2026 BMW X3 review: Over-styled and underestimated

With German cars, drivers usually know what to expect. Generally speaking they’re conservatively stylish, luxurious, well engineered, and a thrill to drive. And when any vehicle steps outside this box, car lovers are quick to notice.

The 2026 BMW X3 is the very definition of this. When the new-generation X3 launched for the 2025 model year, its bold design and untraditional switchgear immediately set it far apart both from previous versions and from competitors. Even its performance comes across differently despite it being as capable as ever. In this 2026 BMW X3 review, we’ll examine the blend of driving prowess, premium finishes, and family-friendly features that buyers expect from a luxury compact SUV.

For this review, I drove the 2026 BMW X3 M50 for a week, following my usual routine around my home in Toronto. The vehicle was provided temporarily for the purpose of this review by BMW Canada. Have questions about the 2026 BMW X3? Ask the automotive experts in our Road Trips in Canada Facebook community!

2026 BMW X3 review: Pros and cons

Pros

• Excellent power and drivability
• Usable tech features
• Great fuel economy

Cons

• Polarizing design
• Bizarre air vent controls
• Rough ride with adaptive suspension

What’s new on the 2026 BMW X3?

The BMW X3 entered its fourth generation for the 2025 model year. As a result, there are no major changes for 2026.

What competes with the 2026 BMW X3?

As a compact luxury SUV, the 2026 BMW X3 competes at the top of the segment alongside the Mercedes-Benz GLC and Audi Q5. Its less conventional competitors include the Genesis GV70, Volvo XC60, and Lexus NX. Several vehicles in this segment are due for redesigns in the next year or two that may put them in closer contention with the X3 such as the Range Rover Velar, Cadillac XT5, Lincoln Corsair, and Alfa Romeo Stelvio.

How much power does the 2026 BMW X3 have?

The 2026 BMW X3 is available with two powertrains. The base X3 30 xDrive has a turbocharged 2.0-litre four-cylinder engine producing 255 horsepower and 295 pound-feet of torque. In the X3 M50 xDrive I tested, a turbo 3.0-litre inline-six-cylinder engine generates 393 hp and 428 lb-ft, which is good for a 0 to 100 km/h time of 4.6 seconds. In Canada, each includes an eight-speed automatic transmission and BMW’s xDrive all-wheel drive (AWD) by default.

What is the towing capacity of the 2026 BMW X3?

Towing capacity for the 2026 BMW X3 30 xDrive peaks at 1,815 kilograms (4,000 pounds) when properly equipped. The X3 M50 xDrive is capable of towing slightly more at 2,200 kg (4,850 lbs).

What is the fuel economy of the 2026 BMW X3?

For the base 2026 BMW X3 30 xDrive, Natural Resources Canada rates its fuel economy at 8.8 litres per 100 kilometres in city driving, 7.1 on the highway, and 8.1 combined. The higher-powered 2026 BMW X3 M50 xDrive is rated at 9.3 L/100 km city, 7.7 highway, and 8.6 combined.

During my test drive, I saw combined fuel consumption of 8.5 L/100 km over 380 kilometres of mixed city and highway driving. For a compact SUV with nearly 400 horsepower, that figure is stellar. For reference, the recently redesigned Audi Q5 uses 9.7 L/100 km combined with its 2.0-litre turbo four-cylinder, the 2026 Mercedes-Benz GLC burns between 8.9 and 10.9 L/100 km combined in its non-electrified formats, and the 2026 Genesis GV70 consumes between 10.6 and 11.5 L/100 km combined.

Both engines require premium fuel, but so do the other vehicles listed. You’ll therefore be spending less at the pumps by choosing an X3 over its direct competition.

2026 BMW X3 M50 driving impressions

I’ll be honest: when I first got behind the wheel of the new BMW X3 M50, I wasn’t immediately impressed. Power delivery seemed sluggish, there was a lot of body movement in turns and while stopping, and the ride seemed overly harsh. I soon realized, though, that there are three drive modes — Sport, Efficient, and Personal — and someone had set up the Personal drive mode that way. (Why anyone would do this to such a capable SUV I’ll never understand.)

As soon as I clicked it into Sport mode, everything came together. The suspension tightened up considerably, the steering became more responsive, the entire powertrain seemed to wake up, and the exhaust began to sing.

The takeaway is that the fourth-generation X3 M50 is as capable as any X3 M Sport model that’s come before it, but it also offers plenty of room for customization with more noticeable differences between these selections. It means you’re essentially purchasing a chameleon, an SUV that can go from comfortable and easy-driving to an agile backroads carver at the touch of an icon.

The only thing that didn’t change much was the ride quality, which was very stiff regardless of which setting I tried despite this unit being equipped with the optional adaptive M suspension. If you expect that would be bothersome, the X3 30 may be a better choice.

Size and exterior design

The fourth-generation BMW X3 is 34 millimetres longer, 29 mm wider, and 16 mm shorter than the third-generation version. In the grand scheme of compact SUVs, those changes aren’t overly dramatic.

