Drive with us: BMW X3 Hybrid Review

Join us as we take a closer look at the BMW X3 — prestige, performance and practicality all in one attractive package

The BMW X3 is a genuine stalwart in the premium SUV class, having been around for over 20 years. And it's got some serious competition: The Mercedes-Benz GLC, Audi Q5, Porsche Macan and Volvo XC60 are all circling.

But the premium SUV market is having a rejig.

Chinese brands are arriving with high-tech alternatives at considerably lower price points, and even loyalists are being given reasons to look elsewhere.

We drove the third generation xDrive30e M Sport — the plug-in hybrid variant that offered competitive running costs and low BiK tax rates, making it particularly attractive for business drivers. Since then, BMW have launched an entirely new fourth generation X3, arriving in late 2024 with a bigger body, more power and more tech than ever before.

But does the X3 justify its premium price tag in one of the most competitive classes on the market? Let's find out.

What we drove:

Model: BMW X3 xDrive30e M Sport

Fuel type: Plug-in Hybrid

Power: 292PS

Transmission: Sport Automatic with Gearshift Paddles

Colour: Sophisto Grey

Specifications correct at the time of publication

Commanding by nature

The broad, muscular design commands attention on the road, while the kidney grille and long sloping bonnet add to the premium look.

It’s not the most dramatic looking SUV in its class — it's more executive than overtly sporty. But there's a quiet confidence to the way it carries itself that feels entirely appropriate for a car at this price point.

It doesn't need to shout.

The fourth generation X3, which arrived in late 2024, pushed the design further still.

A sharper, more distinctive design language gives it a stronger road presence than ever, and the optional 'Iconic Glow' illuminated kidney grilles make it impossible to miss after dark.

The new generation is also larger overall, with new alloy wheel designs across the range adding to the premium stance.

Built for the finer things

Step inside and the BMW X3 makes its premium intentions clear from the off.

Our M Sport test car came finished in Black Vernasca Leather with blue stitching running across the seats and dashboard — and it looked seriously smart.

The intricate blue stitching and 'X' detailing throughout add touches of class that reward closer inspection, and comfort levels live up to every premium expectation.

One caveat: The dark, black-felt lined roof does create a somewhat gloomy cabin. The optional sunroof is well worth adding if your budget allows; it makes a noticeable difference to the overall feel of the space.

The iDrive system with its rotary dial remains one of the best infotainment setups in the class, intuitive and convenient on the move in a way that touchscreen-only systems simply aren't.

The touchscreen itself is brilliantly responsive and well laid out, and connectivity is well catered for with a USB-C in the armrest, a USB in the centre console and two USB-C ports in the rear. The Harman Kardon audio system is worth upgrading to via the Technology Pack.

Some elements of the centre console felt a little dated compared to newer BMWs we'd driven around the same time.

The fourth generation X3, which arrived in late 2024, addressed this comprehensively.

BMW's Curved Display setup dominates the new interior — a 14.9-inch touchscreen and 12.7-inch digital instrument cluster sit side by side, offering sharp graphics and a speedy response.

Crucially, BMW kept the iDrive rotary controller, a welcome decision that means you're never solely reliant on the touchscreen.

The overall feel is more modern and special than almost anything else in the class, though some cheaper plastics in places are a slight disappointment at this price point.

Born to cruise

The BMW X3 is one of the smoothest cars we've had the pleasure of getting behind the wheel of.

Comfortable, easy to drive and handling extremely well; it does exactly what a premium SUV should. The hybrid engine is suitably punchy too, with more than enough power on tap for everyday driving and effortless motorway overtakes.

It's not the most exciting drive in class — if it's thrills you're after, the Porsche Macan or Alfa Romeo Stelvio will serve you better. But the X3 is easy, comfortable and utterly reliable behind the wheel. And for a premium SUV, that's exactly the point.

The fourth generation brings meaningful improvements to the driving experience.

Ride and handling balance is better than ever, and adaptive dampers are available across the range (coming as standard on the M50). The steering is light and responsive, though it does lack a little feedback compared to BMWs of old.

Going the distance

The xDrive30e M Sport we drove offered a claimed electric range of 27-30 miles (WLTP Comb). That might not sound groundbreaking, but it makes a noticeable difference to running costs day to day — particularly for business drivers, who benefit from a BiK tax rate of just 13-14%.

The fourth generation PHEV is a significant step forward.

BMW fitted a much larger 19.7kWh battery, pushing the claimed electric range up to 56 miles (WLTP Comb). That’s almost doubled!

One notable omission though: There's no DC rapid charging capability on the fourth generation X3 PHEV. That puts it behind the Mercedes-Benz GLC, which not only offers up to 83 miles of electric range (WLTP Comb) but also accepts DC charging. That’s worth bearing in mind if longer journeys are a regular occurrence.

For company car drivers, the fourth generation's BiK rate drops to just 9% — making it an even more compelling proposition than the car we tested.

What's good, and what's not

While a great car, everything has its flaws. Let's take a look:

The good bits:

• One of the smoothest, most comfortable drives in its class
• Hybrid engine is punchy and refined
• iDrive rotary controller — one of the best infotainment setups in class
• Fourth generation pushed range up to 56 miles — a significant improvement
• 570-litre boot on the fourth generation — class competitive

The not-so-good bits:

• Dark roof liner creates a gloomy cabin — sunroof recommended
• Some centre console elements felt dated on the car we drove
• Fourth generation has some cheaper plastics in places — disappointing at this price point
• No DC rapid charging on the fourth generation PHEV

What's the verdict?

The BMW X3 has been one of the best premium SUVs on the market for over 20 years — and the xDrive30e M Sport we drove demonstrated exactly why.

It's not the most exciting drive in class, but it sets the standard for refinement, comfort and everyday usability. The hybrid powertrain adds real-world running cost benefits, and for business drivers, the BiK advantages are hard to ignore.

The fourth generation raises the bar even further. More power, more tech, a larger boot and a significantly improved PHEV system — it's a better car in almost every way.

Top 5 reasons to consider the BMW X3:

1. One of the smoothest, most refined drives in its class
2. Low BiK tax rates — particularly compelling for business drivers
3. Punchy hybrid engine with real-world running cost benefits
4. Beautifully designed cabin with premium materials throughout
5. Fourth generation pushes electric range to 56 miles (WLTP Comb) and boot space to 570 litres

Would we recommend leasing an BMW X3?

Absolutely. The BMW X3 is the ideal choice for families and business drivers alike; a premium SUV that delivers on every front without ever feeling like hard work.