BMW X3 : In a strategic move that underscores the continued relevance of diesel power in Australia’s premium SUV market, BMW has officially confirmed the addition of the X3 40d xDrive to its fourth-generation X3 lineup.
This powerful new diesel variant is set to arrive in Australian showrooms in the third quarter of 2025, expanding the X3 range to four distinct models and offering luxury SUV buyers a compelling alternative to the existing petrol and hybrid options.
A Powerful Addition to the Family
The introduction of the X3 40d xDrive isn’t just another variant—it represents BMW Australia’s commitment to providing diverse powertrain options to meet the varied needs of luxury SUV customers.
The new diesel model will be positioned strategically in the lineup at $108,900 before on-road costs, sitting below the high-performance M50 xDrive and above both the entry-level 20 xDrive and the plug-in hybrid 30e xDrive.
What truly sets this new addition apart is its formidable powerplant. The X3 40d xDrive features a sophisticated 3.0-liter inline six-cylinder turbo-diesel engine paired with 48-volt mild-hybrid technology.
This combination delivers impressive performance figures: 210kW of power and a substantial 670Nm of torque—representing significant increases of 15kW and 50Nm over the previous generation’s xDrive30d model.
These power improvements translate directly to enhanced on-road performance, with BMW claiming a 0-100km/h acceleration time of just 5.4 seconds—making it 0.4 seconds quicker than its predecessor.
Combined with a top speed of 245km/h, the X3 40d xDrive promises to deliver the perfect blend of effortless cruising ability and responsive acceleration that discerning diesel enthusiasts have come to expect from BMW’s six-cylinder oil-burners.
Efficiency Without Compromise
While performance is certainly a highlight, the X3 40d xDrive doesn’t compromise on efficiency.
According to BMW’s figures, this potent diesel SUV consumes a claimed average of just 6.7L/100km on the WLTP cycle—an impressive figure for a vehicle of this size and performance capability.
Like all variants in the Australian X3 range, the 40d xDrive sends power to all four wheels via BMW’s renowned xDrive all-wheel-drive system and a refined eight-speed automatic transmission.
This drivetrain configuration ensures optimum traction in varied driving conditions while maintaining the balanced driving dynamics that have become a hallmark of BMW’s X models.
Premium Equipment to Match the Performance
Beyond its impressive powerplant, the X3 40d xDrive will come comprehensively equipped to justify its premium positioning.
Standard specification matches that of the 30e xDrive plug-in hybrid, including the M Sport Package that adds performance-oriented styling elements and dynamic enhancements.
The exterior is complemented by 20-inch M light alloy wheels, adaptive LED headlights, and BMW’s distinctive Iconic Glow illuminated double kidney grille—features that emphasize the vehicle’s premium status and sporting character.
Inside, occupants are treated to the latest in BMW’s technology and comfort offerings.
The centerpiece is a curved display that integrates a 12.3-inch digital instrument cluster and a 14.9-inch touchscreen infotainment system running BMW’s latest Android-based Operating System 9.
This state-of-the-art interface allows intuitive control of the vehicle’s numerous functions and connected services.
Additional premium features include three-zone climate control, wireless smartphone integration, and the comprehensive Driving Assistant Professional package.
A comfort package also comes standard, featuring luxuries such as ventilated front seats, a heated steering wheel, and manual rear sun blinds—amenities that enhance the everyday usability and comfort of this premium SUV.
Staying the Course While Others Retreat
BMW’s decision to introduce a new diesel variant to its X3 range comes at an interesting time in the Australian automotive landscape.
While many manufacturers are gradually phasing out diesel options in favor of electric or hybrid powertrains, BMW has chosen to maintain diesel as a core offering, particularly in its larger SUV models.
According to Daniel Silverwood, BMW’s X Series product and pricing manager, this strategy reflects a nuanced approach to the changing market: “We haven’t shut the door on diesel.
Towards the end of the lifecycle of the outgoing X3, the percentage that were sold in diesel had reduced. However, with that said, there may still be a role going forward; that’s something we’re currently assessing.”
This perspective aligns with BMW’s broader powertrain strategy in Australia, which includes offering diesel options in its larger X5, X6, and X7 SUVs while prioritizing electric and hybrid options in smaller models.
The company recently introduced the 540d xDrive, which shares the same 3.0-liter inline-six turbo-diesel mild-hybrid engine as the new X3 40d xDrive—further demonstrating BMW’s continued commitment to advanced diesel technology.
Market Context and Consumer Choice
The introduction of the X3 40d xDrive comes against a backdrop of evolving trends in the Australian automotive market. In 2024, diesel-powered passenger vehicles, SUVs, and light commercial vehicles accounted for 369,842 sales—a modest decline of 2.5 percent year-on-year.
