3 compare?

View a detailed breakdown of the BMW X3 against similarly sized vehicles.

BMW

X3

How much does the 2025 BMW X3 cost?

The 2025 BMW X3 is up to $2800 over the previous-generation model, depending on the variant.

To see how the BMW X3 stacks up against it rivals, use our comparison tool.

What is the 2025 BMW X3 like on the inside?

The interior of the BMW X3 is perhaps where that modern sophistication is most prevalent.

In some ways, it’s that initial ‘wow’ factor of the high-quality displays that might get buyers interested, but the X3’s new interior is designed and executed so elegantly in that ‘less is more’ way that always screams ‘German’.

The biggest change is the introduction of the new infotainment system and instrument cluster. What the Germans call the ‘BMW Curved Display’ is the marriage of two super high-quality screens, one 12.3-inch digital instrument cluster and one 14.9-inch touchscreen infotainment system.

Although they are linked, they are indeed two separate screens and where an upstart brand like Genesis has managed to make its similarly designed dual screen setup appear as one, the X3’s two screens still have a distinguishable beginning and end between them.

It’s not as obvious when the units are turned on. It’s important to emphasize these are some of the nicest displays in a modern car. They are super sharp, fast and run BMW’s latest operating system, BMW OS9, based on the Android open-source platform.

One of the downsides of this ultra-modern shift in car technology is the removal of most physical buttons. The climate controls are now operated using the centre screen rather than a collection of physical buttons and knobs.

BMW has introduced what it calls an ‘Interaction Bar’, which sits below the second screen and allows you to control the airflow and operate the hazard lights if need be.

We really wanted to complain about the lack of physical controls for the climate control system. Still, the permanent placement of the temperature controls at the bottom of the screen alleviated those concerns.

We also love the vent controls on the two front doors, allowing you to run your finger over the sensor to change the fan speed on the fly without taking your eyes off the road.

There is an almost unnecessary amount of technology in the new X3. BMW has gone overboard trying to be a technology company, by even introducing its own app store so you can download apps like Audible and native podcast applications.

In Europe, you can even download an app to watch live TV or streaming entertainment (only when the car is stopped).

It sounds good in theory, but it makes very little sense why you would want an app to watch TV in your X3 given it only works when the vehicle is stationary.

Cars aren’t meant to be stationary, and if you are finding yourself watching TV in your stationary car, we have some questions for you.

There are even a whole bunch of games (like UNO) you can download to play in your X3.

However, these only work when the vehicle is stationary, and again we question why you wouldn’t just use your phone (or physical cards) to do so if the vehicle is parked. Perhaps BMW knows its customers better than we do because we can’t see a practical use case for gaming in our stationary SUV.

The purpose, we feel, is to allow apps that don’t have native Apple CarPlay or Android Auto integration to work on the BMW’s native operating system. However there are no apps that worked while the X3 was moving that we felt enhanced the driving experience.

On the plus side is the fantastic interior lighting system, which we will go out on a limb and say is by far the best in class compared to what is on offer from the other German or Asian manufacturers.

You can manually set a solid cabin colour as you wish, but there are a number of default themes. These go from a sporty vibe to a relaxed or soothing calmness of lights casually moving around the cabin.

Not happy with those? You can purchase new colour schemes from the BMW App Store (yes, seriously). Again, this seems a little unnecessary. If you’re spending about a 100k or more on a luxury car, the entire light theme features should be free.

To take things to yet another level, the X3 has a ‘selfie cam’ built into the roof which allows you to take photos of you and all your occupants (which, again, only works once the vehicle is stopped).

We tried it, and we can’t imagine any moment in time outside of perhaps showing the kids the first day you bought the car where it would be of use. You could use your smartphone if you absolutely had to get a photo of yourself in your new BMW.

The useful part of the camera system is it will take some reasonably nice photos of anyone who happens to break into your car.

If this sounds like criticism, let us assure you that it’s nothing of the sort. The fact these seemingly unnecessary technology features exist does not diminish the excellent interior and cabin of the new X3.

The super comfortable seats, the thick and high quality steering wheel and the amount of space available to front and rear occupants is delightful.

We especially love the charging station BMW has built in the centre console. It’s such a basic idea that so many manufacturers get so wrong.

You can also choose the new BMW X3 to have a completely leather-free interior, with the steering wheel and seats now made from recycled materials.

At the X3’s international launch in Munich, BMW made a massive song and dance about how it now tracks its emission footprint for vehicle production and how much of the power and material used in the construction of the new X3 is renewable and recycled. If that means anything to you, it’s a bonus.

The infotainment system itself was excellent with the default navigation app utilising Google Maps satellite imagery and blending reality with guidance thanks to the use of augmented reality, which superimposes navigational instructions over your live view route using numerous cameras.

One peculiar negative for the interior of the new BMW X3 is the interior door handles and surrounds feel like they’re made of a sub-par material. They’re made of super scratchy and hard plastics.

