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The BMW X3 has been a staple in the compact luxury crossover segment since its debut in 2004. The latest 2025 model continues to build on its success with incremental updates and improvements. One of the significant changes for 2025 is that all-wheel drive is now standard, and the M40i has been replaced by the M50.

During our test drive of the 2025 X3 prototypes, we noticed that the new model is larger in size but has a lower drag coefficient, thanks to its more aerodynamic bodywork. BMW has also introduced new tech features, such as more audio and video streaming services and gaming options for entertainment while parked.

The 2025 X3 will come with both four and inline-six-cylinder powertrains, both of which have been upgraded with a mild hybrid component for increased output. While the fully electric iX3 will be released later on a different platform, there is no confirmation yet for a plug-in hybrid for the American market.

In terms of pricing, the 2025 BMW X3 starts at $50,675 and goes up to $65,275, depending on the trim and options. The 30 xDrive model is seen as the best value, while the M50 offers a more powerful inline-six engine for a higher price.

The turbocharged 2.0-liter four-cylinder in the 30 xDrive model is boosted by a 48-volt hybrid system and produces 255 horsepower. The M50, on the other hand, has a turbocharged 3.0-liter inline-six engine with a 393-hp rating. Both models come with an eight-speed automatic transmission and all-wheel drive.

Although we have not tested the 2025 X3 yet, BMW claims a 6.0-second 0-60 mph time for the new model. The M50’s 393 horsepower is expected to bring it close to the outgoing M40i’s 4.1-second time. Additionally, the X3 offers a maximum towing capacity of up to 4850 pounds.

While the EPA has not released official fuel economy numbers for the 2025 X3, we hope that the hybridization and engine tweaks will improve on the previous model’s fuel efficiency. The interior of the 2025 X3 features new heated and ventilated power-adjustable sport seats with various upholstery options.

The X3 debuts BMW’s latest iDrive 9 infotainment system, allowing for various input methods, including touchscreen, steering wheel controls, and voice commands. Safety features include automated emergency braking, lane-departure warning, and available adaptive cruise control.

Overall, the 2025 BMW X3 offers a blend of luxury, performance, and technology enhancements that make it a strong contender in the compact luxury crossover segment. With its updated features and improved performance, the 2025 X3 is sure to appeal to a wide range of buyers looking for a stylish and capable vehicle.