While petrol vehicles still dominated with 528,978 sales (though down 10.1 percent), alternative powertrains showed significant growth, with hybrid sales up 76 percent, plug-in hybrids up 100.2 percent, and electric vehicles up 4.7 percent.
BMW’s decision to expand its diesel offerings in this context represents a calculated bet that a significant segment of premium SUV buyers still values the long-range cruising ability, effortless torque, and highway efficiency that modern diesel engines provide—particularly in larger vehicles where these attributes are most appreciated.
By offering the X3 with petrol, plug-in hybrid, and now diesel options (alongside the all-electric iX3 that will continue until its replacement by a new EV model line later in 2025), BMW is essentially doubling down on its “power of choice” philosophy—giving customers the freedom to select the powertrain that best suits their specific needs and preferences.
The Fourth-Generation X3: A Comprehensive Refresh
The addition of the diesel variant comes as part of BMW’s comprehensive refresh of the X3 lineup with the fourth-generation model.
While not a complete ground-up redesign—it shares its CLAR platform, 2865mm wheelbase, and core drivetrains with the previous G01 generation—the new G45 X3 brings significant updates in several key areas.
Visually, the new X3 is distinctively BMW but with a fresh interpretation of the brand’s design language. It features expansive surfaces and dramatic curves that lend it a more substantial presence on the road.
The front end is dominated by the reimagined kidney grille with contoured lighting, while the side profile reveals a vehicle that is longer between the bumpers, wider, and slightly lower than its predecessor.
The chassis has also received attention, with BMW engineers broadening the tracks (by 16mm at the front and 45mm at the rear), honing the suspension geometry, revising the steering hardware, and fitting adaptive dampers as standard on all Australian-specification models.
These changes are aimed at enhancing the X3’s already strong dynamic abilities, with the goal of making it the world’s best-driving medium SUV.
Inside, the cabin has been thoroughly modernized with a minimalist approach that emphasizes premium materials and advanced technology.
The curved display is the focal point, offering intuitive control of the vehicle’s numerous systems and connected services.
Optional features include a Sky Lounge panoramic roof, ambient lighting with 15 color choices, and a choice of upholstery options including recycled polyester or vegan leather for the environmentally conscious buyer.
Looking Ahead: The Future of Diesel at BMW
The introduction of the X3 40d xDrive raises interesting questions about the future of diesel engines in BMW’s Australian lineup.
While the industry as a whole is moving toward electrification, BMW’s continued investment in advanced diesel technology suggests a recognition that the transition will be gradual rather than abrupt, particularly in markets like Australia where long-distance driving is common and charging infrastructure outside major urban centers remains limited.
BMW’s approach appears to be a pragmatic one—acknowledging the shifting landscape while continuing to cater to customers who value the unique benefits of modern diesel engines.
The mild-hybrid system in the new 40d xDrive represents a bridge technology, reducing emissions and improving efficiency while maintaining the performance characteristics that diesel enthusiasts appreciate.
As emission regulations continue to tighten globally, the future of diesel may ultimately be limited, but BMW’s investments suggest that the company sees a viable market for these powertrains in the medium term, particularly in larger SUVs where the benefits of diesel’s torque and efficiency are most pronounced.
A Strategic Expansion
The addition of the X3 40d xDrive to BMW Australia’s lineup represents a thoughtful expansion of the brand’s offerings in the competitive premium mid-size SUV segment.
By providing a high-performance diesel option alongside existing petrol and hybrid variants, BMW is catering to a diverse range of customer preferences and use cases.
For buyers who regularly undertake long journeys, tow heavy loads, or simply appreciate the unique performance characteristics of a sophisticated six-cylinder diesel, the X3 40d xDrive offers a compelling package that combines luxury, technology, and efficiency with the distinctive driving experience that has made BMW’s diesel models popular among enthusiasts.
With deliveries scheduled to commence in the third quarter of 2025, the X3 40d xDrive will complete a four-model range that gives Australian luxury SUV buyers unprecedented choice.
From the entry-level 20 xDrive at $86,100, through the plug-in hybrid 30e xDrive at $104,100 and the new diesel 40d xDrive at $108,900, to the high-performance M50 xDrive at $128,900, the X3 lineup now offers a powertrain option to suit virtually any preference or requirement.
As the automotive landscape continues to evolve, BMW’s commitment to providing this level of choice—rather than forcing customers down a single technological path—may prove to be a significant advantage in the premium market, where personalization and the freedom to choose remain highly valued by discerning buyers.