2025 BMW X3 20 xDrive review

BMW pared back the X3 medium SUV showroom line-up from six variants to four in the recent changeover between generations. It means the brand is focusing more of its energy in a narrower band and being smarter about specification lists.

It remains an incredibly important car for the brand, and especially so in this current generation, following its predecessor that reached the ripe old age of seven (albeit with midlife updates).

Prices are up compared to the old BMW X3 entry-level specification, but it’s not comparing apples with apples either. This new car is vastly better equipped and now includes all-wheel drive as standard.

We picked up the most affordable specification – the X3 20 xDrive – to pair against the new Mercedes-Benz GLC200 entry-level variant, but I thought to spin off this single-car review to dive further into the detail.

Prices are up by as much as $4400 when comparing the old X3 xDrive 20i against the new X3 20 xDrive successor (it’s also a different naming convention, bear with me), but extra kit has been added as standard to offset the price increase.

No longer does BMW use an -i suffix to identify a petrol-powered variant. This is a wider push throughout the BMW model range that should proliferate once newer products come out, but the X3 is one of the newest so far to drop the -i suffix.

The X3 20 xDrive is priced from $86,100 plus on-road costs, but there are plenty of options packages to blow that bottom line out.

The car I tested was fitted with the $4000 Comfort Package (heated seats in second row, seat ventilation for front row, privacy glass, window shades, etc) and the $6000 Enhancement Package (panoramic glass roof, Harman Kardon audio, alarm system, metallic paint), unique-design 20-inch wheels ($2000), trailer tow hitch ($2200), and a knitted upper dash treatment ($1200).

This adds $15,400 to the X3’s base price, resulting in a car that’s approximately $113,000 drive-away delivered through a Melbourne dealership.

That’s a lot of extra spend to get basic bits like a sunroof, an up-spec sound system, privacy glass, and metallic paint on a luxury-level vehicle.

It compares with the new Mercedes-Benz GLC200 variant, which is marginally more powerful (150kW/320Nm) and priced from $89,000 before ORCs. Audi’s new Q5 is yet to be priced for local consumption, but is considered a competitor when it arrives before the end of the year.

Powering the X3 20 xDrive is a 2.0-litre four-cylinder turbo-petrol engine that outputs 140kW/310Nm to all four wheels, plus it now uses 48-volt mild-hybrid integration to reduce fuel consumption during times of low demand and supply extra oomph under hard acceleration.

The previous-generation BMW X3’s interior was a pain point for owners and media alike – it was past time for a fresher look, and that’s exactly what the G45-generation has ushered in.

BMW’s new single-panel infotainment and cluster integration looks very modern and slick across the dashboard, while plenty of controls and design changes have been moved around for the centre console.

Gone is the old gear selector knob and in its place is a simplistic little nib gear shifter, thereby freeing up space in the shroud for storage bits and pieces. There’s a large upright phone holder for two devices (though only one slot is a wireless charger), dual cupholders, a large, lidded centre cubby, and twin USB-C ports.

Perhaps even more storage would have been useful by creating a lower-floor shelf like we’ve started to see from other manufacturers.

The sporty seats of the M Sport variant are very useful for keeping you snug and tight through corners – plus they offer plenty of adjustment to get the right position. There’s a gigantic panoramic glass roof over your head, afforded by the Enhancement Package, though it’s fixed. You can no longer open up the roof in a BMW X3 fitted with a sunroof.

Fit and finish of cabin panels and parts is good, but it seems like BMW has taken a backwards step in terms of presentation and interior materials. There are hard, black plastics gracing the door panels, and black door handles that not only feel low-rent, but they can be hard to spot too.

There’s some ambient lighting that’s configurable to your preferences, but it doesn’t go nearly as far as you’d find in an alternative like the Mercedes-Benz GLC.

The knitted textile covering the dashboard is an interesting point of contrast compared to the rest of the interior upholstery, but this is an optional extra costing $1200.

In the second row we’ve got a spacious and airy space thanks in no small part to the large panoramic roof. It is a shame that the seat base doesn’t slide to configure the cabin’s space, but this phenomenon isn’t exclusive to the BMW X3. Otherwise, the rear seat comfort was amenable enough for my 194cm height.

There’s a tri-zone climate control system that allows the rear seat occupants to program their own climate using a touch panel behind the centre console, plus heated seat controls and USB-C ports.

There are window blinds included on my tester, courtesy of the optional Comfort pack.

Total luggage capacity in the boot is labelled as 570 litres and this is accessed through a power-operating tailgate. The rear seats fold in a 60/40 format to afford 1700L in total storage space.

The brand-new BMW X3 inherits BMW’s latest infotainment arrangement that pairs a 14.9-inch central screen alongside a 12.3-inch driver’s display. They blend together seamlessly behind a single pane of glass for a suave look.

In front of the driver is a head-up display with customisable information, but there’s enough visibility of the driver’s cluster that it’s barely required.

The central screen is controlled through a traditional rotary dial, or you can simply touch the screen itself. Rather, there’s arguably too much content to the infotainment system for the rotary controller to be effective anyway.

