2025 BMW X3: World Car of the Year Runner-Up is Full of Goodness
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How much of a success was the redesign of the BMW X3 for 2025? Well, enough to earn a spot among the top three finalists for the World Car of the Year Award. Definitely, this fourth generation of the German luxury compact SUV (built in the U.S., remember) remains one of the benchmarks in the segment, especially in terms of driving dynamics, performance and technology.
In terms of styling, BMW has once again made a bold move at the risk of polarizing customers. Slightly bulkier and stockier, the new X3 has lost some of its curves and appears to be chiseled out of rock. It looks sharp from certain angles, less so from others, but is certainly not lacking in character. Then there's the obvious influence of electric models, for example with the closed double-kidney grille, the flush-mounted door handles and the visually missing tailpipes (at least in base 30 xDrive trim).
- Also: BMW’s Next-Gen Electric SUV to Be Called iX3, Here’s When It’ll Debut
- Also: This Humanoid Robot Might Build Your Next BMW
BMW continues to offer a wide array of options and packages to liven up the exterior of the X3 or give it a sportier appearance. However, stop looking for its coupe-like twin, the X4, as the company has opted not to renew it.
Refreshing, Cutting-Edge Interior
The 2025 BMW X3 puts occupants in a refreshingly modern and high-tech environment that seemingly borrows both from the new generation of MINI cars (owned by BMW) and from the automaker’s upcoming Neue Klasse, which will be spearheaded by the all-electric 2026 BMW iX3. Quality and originality define the cabin, highlighted by a curved digital interface complete with an interactive bar on the dashboard, prominent ambient lighting, a hexagonal steering wheel on base models and optional grey knit upholstery made from recycled polyester.
The very attractive and advanced new iDrive 9 infotainment system isn't the simplest (some of the HVAC controls come to mind), but the shortcuts always accessible at the bottom of the touchscreen, the large rotary controller and buttons that remain on the centre console (unlike the latest X1 and X2), as well as the voice and steering wheel controls provide many different ways to interact with it and adjust vehicle functions. More solutions the better, right? The 360-degree surround view system comes in handy, too, although the rear-view camera's fish-eye image isn't much help.
We love the beautifully sculpted sports seats with their adjustable side bolsters. They ensure remarkable support, and while some people might prefer them to be a little less firm, comfort is still adequate. Overall space is ideally suited for a family. Adults sitting in the rear have ample headroom, but legroom and shoulder room can be tight. As for cargo, the new X3 is able to fit anywhere between 892-1,900 litres, which is among the segment’s best. The practical 40/20/40-split rear seat is a bonus. Need to haul more stuff? Maximum towing capacity remains at 4,000 lbs in base trim, but increases to 4,850 lbs in M50 xDrive trim.
Extra Muscle FTW
For 2025, BMW engineers have toned up the two main engines. The turbocharged 2.0-litre four-cylinder (as tested) now develops 255 hp (+7) and 295 lb-ft of torque (+37), enough to accelerate from 0-100 km/h in 6.3 seconds, and is part of a mild hybrid system with a 48-volt battery that optimizes its performance and efficiency. Turbo lag is still present, but it's a pleasant engine to operate and arguably satisfying for most drivers, especially as the eight-speed automatic transmission is expertly matched and doesn't tend to hesitate at low speeds like similar units.
Sport mode makes the X3 considerably more responsive, except that activation requires finding the tiny button on the console and then pressing the touchscreen. What’s up with that? There's also an Efficient mode, which we briefly used. In the end, fuel consumption settled at 8.8 L/100 km without any real effort to save some of the precious premium gasoline BMW recommends. Keep in mind the vehicle still had winter tires on and we spent roughly 60 percent of our time driving around town. The official combined rating for the X3 30 xDrive is 8.1 L/100 km.
Both X3 models boast noticeable improvements in agility, cornering stability and long-distance comfort. A body-in-white with lower weight and increased rigidity, wider rear track and revised suspension play key roles here. The latter is stiffer than most, so we were glad our tester came with the smallest wheels available (19 inches) when driving on bumpy roads. Steering has a really nice feel and great feedback, while the brakes are strong yet easy to modulate.
An adaptive M suspension is available on the sportier X3 M50 xDrive, which has larger alloys and that lovely turbocharged 3.0-litre six-cylinder engine. Power has increased from 382 to 393 hp and torque from 369 to 428 lb-ft, but due to the extra weight for 2025, 0-100 km/h sprints are a tenth slower at 4.6 seconds. At the time of writing, BMW had yet to announce the return of the plug-in hybrid variant or the almighty X3 M Competition.
Our Verdict
The 2025 BMW X3 starts at $58,900 in 30 xDrive trim, up $2,200 from 2024, and at $74,900 in M50 xDrive trim—excluding the various fees, numerous options, taxes and any applicable import tariffs. The evolution of Germany's American-made compact SUV is a bold one, and while the exterior may not charm everyone, the interior surely will. The X3 remains a benchmark for driving pleasure and performance. It’s more dependable than you may think, too.
Still, before making your final decision, we strongly recommend taking a look at the fully redesigned Audi Q5, the Canadian-built Lexus NX and/or the Genesis GV70 that our team at The Car Guide picked as a Best Buy for 2025.