It’s odd because every other surface, including the dashboard, is made of high-quality soft materials.

Overall though, the interior of the new X3 takes a significant leap forward over its predecessor and blends a fantastic case for modern luxury with a technological focus. Unlike some of its rivals, the technology in the X3 is fast, efficient and almost overwhelming.

Perhaps BMW has taken an approach of throwing everything at it and letting the customer decide? Either way, it’s a win-win.

To see how the BMW X3 stacks up against it rivals, use our comparison tool.

What’s under the bonnet?

Both BMW X3 variants now receive a 48V mild-hybrid system.

While local fuel economy figures haven’t been detailed yet, BMW published the following figures at the reveal of both variants.

On the WLTP lab test cycle, the X3 20 xDrive consumes 6.9-7.6L/100km, while the M50 xDrive is thirstier with a combined fuel consumption of 7.7-8.3L/100km.

To see how the BMW X3 stacks up against it rivals, use our comparison tool.

How does the 2025 BMW X5 drive?

We asked one of the head engineers of the new BMW X3 what feedback the company had taken onboard from previous-generation customers that they believe is now addressed with the fourth-generation car, and the answer was — surprisingly — the steering system.

Truth be told, we never felt there was much wrong with the previous-generation’s steering given the majority of the X3’s life is spent in suburban traffic.

Even so, we were pleasantly surprised by how refined and confidence inspiring the X3 felt on Munich’s super wet and tight roads.

For our drive component, we only had the opportunity to drive the popular but base 20 xDrive, which uses a four-cylinder turbocharged engine with 153kW of power and 330Nm of torque, driven through an eight-speed automatic transmission via all four wheels.

With the 20 xDrive weighing somewhere between 1855-1930kg, it may not seem like a lot of grunt but we felt it was more than adequate for the vehicle’s intended purpose. More so, the adaptive suspension made the ride quality feel sensational (at least on European roads).

Our test car had 20-inch wheels and in the ‘Comfort’ setting the ride felt super supple and assured over bumps and uneven surfaces. It stiffened up in the ‘Sport’ or ‘Sport plus’ setting, noticeably reducing body roll and making cornering more enjoyable.

The dual personality of the car is only possible due to the new adaptive suspension system and while we will reserve final judgement until we drive the car in Australia, first impressions of the ride quality are incredibly positive.

The engine and transmission combo also worked a treat, with smooth shifts you barely feel, to its capacity to drop down gears when required without a fuss.

BMW – being a company ran by car enthusiasts – has also pre-programmed the ‘SET’ button on the X3’s cruise control system to disable the extremely annoying speed assistance systems that are mandated in Europe and forced on Australians.

All you have to do is hold down the ‘SET’ button on the left of the steering wheel for three seconds and the feature will be automatically turned off. A godsend.

Despite our many attempts to upset the balance of the X3 around corners or accelerating out of a roundabout in wet conditions, this fourth-generation model endured the abuse and never felt bothered. We should also commend the quietness of the cabin as it’s a very pleasant place to be.

To be totally frank, unless you just want a more aggressive-looking car with additional power you probably can’t really use, the 20 xDrive is an absolute sweet spot for the X3 range.

It does everything well, and it never feels underpowered or unable to perform an overtaking manoeuvre on the highway. So much so that we had it sitting at speeds close to 200km/h on the Autobahn for extended periods of time, and it never missed a beat.

To see how the BMW X3 stacks up against it rivals, use our comparison tool.

What do you get?

The local 2025 BMW X3 lineup will only consist of two variants at launch.

2025 BMW X3 20 xDrive highlights:

• 19-inch alloy wheels
• Run-flat tyres
• M Sport package
• Adaptive suspension
• Adaptive LED headlights
• BMW Iconic Glow illuminated kidney grille
• Acoustic glazing
• Power tailgate
• 12.3-inch digital instrument cluster
• 14.9-inch touchscreen infotainment system featuring Operating System 9
• BMW Intelligent Personal Assistant
• BMW Digital Premium (90-day trial)
• Remote software updates
• Wireless Apple CarPlay and Android Auto
• DAB+ digital radio
• 6-speaker sound system
• Wireless phone charger
• Head-up display
• 3-zone climate control
• Anti-dazzle exterior and interior mirrors
• Comfort Access and Digital Key Plus
• M Sport leather steering wheel
• Anthracite M headliner
• Veganza upholstery
• Electric front seats
• Heated front seats

X3 M50 xDrive adds:

• 21-inch alloy wheels
• Metallic paint
• M-specific kidney, mirror caps and aerodynamic elements
• Quad exhaust outlets
• M Sport Pro package
• M braking system with red calipers
• Fixed panoramic glass sunroof
• Privacy glass
• M Shadowline headlights and extended contents
• 15-speaker Harman Kardon premium sound system
• Roller blinds for rear side windows
• Heated steering wheel
• Ventilated front seats
• Heated outboard rear seats
• M seat belts

Optional Equipment