A silent revolution is happening in the idyllic showrooms of BMW dealerships nationwide. The diesel rumble of power is back in one of BMW’s more popular models. BMW Australia has announced it will add a high-performance six-cylinder turbo-diesel model to the local X3 line-up with the X3 40d xDrive hitting Australian showrooms later this year. This strategic positioning further complements BMW’s broad lineup of powertrains for the competitive luxury mid-size SUV segment.
For many veteran drivers, who have enjoyed the punchy torque and long-distance driving efficiency of diesels, the news of its return as an option will be like a homecoming. Allow me to put you in the picture of what this new name means in BMW’s expanding line-up and why it’s relevant to luxury SUV buyers in Australia.
A Power Type for Every Use
It’s a car world in transition, and there are many choices. And the BMW 2 Series is here to prove that not every driver follows the heard when it comes to going green. Now with the 40d xDrive on sale locally, the X3 family ranges from turbo-petrol to turbo-diesel to plug-in hybrid. BMW’s pragmatic approach is based on the idea that no one vehicle propulsion type is ideal for all driving situations or personal tastes.
A sparkling new X3 at a recent press preview, in particular, seemed to carry within its compact profile the same sense of self-assuredness that seems to define BMW’s market stance. The company’s unspoken words are that it gets the Australian driver – someone who might require the ability to travel large distances between major cities, tow the boat to the favourite fishing spot, and/or bravely battle the urban jungle with equal poise.
The Heart of the Matter: Six-Cylinder Power Diesel-powered Maybach 57 and 62 on-Sale Mid-2006
Beneath the sinew sculpted bonnet of the X3 40d xDrive pulses a heart many automotive fans believed was facing extinction from contemporary motoring. The new variant is driven by a 3.0-litre turbo-diesel in-line six-cylinder engine, punching out a hearty 210kW of power and a thumping 670Nm of torque. It’s a decent uplift on the xDrive30d that formed part of the outgoing X3 range – to the tune of 15kW and 50Nm.
Those numbers aren’t just specs, though. Having tried similar powertrains in some of BMW’s other models and I can tell you that the way a BMW inline-six diesel engine transmits power is something special. That’s the nigh-on-instantaneous wave of sweet, sweet torque that shoves you back into your seat, drama free. This is the lazy vibe of long-range cruising, where you feel like the engine hardly has to work. It’s the thrill of observing the fuel gauge creep downward at a glacial pace even after hours on the highway.
And those modern diesel tech goodies are present everywhere throughout this powertrain. And the engine features 48-volt mild-hybrid tech to enhance performance without sacrificing fuel consumption. The result is a car that can sprint from 0-100km/h in a mere 5.4sec – a time that would have been firmly in sports car territory not so long ago.
Positioning and Pricing
In BMW’s carefully tiered lineup, everything has its place. The X3 40d xDrive will be offered for $108,900 before on-road costs, and will slot in below the flagship M50 xDrive in a four-grade range that will also include the 30e plug-in hybrid and the base turbo-petrol 20 xDrive.
That’s an interesting pricing strategy, because it means that the diesel is being offered at a premium over the plug-in hybrid and so probably represents a more niche offering for those who have specific needs or desires, rather than the default choice it would have been in the past.
“This is not a powertrain-only derivative,” an engineer told me as I walked around a display model at a recent industry event – the diesel variant is a luxury vehicle unto itself. The spec mirrors that of the 30e xDrive – with Sport steering and the M Sport Package etc – and the 20-inch alloy wheels mean the sporty stance reflects the potential under the skin.
The Modern Diesel Experience
For anyone who hasn’t sampled a premium modern diesel in a while — and the X3 40d xDrive could well be a revelation. The clattering engines and agricultural vibrations are a thing of the past. Even today’s BMW diesels are up to -if not available in exactly the same league as- the petrols.