Its styling certainly is, though. Beauty is in the eye of the beholder, but let’s just say the kidney grille has become a very dominant feature at the X3’s front end, especially with its surround lighting. Otherwise, it features minimalistic accents apart from a dramatic shoulder line, which sits low at the side mirrors (and helps with visibility) and climbs to well above the rear wheel arch. The separated headlights and taillights buck the widespread full-width lightbar trend.

Interior design

Inside, the fourth-generation X3’s chunky LED interior lighting and chrome-look accents lend a futuristic look to an otherwise relatively staid cabin. Technology dominates the dashboard with a pair of screens mounted under a single housing and a large and upright wireless charging pad underneath, which sits directly behind the pair of cupholders. A toggle-style shifter, a volume dial, and a wheel that can be used to control the infotainment system are tucked into the centre console.

One new design element I don’t love is the haptic vent control, which is integrated into the side door along with the door lock and handle. It tries to fix something that was never a problem to begin with.

Upholstered dashboards are very on trend, but this one comes with a very thick weave that looks like it would trap dust and be a nightmare to clean. It’s optional, fortunately, and I’d recommend skipping it. Pass on the extra-cost wood accent, too: it’s not overly expensive, but it’s also hardly noticeable.

How much interior storage does the 2026 BMW X3 have?

Small item storage inside the fourth-gen X3 is roughly standard for the class. The front row has access to two cupholders in front of the wireless charging pad, a bottle holder in each door beside relatively small door pockets, and a centre console bin that can hold a small handbag at best. The second row has mesh-style pockets on the front seatbacks, two cupholders in a pull-down centre armrest, and bottle holders and small pockets on each door.

Seat comfort

With the extra-cost Merino leather and Premium Package in our X3 M50 tester, the seats are opulently covered and adjustable for excellent comfort. Heated front seats are standard in Canada, while ventilated front seats cost extra.

The 40-20-40 divided rear seats allow for loading of long items such as skis while leaving space for two rear passengers. Heated outboard rear seats are available as part of the Rear Comfort Package, which also equips manual rear window shades and three-zone climate control.

How many car seats fit in the 2026 BMW X3?

As with most compact SUVs, two child seats can be mounted in the outboard rear positions or one in the centre rear position using the provided LATCH connectors CH CH. The centre connectors are far apart and the middle portion of the rear seat cushion is raised slightly, so ensure your car seat will install securely if you plan to use the centre position.

How much cargo space is in the 2026 BMW X3?

The 2026 BMW X3 has 570 litres of cargo space behind the second-row seatbacks and up to 1700 litres when those seats are folded. The total figure compares favourably to the X3’s major competitors: the 2026 Audi Q5 has 1,612 litres behind the front seats, and the 2026 Mercedes-Benz GLC has 1,680 litres. However, both those SUVs have more space behind the second row at 780 litres and 620 litres respectively.

All of these figures are well below the average cargo figure for mainstream compact SUVs. For example, the 2026 Toyota RAV4 offers 1,070 litres behind the second row, while the 2026 Honda CR-V has 1,113 litres.

Infotainment and technology features

The centrepiece of the 2026 BMW X3’s cabin is the pair of screens, a 12.3-inch digital instrument cluster and a 14.9-inch infotainment system. I found both these screens fast, clear, and easy to use with the information laid out logically. The climate controls are also screen-based on a permanent graphic bar set at the bottom of the screen. Since they’re intuitive to use and the screen is not overly tall, it’s less distracting to operate them than most.

Wireless Apple CarPlay and Android Auto are standard on the 2026 BMW X3 and pair well with the wireless charging pad.

The Insurance Institute for Highway Safety gives the 2026 BMW X3 a Top Safety Pick+ rating, its highest available. A number of safety features and driver assistance technologies are standard, including lane departure warning, blind spot intervention, front and rear cross-traffic alert, and safe exit assist. However, it’s surprising to see adaptive cruise control included in an extra-cost package, a feature most automakers include as standard equipment.

Where is the 2026 BMW X3 built?

The BMW X3 is assembled in two locations globally. While Canada previously received shipments from the plant in Spartanburg, South Carolina, orders for the Canadian market are being fulfilled by BMW’s South Africa facility as of this writing due to the tariff situation with the United States.

How much is the 2026 BMW X3 in Canada?

The 2026 BMW X3 30 xDrive has a Canadian starting price of $63,355 including a $2,955 destination charge, and the X3 M50 xDrive starts at $80,855. The test unit provided has an invoice price of $99,855, which includes the Premium Package, Rear Comfort Package, M Sport Pro Package, extra-cost paint, Merino leather, 12-inch aero wheels, open-pore wood trim, ventilated front seats, the adaptive M suspension, upholstered dashboard, and trailer tow hitch. The X3 M50 would be just as enjoyable without many of these features.

Is the 2026 BMW X3 worth buying?

With luxury cars, the perception of value largely comes down to personal taste. While the performance chops and usable technology are still there, BMW’s current styling direction isn’t for me. It lacks the elegance I’ve long appreciated the automaker’s vehicles for. But if its design speaks to you, you’ll likely find the 2026 BMW X3 to be worth the price.

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