The whole point of a crossover is to blend the all-weather traction and additional utility of a traditional SUV with the driving dynamics and efficiency of a car. In the compact luxury SUV segment, the 2026 BMW X3 is a shining example of what a crossover should be.
Photo: Christian Wardlaw
BMW covers the SUV part of the equation with standard all-wheel drive (AWD), 8.5 inches of maximum ground clearance, and up to 4,850 pounds of towing capacity. At the same time, it offers as much as 393 horsepower, acceleration to 60 mph as quickly as 4.4 seconds, and up to 29 mpg in combined driving. Add easy entry and exit to the cabin, seating for up to five people, and a cargo area that expands to 67.1 cubic feet, and the 2026 X3 is the epitome of modern crossovers.
It comes in two flavors for 2026: the X3 30 xDrive with Sport or M Sport trim and the X3 M50 with standard M Sport fittings. Prices range from $60,500 to $67,850, including the destination charge.
For this 2026 X3 review, BMW provided an M50 xDrive test vehicle equipped with the following options:
The Premium package equips the X3 with:
The Driving Assistance Professional package adds:
The test vehicle’s manufacturer suggested retail price (MSRP) was $79,100, including the $1,350 destination charge to ship the SUV from the Spartanburg, South Carolina, assembly plant to a local dealership. The price does not reflect any current rebates, incentives, or price adjustments since BMW manufactured the test vehicle.
Photo: Christian Wardlaw
For 25 years, BMW design has stirred controversy, and the latest X3 is no exception. Some people will love it, some will not, and the rest will decide if they can live with it. I happen to like it. Mostly.
The interior is another story. It looks and feels industrial instead of luxurious, and given my test vehicle’s sticker price, the inexpensive plastics and unlined storage areas are unacceptable. However, the ambient lighting for the BMW Interaction Bar and door panels, the available Merino leather upholstery, and the BMW Curved Display help to make up for it.
Though the X3 offers good ground clearance for a crossover, getting in and out is easy. Power-adjustable, heated sport seats are standard in the front and offer impressive comfort over long distances. Veganza upholstery is standard, which is BMW’s vegan synthetic leather. It is a convincingly upscale material, but the optional leather is also delightful if it does not offend your sensibilities. Front seat ventilation is a stand-alone option.
When BMW redesigned the X3 in 2025, it eliminated many of the previous model’s switchgear in favor of touch-sensing controls grouped into a few panels. The result is an austere cabin that can be frustrating to use at times.
The back seat is also comfortable, if snug for taller people. My shins rested on the hard plastic surrounds of the seatback storage nets, which was unpleasant. I also thought the seat was mounted too low. Nevertheless, the cushion’s shape provided a little bit of thigh support.
Storage space is surprisingly good for a German SUV. Unfortunately, many of the spots where you can stash stuff lack a liner, so items placed there can create unwanted noise, vibration, and harshness.
Cargo space behind the back seat measures 31.5 cubic feet, with about 60 percent of it available underneath a robust cargo cover. I was able to slide a full-size suitcase into the X3, with the luggage tipped on its side. That suggests three or four of them will fit. If you fold the 40/20/40 split back seat down and remove the cargo cover, the X3 carries a maximum of 67.1 cubic feet of cargo.
Photo: Christian Wardlaw
The X3’s BMW Curved Display contains a 12.3-inch digital driver display and a 14.9-inch touchscreen infotainment system. The technology runs on BMW Operating System 9 with QuickSelect, which is the company’s latest software.
The infotainment highlights include:
Additionally, the test vehicle featured a head-up display, a 15-speaker Harman Kardon surround-sound system, and wireless smartphone charging.
Via BMW ID, owners can program different driver profiles and save them to the key fob or a smartphone digital key. You sign in using an email address and password, or by scanning a QR code and the My BMW smartphone app.
Because I did not own the X3, I did not have a valid BMW ID, so my choices were Guest or a pre-configured Driver profile. To alter the Driver profile, which inexplicably turned both the seat heaters and seat ventilation on at full blast with each re-start, the X3 asked me to sign in. I switched to Guest, but that mode did not save my vehicle settings and preferences upon engine restart. That was a hassle, but it should not be a problem for an owner with an active BMW ID profile.
Unfortunately, the test vehicle’s BMW Intelligent Assistant was inoperative. It did not respond to “Hey, BMW,” and pushing the “talk” button on the steering wheel did not awaken the assistant. Therefore, I could not perform a voice recognition test to determine how effective the technology is.
Due to these irritations, I used the wireless Apple CarPlay feature most of the time. It worked well, except for the time I got into the X3, turned it on, and Apple Music started playing through my smartphone speaker instead of the excellent Harman Kardon speakers.
QuickSelect makes the deep, broad infotainment menus easier to navigate. Still, it can be overwhelming, and it is easy to forget where a feature or setting is.
Overall, my experience with BMW OS 9 was unsatisfying. Still, I give the technology the benefit of the doubt because I think owners who take the time to properly activate their BMW IDs and set up profiles will enjoy it more than I did. And if they do not, there is always Apple CarPlay and Android Auto.
