The XM may not be the commercial success BMW hoped for, but the Bavarians aren’t giving up on their wild SUV yet. Sources close to Munich tell us that minor updates will be introduced next month. While it won’t be a full Life Cycle Impulse (LCI), the dedicated M model is receiving several tweaks.
BMW plans to add body colors, wheel designs, and new upholstery choices. However, the XM’s body panels, headlights, taillights, and steering wheel will remain unchanged for the 2026 model year. In contrast to the new customization options, BMW is simplifying the lineup: the 644-horsepower version will be retired globally.
The XM will continue exclusively as a Label model in the United States. European buyers will also be able to order the lesser XM 50e with an inline-six. A price cut for the European-market XM is reportedly in the works, though it’s unclear if it will apply to both the 50e and the Label or just one of the two. For reference, the base model currently starts at €132,400 in Germany, while the Label commands a staggering €203,000.
One missing piece of the puzzle is whether BMW USA plans to reduce the XM Label’s price. However, huge discounts are already available. For 2025, it starts at $187,625 before options, though Individual colors are included at no extra cost. The only add-ons are the $2,500 M Driver’s Package and a $3,400 Bowers & Wilkins sound system.
A true LCI isn’t in the cards for the XM, and the model may end up being a one-and-done affair. Although earlier reports hinted at a fully electric second generation, that now seems increasingly unlikely. Instead, BMW is focused on developing the iX5, iX6, and iX7, along with ALPINA versions of the latter. Yes, a fully electric ALPINA is coming. The newest member of the BMW Group is also set to launch V8 versions of the next X7, further reducing the need for a second-gen XM.
The XM is shaping up to be a niche oddity in BMW’s history, much like the 3 Series and 5 Series Gran Turismo models. That said, the larger of the two GTs lived to see a second generation as the 6 Series Gran Turismo. Even the 2 Series Active Tourer had a successor, though its days appear to be numbered.