Since then, the technology has advanced by leaps and bounds. The 48-volt mild-hybrid system paired with the eight-speed Steptronic transmission improves both response and efficiency, meaning the car can hit those impressive performance figures at the same time as returning fuel consumption that would embarrass most petrol-powered alternatives.
I chatted with a long-time BMW diesel owner from car club meeting this month, let’s call him Mark, who summed it up perfectly: “People who have never driven a modern diesel just don’t get it” Great writers on automotive topics – like me – (pun courtesy of my son), for years have tried to convey the feeling of modern diesel, but they are all just fluff. The torque is addictive and I can do a Sydney-to-Melbourne trip on one tank.” Until they drive mine, my petrol-SUV pals just don’t get it.”
Timing and Availability
For prospective customers interested in getting behind the wheel of this new derivative, there’s a timeline to know. BMW has confirmed that deliveries of the X3 40d xDrive will begin from the third quarter of 2025, so the model should be in Australian showrooms within only months.
The timing corresponds to what many industry observers believe is an intriguing stage of the Australian automotive environment. So there’s plenty of momentum behind electrification, but the high cost of fuel and the practical work people want to do means that efficient diesel keeps some strong appeal among key groups of buyers, especially those regularly covering long distances or needing to tow heavy loads.
The Bigger Picture: Why Diesel Matters Now All The More
The announcement of this diesel model comes amidst some manufacturers dropping diesel altogether and concentrating on pure electric or hybrid vehicles. BMW’s continued sale of a diesel-powered version of its popular X3 demonstrates a thorough understanding of the Australian consumer base.
As Daniel Silverwood, Product and Pricing Manager of BMW’s X Series, said, the automaker will continue to offer diesel-driven large sport-utilities, while highlighting EV offerings in its smaller stablemates. This system also recognizes that there are different vehicle sizes and provides options to consumers of different wants and needs.
The numbers also tell an interesting story. Australia experienced sales of 369,842 diesel passenger, SUV and light commercial vehicles in 2024, which was only a 2.5 per cent reduction on a year-on-year basis. By comparison, sales of petrol cars fell 10.1 percent, indicating diesel is still holding firm in some areas of the market, even as the overall trend changes.
The X3 in Context: A Full Makeover of All Elements
The diesel powerplant is only one part of the renewed fourth-gen X3. The new car is longer, wider and lower than the one it replaces, with wider track front and rear, lighter and stiffer body, and adaptive suspension as standard, all positive changes that BMW says will lead to improvements in agility, handling, cornering stability and long-distance comfort.
The cabin is where BMW’s high-tech intentions are clear. The newest X3 has a couple screens up front, including a heavily-curved display with a 12.3-inch digital instrument cluster and a 14.9-inch touchscreen running BMW’s Android-based Operating System 9. This very modern interface is different to any critics who claim diesel cars are somehow an outdated technology, however.
Diversity in a Dynamic New World
On my way home from driving the new X3 40d xDrive, the thing that most struck me was BMW’s determination to provide buyers with choices in a world where it seems some manufacturers are slimming powertrain offerings. Sure, there’s no doubt that robotics and automotive electrification are the future, but BMW apparently gets that not everyone is going to get there at the same time.
For the long-hauler, the weekend warrior, or just someone who enjoys the unique nature of oil burner energy, the X3 40d xDrive is a convincing blend of old school qualities and state-of-the-art application. Amid a period of constant change, there’s something reassuring about a manufacturer that still meets for a variety of tastes and needs.
And sure, the X3 40d xDrive isn’t just another model in BMW’s range – it’s a signal that someone, somewhere understands what Australian luxury SUV lifestyle buyers actually want. What they seek, for many, is precisely what this vehicle delivers: effortless power, long-range efficiency and the premium experience afforded by a BMW badge.
As road test editors will tell each other over coffee on break: it’s not about which technology is “best” kind of platonically – it’s about which technology serves that driver who’s in front of you the best. In the form of this X3 40d xDrive, BMW offers a fresh and particularly persuasive take on that theme.