Photo: Christian Wardlaw
BMW equips the X3 30 xDrive with a turbocharged four-cylinder engine producing 255 horsepower and 295 pound-feet of torque. An eight-speed automatic transmission delivers power to all four wheels through the company’s xDrive AWD system, and 48-volt mild hybrid technology helps improve gas mileage. Based on my previous experience with this model, this is a satisfying setup. BMW says the X3 30 xDrive accelerates to 60 mph in 6 seconds, and the Environmental Protection Agency (EPA) fuel-economy rating is 29 mpg in combined driving.
My X3 M50 test vehicle boasted significantly more power from a turbocharged 3.0-liter inline-six-cylinder engine, whipping up 393 hp and 428 pound-feet of torque. Like the base X3, it uses an eight-speed automatic, xDrive, and 48-volt mild hybrid technology. However, it also gets an M Sport rear differential, variable sport steering, M Sport brakes, and an Adaptive M suspension. This version of the X3 arrives at 60 mph in a claimed 4.4 seconds while averaging 27 mpg in combined driving. The test vehicle returned 24.1 mpg on the evaluation loop.
If you are familiar with the X3 30 xDrive, the X3 M50 feels faster, firmer, and more flingable from the first push of the accelerator pedal. In typical driving situations, that translates into a stiff, sometimes choppy ride and some undesirable head toss. But if you buy the M50 for its performance, those traits are to be expected. And if thrilling acceleration and handling are what you seek, this version of the X3 delivers.
In an era where many electric vehicles (EVs) can easily dust an X3 M50, I would still rather drive the BMW. Where EVs can feel anesthetic except for how deeply they are pushing you into the seat, the X3 M50 is visceral, blending its speed with sound and sensation. Found a hole in traffic? It’s all yours. Need to pass? Just push down with your right foot. Feel like taking the long way home? Take that twisty road.
There are a few other downsides to the M50. The M Sport brakes are a little sticky in traffic, making it hard to bring the SUV to a smooth, clean, limo stop. But they resist fading under duress. There is a Sport+ mode to access maximum performance, but it turns off the stability control system, which is a bad idea on public roads.
Then there is the price tag. I am a fan of the X3 30 xDrive, which you can enhance with some of the M50’s performance upgrades. It is not as fast or outright capable as the M50, but it is a lot easier on your wallet and is plenty of fun to drive. You might want to test-drive that one before trying the addictive M50. After experiencing that version’s turbo six, there might be no going back.
Photo: Christian Wardlaw
BMW equips every 2026 X3 with Driving Assistant. This standard package of advanced driving assistance systems (ADAS) includes:
To that, the Premium Package adds:
My test vehicle also had the Driving Assistance Professional package. There is some overlap with the Premium package in case you choose one but not the other:
Overall, the X3’s ADAS is capable and performs as expected. However, I encountered a significant glitch that nearly caused an accident.
While using the adaptive cruise control and lane centering assistance systems on the Pacific Coast Highway, the X3 began rounding a bend in the road. Two cyclists were safely traveling in the bike lane. As the BMW approached them, the technology mistook them for an obstacle and suddenly braked hard. This action took the person driving behind the X3 in a vintage Corvette by surprise, and when he had an opportunity to pass, he was clearly unhappy about it.
Later, as traffic thickened, speeds dipped below 40 mph, prompting an invitation to use the hands-free traffic jam assist system. In the SUV, it is called Assisted Driving Plus. When you see the notification on the driver display or the head-up display, simply remove your hands from the steering wheel, and the system will take over. Green lights illuminate on the steering wheel to confirm it is active. The hands-free system worked smoothly and reliably during the evaluation.
In crash tests, the National Highway Traffic Safety Administration (NHTSA) gave the X3 a four-star (out of five) overall rating. The BMW received four-star driver and passenger frontal-impact protection ratings, five-star side impact protection ratings, and a four-star rollover-resistance rating.
Results from Insurance Institute for Highway Safety (IIHS) testing are more favorable. The 2026 X3 earned a Top Safety Pick+ rating for the 2025 calendar year.
According to the JD Power 2025 Initial Quality Study (IQS), the Acura RDX ranks highest in the Compact Premium SUV segment. The Lexus NX and the BMW X4 are the next highest-ranked models.
According to the JD Power 2025 Automotive Performance, Execution and Layout (APEAL) Study, the BMW X4 ranks highest in the Compact Premium SUV segment. The Porsche Macan and the Jaguar F-Pace are the next highest-ranked models.
Other 2026 X3 competitors include the Audi Q5, Genesis GV70, and Mercedes-Benz GLC.
The 2026 BMW X3 has a sense of style in a segment that is often bland. The vehicle is roomy and comfortable, and is rewarding to drive with either of its available engines.
My issues with the BMW Operating System 9 and BMW ID are unlikely to affect owners who set up this technology correctly. But identifying cyclists in a bike lane as an obstacle, followed by unexpected braking with traffic following close behind, was a significant ADAS hallucination that seriously dents confidence in the driver-assistance technology.
If not for my disappointing experiences with the X3’s technology, I could easily recommend this BMW to anyone shopping for a compact luxury crossover SUV. Nevertheless, if you love to drive, I would suggest getting one. Just leave the adaptive cruise turned off.
Christian Wardlaw is a veteran automotive journalist with 30 years of experience in the field and has held automotive editorial leadership positions at Edmunds, JD Power, and The New York Daily News. Today, Chris owns a content agency called Speedy Daddy Media, and in addition to JDPower.com, his work appears on Capital One Auto Navigator, CarGurus, and Edmunds.
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