We’re spending a week with the 2025 BMW X3, and there’s a lot to take in. It’s the first year of the nameplate’s fourth generation, which means big changes inside and out. It also means expectations are high; after all, there wasn’t much bad you could say about the previous generation, particularly the range-topping and extremely dynamic X3 M model. They say change is good, and we’re happy to report that somehow, BMW found ways to improve. There’s plenty to love about the all-new G45 X3 — even when it’s following in the footsteps of the excellent G01 model that came before it.

Familiar and Excellent Powertrain

2025 BMW X3 B48 ENGINE

Currently, the G45 BMW X3 is only available with xDrive. But that’s just fine; it’s one of the most dynamic and enjoyable all-wheel drive systems on the market. While it would’ve been nice to test out the quicker X3 M50 xDrive model, we can’t say we have any complaints about the X3 30 xDrive; it’s a joy to drive. The turbocharged four-pot (B48B20O2) adopts familiar 48-volt hybrid tech to deliver a total of 255 horsepower and 295 pound-feet of torque. There are some changes in the engine compared to the last B48 we saw under the hood — primarily redesigned intake ports and combustion chambers and new ignition and injection systems — but it feels as solid as ever.

A good engine is nothing without an equally competent gearbox, and the X3 similarly shines here. The ZF eight-speed automatic is far from new at this point, popping up in everything from BMW M Series vehicles to Ram trucks and almost everything in between. And as usual, BMW implements it perfectly here. It’s quicker than it was in the last X3, and redesigned paddle shifters feel a little sportier while still offering a familiar and satisfying “click” upon shifts. When you further considering this X3 doesn’t even have any M Sport goodies, the magic BMW’s chassis engineers have worked is even more commendable. Bonus points for simultaneously delivering excellent fuel economy. The 17.2-gallon fuel tank is good for well damn near 500 miles even in mixed driving conditions.

iDrive 9 is Eminently Usable

2025 BMW X3 STEERING WHEEL AND IDRIVE

Screens are never my favorite feature about a car, but considering the brand-wide push towards the larger curved screen is here to stay, the 2025 BMW X3 does a solid job. After pairing up my phone and reacquainting myself with the various on-screen buttons, iDrive 9 and QuickSelect made navigation, media selection, switching drive modes, and even finding and adjusting stereo settings (a must, at least with the standard sound system) simple and quick. That said, it will definitely take some time to learn if you’re unfamiliar with BMW. Even I needed a full day with the car to really feel comfortable finding everything. Older iDrive systems were perhaps more immediately intuitive.

New Panoramic Glass Roof

2025 BMW X3 GLASS ROOF

Let’s get the bad news out of the way: the panoramic roof doesn’t open at all. This was a disappointing find, but only after I spent hours really enjoying the hell out of the natural light and openness that the panoramic glass roof offers. It’s a new addition to the BMW X3 for 2025. In our tester it comes bundled with the $3400 Premium Package, but it’s also available in the $1400 Convenience Package. We’re here for it, although more timidly recommend it to shoppers in the Southwest and southern California. Despite average temperatures in the US Northeast where we tested the car, sunny days made it toasty fast. Desert dwellers may find the AC working overtime if they opt for the glass roof. It may still be worth it — at least in the winter.

Comfortable and Lux-Feeling Seats

2025 BMW X3 FRONT SEATS

The G45 X3 also marks the first time BMW has offered the model with Veganza upholstery. It’s a pretty noticeable improvement from the last X3 we drove with Sensatec, and feels soft but supportive despite being the standard offering. While there’s certainly no confusing it for leather, it will be more than adequate for less discerning buyers. Paired with the heated and ventilated seat functions, the sport seats are up for pretty much anything and do a great job of feeling sporty without compromising ease of ingress/egress.

Plenty of Space

2025 BMW X3 TRUNK AND CARGO AREA

The X3 has always been “just-right” sized, and that doesn’t change with the G45 X3. The specs say the new 2025 BMW X3 has 67.1 cubic feet of cargo space with all the seats folded down, which is five more cubic feet than last year’s truck. Passenger space feels more or less the same in the back, and we had no complaints from our few (adult) backseat riders. Of course, considering the 2025 BMW X3 is bigger than its predecessor, it had better be a little bit more spacious. Happily, that’s the case.

Overall, the G45 BMW X3 does a lot good. Of course, no car is perfect, and there are endless nits to pick — we’ll cover them separately. The takeaway? The X3 remains an excellent SUV for drivers prioritizing dynamism. And it still does a lot of other things well, too.