The BMW X3 helped kickstart the compact luxury crossover segment when it debuted back in 2004 and went on to become the maker’s bestselling model. The new, fourth-gen 2025 X3 builds on that solid record of success with incremental updates and improvements that refine the breed rather than reinvent it. All-wheel drive is standard for 2025, and the performance-focused M40i is replaced by the M50. (Notably, BMW drops the “i” from the model names of its gas-powered vehicles going forward, reserving the letter for use exclusively on its EVs.) BMW cautiously mixes in fresh tech as well, including more audio and video streaming services as well as some gaming options for fun when parked. The four and inline-six-cylinder powertrains return, but both get a mild hybrid component and a small increase in output. The fully electric iX3 will arrive later built on an entirely different platform and will exist alongside the new X3. A plug-in hybrid isn’t yet confirmed for the American market, but we’d be surprised if it doesn’t join the lineup given America’s renewed interest in hybrids of all stripes. What doesn’t change is the X3’s tasteful luxury appointments, refined ride-handling balance, and its position as a stylish, right-sized compact crossover in one of the hottest segments. As one of our favorites in its segment, the BMW X3 has earned a spot on our Editors’ Choice list for 2025.
Almost everything. Larger overall, the fourth-generation 2025 X3 benefits from a revised exterior design and chassis, tweaked powertrains, and updated infotainment and driver-assist features. Notably, all-wheel drive is now standard, eliminating the sDrive trim, and the M50 replaces the previous M40i. With BMW dropping the “i” from the model names of its gas-powered vehicles, reserving the letter for use exclusively on its EVs, the 2025 models are known as the X3 30 xDrive and the X3 M50. The 2025 X3’s driver-assist systems add a bunch of new comfort- and safety-enhancing tricks including automated lane change, adaptive cruise control with traffic-light recognition, and parking assistant. There’s also a new available Parking Assistant Professional Package that lets the car park itself in a predesignated parking space that’s been saved in the vehicle’s computers—think your assigned spot in a parking lot or garage—even while you are outside of the vehicle.
The price of the 2025 BMW X3 starts at $51,125 and goes up to $65,875 depending on the trim and options.
Considering the nearly $15k gap, we think the 30 xDrive represents the best value. Yes, the 2025 M50’s 393-hp inline-six ensures a more genuine BMW experience, and for some drivers, the $65,275 price tag is just the cost of doing BMW business.
The turbocharged 2.0-liter four-cylinder in the 30 xDrive is boosted by a 48-volt hybrid system and makes 255 horsepower. The M50 is the real performer though, as its turbocharged 3.0-liter inline-six gets the same hybridization system and a 393-hp rating. Both employ an eight-speed automatic transmission and all-wheel drive. When we drove the 2025 X3, we found that it builds on the previous-generation model’s already good road manners with a stiffer body structure and revised suspension. Speaking of which, an adaptive suspension is standard on the M50 and can be ordered as an option on the 30 xDrive. Three drive modes, Personal, Efficient, and Sport, are provided to tailor responses to the driver’s needs. An optional trailer hitch allows the X3 to tow up to 4850 pounds.
While we haven’t tested the 2025 X3 yet, BMW is claiming a 6.0-second 60-mph-time for the new model. That should help the X3 narrow the gap between it and the Porsche Macan S and the Audi Q5. The X3 M50’s 393 horsepower should put it within a tenth or two of the outgoing M40i’s 4.1-second time. Top speed for the 30 xDrive is 130 mph; the xDrive M50 tops out at 155 mph when equipped with the performance tires.
The EPA has rated the BMW X3 30 xDrive at 27 mpg city and 33 mpg highway. The hotter X3 M50 is rated at 25 mpg city and 30 mpg highway. We haven’t yet tested the 2025 BMW X3 on our 75-mph real-world fuel economy loop, but we’ll report back once we have. For more information about the X3’s fuel economy, visit the EPA’s website.
Standard equipment includes new heated and ventilated power-adjustable sport seats with three available color choices for the faux-leather upholstery. There’s also an optional faux leather and faux suede combination available, as well as genuine leather. A woven fabric instrument panel made from recycled polyester is also on offer, marking its first use on any BMW product. BMW claims that there is 10 percent more rear cargo space than the outgoing model, with the new X3 offering 32 cubic feet with the seats up.
BMW’s latest iDrive 9 infotainment system makes its debut in the X3, and the iDrive rotary knob remains in place—a nice surprise considering its conspicuous absence on the recently refreshed X1 and X2 models. The system also accepts inputs via the touchscreen, steering wheel controls, and voice commands. A head-up display is optional. BMW Digital Premium allows for video streaming and gaming options when the vehicle is stopped, the latter in single- or dual-player modes. Spotify and Amazon Music join the X3’s list of audio streaming services.