I ended up running the majority of my week through wireless Apple CarPlay, which works really well. Also embedded within the system is wireless Android Auto, digital radio (DAB+), embedded satellite navigation, traffic and news updates, and app-based connectivity allowing remote access to vehicle check or remote locking and unlocking via a compatible smartphone.

There’s good adjustability of the main infotainment screen to view all the bits and pieces you’d like at a glance, while the digital cluster is also customisable to driver preferences.

I still don’t like the fact that the air-conditioning controls are handled through the infotainment screen, but at least there’s a hard-coded shortcut at the bottom of the display.

The BMW X3 has not yet been rated by ANCAP for safety credentials.

Included safety systems designed to prevent a crash entail emergency braking (AEB), lane-centring assistance, adaptive cruise control with stop-and-go, blind-spot monitoring, lane-keep assist, and rear and front cross-traffic alert.

Nicely, safety systems are deemed universal for all BMW X3 variants – unlike the Mercedes-Benz GLC range in which certain items are reserved for more expensive specifications.

In terms of its use, I’m a big fan of the way BMW makes all of these systems configurable. You can pretty easily dive into the settings and tweak a great deal of these measures, which makes for a happy driver. Compare and contrast some safety inclusions from newer manufacturers that can’t be changed at all.

There were no undue intrusions from the AEB or lane-keep assist tech, while the adaptive cruise control was easily one of the best I’ve used on Australian roads. It was smart to detect when the car ahead was accelerating or slowing, plus the lane-centring kept me squarely within my lane.

I also like the way you can soft-press the indicator stalk to signal the lane-centring system to change lanes itself.

Five years/unlimited kilometres is par for the course in terms of warranty for luxury vehicles, and the BMW X3 falls within this arrangement.

Maintenance is meant to take place on a “condition based” schedule, which means the car should tell you when it needs a service. BMW sells an upfront five-year (80,000km) service plan that costs $2475.

This is comparable with a Range Rover Velar P400 ($2450), but is far cheaper than a Mercedes-Benz GLC200 ($7350).

Annually, the cost of insuring an X3 20 xDrive will be approximately $3003, which is more expensive than its nearest rivals. It will cost you $2697 to insure an Audi Q5 45 TFSI and $2292 to insure the Mercedes-Benz GLC300, for example.

The BMW X3 20 xDrive features the least powerful engine in the X3 line-up, but it’s not the most frugal – that accolade goes to the plug-in hybrid X3 30e xDrive that returns just 1.7 litres per 100 kilometres, according to the manufacturer.

BMW says the X3 20 xDrive will churn through 7.5L/100km on a mixed driving cycle with varied road conditions and speeds. By the time I’d spent my week with the X3, I saw an indication of 8.2L/100km.

It’s evident that although the BMW uses mild-hybrid technology to save on fuel and provide an extra power boost, perhaps it’s really meant for the latter rather than the former.

The BMW X3, in its most affordable guise, still produces all the typical hallmarks that make a BMW the sportier choice.

Compared to a rival like the Mercedes-Benz GLC, the X3 changes direction quicker, dispatches mid-corner bumps easier, and comes with a more feelsome steering system that relays good information about the all-wheel-drive system underneath.

Conversely, it’s not as comfortable to live with around town. It’s not as deft at absorbing impacts such as speed humps and feels generally more taut. That’s not to say it’s uncomfortable, but it’s worth a test drive before signing on the dotted line.

The 2.0-litre turbocharged four-cylinder engine outputs 140kW/310Nm, which is ample for the everyday journey, but I’d prefer a smidge more oomph for touring scenarios and when driving out on the open road.

I did appreciate the high degree of visibility out of the cabin – the X3 has a tall glasshouse that is easy to see out of in all directions – while the light steering efforts make the car a breeze to park in tight spots.

Likewise, the seating position is comfortable and cocooned, and you’ve got a nice perch with good adjustability.

There’s very little road noise that permeates the cabin, which is par for the course in a luxury SUV, but it’s a nice setting nonetheless. It’s only you, your passengers, and whatever you’re listening to on the radio.

BMW rates the X3’s towing ability up to 2200kg using a braked trailer. While the brand offers a tow pack, we didn’t do any load-lugging with our tester in the week it was on test.

In any case, an X3 is not the ultimate option from the brand when it comes to towing. A BMW X5 or an X7 is arguably a better option if you regularly tow with your car.

The X3 20 xDrive comes with a 645kg payload, which is more than enough for five adults on board, including luggage.

There’s little doubt that the new-generation BMW X3 addresses some of the shortcomings of its predecessor. The technology is far improved, there are more features to play with, and the vehicle’s design – inside and out – has enjoyed a much-needed refresh.

However, it’s also taken some steps backward. It’s a shame to see some poor materials used in the first row, and the value equation will have some would-be buyers looking sideways at other marques such as Mercedes-Benz or Lexus.

The driving experience is still a standout, especially if you value sportiness. It’s dynamic, easily manoeuvrable in town, and is plainly fun to drive when further afield.

If you’re coming from the previous-generation BMW X3, the leap might not be as great as anticipated, but the X3 continues to carve out its own niche worthy of cross-shopping when buying in the luxury SUV segment.