It’s some time ago now, and as such, it’s easy to forget, but BMW effectively reinvented the SUV segment with the original X5 – delivering car-like driving dynamics and genuine driver engagement where other manufacturers could not. Ever since, the SUV race has been on in earnest, and as we know, every manufacturer wants a piece of the action. 

And when a brand like BMW lives and dies by the ‘ultimate driving machine’ tag, it’s even harder to understand our rampant love for SUVs. BMW SUV sales are now around the 60 per cent mark of total sales volume, and that from a brand that executes some of the best sedans and wagons you will ever drive. 

Australian buyers have been lapping SUVs up, regardless of manufacturer then, another point that hasn’t gone unnoticed, and in general, we opt for the most expensive variant at a rate that outstrips the rest of the world’s developed markets in terms of percentage. A BMW with an M badge, a Mercedes-Benz with an AMG badge, or an Audi with an S or RS badge, Aussie buyers simple cannot get enough of them. 

That’s why it’s hardly surprising when BMW Australia tells us at the 2025 BMW X3 launch that current buyer interest across the three-model range is split effectively evenly, making the sales leader hard to predict from launch.

On that point, our first pricing story details the two mild-hybrid variants, while an addition to the range came later in the form of the PHEV X3. On face value, you might think the PHEV is the most appealing to the most buyers, but the range-topping M50 xDrive is getting plenty of pre-purchase attention.

First up, we reported that the X3 20 xDrive and M50 xDrive would make up the range, but we added the news that the PHEV 30e xDrive would be joining the range some time later, making for the three-model range that is positioned well in terms of standard equipment and pricing to appeal to the target buyer. 

The range opens with the 20 xDrive, which starts from $86,100 before on-road costs. Next up is the 30e xDrive, which starts from $104,100 before on-road costs, while the M50 xDrive starts from $128,900 before on-road costs.

Since prices were first announced, RRP have risen slightly, up from $84,500 for the 20 xDrive, $102,500 for the 30e xDrive, and $126,900 for the M50 xDrive.

The most affordable X3 gets four-cylinder mild-hybrid technology, then there’s the step up to four-cylinder plug-in hybrid technology, while the M50 gets six-cylinder mild-hybrid power. The feature point in regard to pricing is the hefty $9300 drop in the starting RRP for the PHEV compared to the old model, based on initial pricing.

Performance is sharp across the range too, with even the 20 xDrive making 140kW and 310Nm for an 8.5-second run to 100km/h. The 30e xDrive makes 220kW and 450Nm and shaves 2.3 seconds off that 0–100km/h time for 6.2 seconds. Adding an M badge gets you a chunky 293kW and 580Nm and just 4.6 seconds to 100km/h.

While traditional thinking might have had multiple models, variants, and grades, it seems to me that a less complex approach makes the buying decision easier. 

BMW’s styling has polarised of late, and I’m not sure whether the X3 has grown into the grille, or the grille has softened a little in shape and style. Or, maybe we’ve grown used to it. I’m really not sure what the answer is, but the X3 doesn’t look anywhere near as 'love it or hate it' to me as previous BMWs might have. I think the styling settles pretty neatly into what is a fairly conservative segment, while still being unashamedly a BMW. 

We’ll test all three more closely post launch as they cycle through the Drive garage, but on the compact launch experience, my interest is largely in the plug-in hybrid, with its sensible electric-only range and therefore day-to-day practicality.

As we’ve seen from other manufacturers, the strong points of a PHEV stand out – that is the use of little or no fuel Monday to Friday, but the security of a conventional motor for less frequent, longer drives. 

The PHEV X3 gets a 19.7kWh battery pack that is claimed to deliver up to 91km of pure electric driving based on local testing. The WLTP test claims 81–90km. With a fully charged battery pack, and a section of highway running, we get 80km in the real world at launch, and I reckon 90km would be achievable in stop/start city traffic.

Most city and urban dwellers in this country, though, as we know, cover less than 90km each day getting to and from work, so the range seems useful. The 11kW AC charging means you can charge the battery back to full in two hours and 15 minutes once you’re back home.

BMW claims 1.6 litres per 100 kilometres on the combined cycle, but that does of course assume you’re doing much of that 100km test on battery power. 

Standard equipment is extensive, regardless of model, but as you’d expect of the PHEV, there’s more to entice buyers. For example, the Comfort Package – a $4000 option on the most affordable X3 – is standard, as is the panoramic glass roof.

Even the 20 xDrive gets 19-inch alloy wheels, adaptive LED headlights, 14.9-inch infotainment touchscreen, wireless smartphone connectivity, 12.3-inch digital instrument cluster, three-zone climate control, wireless phone charging, powered tailgate and power-adjustable heated front seats. Our pricing and specification story details the full list. 

The new BMW X3 is bigger – such is the way of the automotive world – and it feels it inside the cabin, where space is excellent. Up front, or in the second row, there’s room for four adults to tour in comfort, and the boot is useful too, with room for medium-sized suitcases to be hidden out of sight.

Visibility from the driver’s seat is as you’d expect, and the X3 settles into a relaxed cruise on any road with ease. Family buyers looking at this segment will enjoy the way the X3 effortlessly gets to work, regardless of the type of driving you’re doing. 

The cabin is quiet, nicely insulated from the world outside, and comfortable. Even sections of course chip, choppy, rural bitumen couldn’t unsettle the cabin comfort. You need to hit a really nasty pothole or rut in the road for it to register through the wheel or the seats, but the bump absorption is generally first rate. 

Apple CarPlay worked faultlessly for us on test, with the mapping/road trip app we used syncing nicely with the infotainment system. While wireless charging is available, I’d prefer to stick with the cabled connection, ensuring my phone doesn’t get hot, although BMW reps did remind us there’s a cooling function built into the wireless pad – clever. 

The PHEV feels more than punchy enough and you don’t really ‘need’ the extra grunt afforded by the desirable M badge. The plug-in gets up to speed quickly and maintains it effortlessly, and there’s always power in reserve if you need it.

On that subject, even the diminutive four-cylinder mild hybrid gets the daily driving job done easily, without feeling like it needs to be thrashed. A short drive at launch illustrated the effortless nature of this powertrain, and the fact that those of you who can’t stretch the budget to the more expensive variants won’t feel like you’re missing out. 

Get behind the wheel of the M50 xDrive and you’re in a genuinely fast SUV. Its 293kW and 580Nm – with BMW's peak figure inclusive of a 13kW boost from the mild-hybrid system – are serious numbers even in the sports car world, and as such, the M50 has a turn of pace not required to adhere to Australia’s draconian speed limits. You’ll need to be concentrating on that right foot if you want to keep your licence intact in the M50, put it that way. 

More comprehensive testing awaits, post launch, but even a compacted launch drive reveals the inherent qualities of the new BMW X3. For mine, if the budget allowed, I’d look at the PHEV. That said, buyers of the base model will still get a quality medium luxury SUV, and if you want the punch on offer from the M model, that’s a cracker too.

It will be fascinating to see where the sales mix ends up after a few months on sale. Let us know your predictions in the comments section below.