The 2025 BMW X3 marks the fourth generation of BMW’s compact luxury SUV. While it carries the general shape of the previous generation, the new X3 more closely follows the German automaker’s “Vision Neue Klasse” design language that we’ve seen on the new 3-Series. It’s also largely indistinguishable from its predecessors in terms of features, making it a competitive choice in its class.
BMW
The new BMW X3 brings a hybrid powertrain and standard AWD
The biggest change for the 2025 BMW X3 is the addition of all-wheel drive as a standard feature across all trim levels and new hybrid powertrains.
The base model X3 30 xDrive starts at $49,950 without any options. Under the hood is a turbocharged 2.0-liter four-cylinder paired with a 48-volt hybrid system and an eight-speed automatic transmission, producing 255 horsepower and 295 lb-ft of torque. Three drive modes, Personal, Efficient, and Sport, help drivers tailor that power to their own needs, and an optional trailer hitch allows it to tow up to 4850 pounds.
BMW
It’s not the fastest car in the world, with a top speed of 130 mph and a supposed 0-60 mph time of 6 seconds, but it’s not meant to be either.
The interior is where the X3 really shines
What it is meant to be is a luxurious, relatively affordable SUV that can take you to your destinations in style. The cabin comes packed with standard equipment, including heated and ventilated power-adjustable sports seats in three color choices, perforated and quilted faux leather upholstery in various colors, and either an aluminum or magnolia fine-print wood dashboard. If faux leather doesn’t quite fit your vision of a luxury SUV, you can upgrade to extended Marino leather in one of two colorways for an extra $1,500.
BMW
Speaking of colors, BMW will charge you extra if you want your X3 draped in something other than boring Alpine White. Regular metallic paint jobs cost an extra $650, while the matte “Frozen Pure Grey Metallic” or “Frozen Deep Grey” shades cost $3,600 each.
The infotainment is provided by a 14.9″ curved display with BMW’s latest iDrive 9 system. All of the functions can be controlled via touch, steering wheel buttons, voice commands, or the classic iDrive rotary knob. For entertainment on the go, you might want to consider the optional BMW Digital Premium package, which provides video streaming and gaming options when the vehicle is stopped.
BMW
In terms of storage, BMW claims that there is 10 percent more rear cargo space than the X3’s previous generations, with a total of 32 cubic feet with the seats up.
How does the X3 stack up against the competition?
The 2025 BMW X3’s closest domestic competitors are arguably the Audi Q5 and Mercedes-Benz GLC. In terms of price, the 2025 Mercedes-Benz GLC starts at $50,400, while the upcoming 2025 Audi Q5 should start at $46,695. That makes the Benz $450 more expensive and the Audi a whopping $3,255 cheaper, but price isn’t everything.
Mercedes-Benz
The Mercedes-Benz GLC is just as quick but lacks AWD
The GLC has a similar turbocharged 2.0-liter four-cylinder engine backed by a 48-volt hybrid system but a nine-speed automatic transmission instead of the X3’s eight-speed. It, too, makes 255 horsepower and 295 lb-ft of torque but reaches 60 mph in 0.4 seconds less at 5.6 seconds. The biggest differentiator, and possibly a dealbreaker for some, is the lack of standard AWD in the GLC.
The Audi Q5 manages to be both cheaper and faster
The Q5 is the quickest of the group, with its turbocharged 2.0-liter four-cylinder engine slated to produce 268 horsepower and around 236 lb-ft of torque through a seven-speed automatic transmission. All-wheel drive will be standard, making the Q5 a closer competitor to the X3.
Neither cabin skimps on the luxury factor
The cabin of both is as luxurious as you’d expect in this segment, although the GLC aims for more unique dashboard patterns and vents while the Q5 is more reserved. The Mercedes-Benz relies on two separate screens: a 12.3-inch digital gauge display and an 11.9-inch infotainment touchscreen.
Mercedes-Benz
The Audi uses a similar curved screen setup, with an 11.9-inch digital gauge cluster and a 14.5-inch touchscreen infotainment display. If that isn’t enough, you can even get an optional 10.9-inch passenger display.
The downside is that both rely strictly on touch controls for every function, whereas the BMW at least retains its iDrive knob.
Final thoughts
As with many comparisons, the deciding factor is ultimately your own preference. All three of these Germans offer a distinguished, upper-class traveling experience with enough space for the whole family.
The 2025 BMW X3 is almost the benchmark SUV in its class. Its standard AWD, plush cabin, and not-that-slow powertrain tick all the boxes for a proper compact luxury SUV. Its sub-$50,000 price tag makes it a competitive choice, although if the Audi Q5 retains those specs when it comes out, it could eat the X3’s lunch.
The Mercedes-Benz GLC, on the other hand, should be your top choice if a lavish cabin that tops the rest is an absolute must.
Which one would you choose? Let us know in the comments below!
About the author
Gabriel Ionica
Senior Editor, Autoblog