The BMW X3 was, in its former incarnation, not a much-loved car. It was fairly ugly, fairly basic and had some dirty, grumbly engines.

With a revamped X5 above, oddball X6 somewhere else in the mix and the new X1 below, BMW might have considered ditching its medium-sized MPV as a bad lot.

We're grateful it didn't. This new X3 is larger and much more impressive in terms of overall quality. It somehow feels sleeker too, as if it's more of a jacked up premium estate than a boxy SUV.

Think of the BMW 5 Series GT and how the manufacturer has blurred segments and created new niches. If the X6 were a slightly absurd pimped coupe-cum-SUV, the X3 is a large, high-quality estate. 

But with competition to include the Range Rover Evoque and Audi Q5, dominating its respective segment will not be an easy task for the X3.

Performance

The X3’s engine range has expanded quite significantly over the last few years. Still, diesel remains the sole choice.

Kicking off the range is a two-wheel drive 2.0-litre four-cylinder unit with 148bhp. If you are after an engine that will get you from A to B but still has a bit of meat behind it then this is perfect, reaching the 62mph mark in just 10 seconds.

The other diesel offerings in the X3 range are all four-wheel drive. Hovering in the middle of the engine line-up is the xDrive 20d 187bhp engine – good for a benchmark sprint of 8.1 seconds. 

If you are after even more oomph then go for either one of the flagship engines - xDrive 30d or the xDrive 35d. Only available with automatic transmissions, the xDrive 30d and xDrive 35d produce 255bhp and 309bhp respectively – with the latter reaching 62mph in a mere 5.3 seconds.

Also, credit to BMW for the eight-speed automatic transmission, it is smooth, fast and allows for lightning-quick shifting.

Ride and Handling

The X3 is readily equipped for off-roading there’s no doubt about it.

In terms of driving dynamic the new X3 feels like a big leap in quality. Equipped with a smooth yet powerful 3.0-litre diesel engine and eight-speed autobox, the car feels wonderfully serene on the road - surprisingly agile but a wonderful cruising machine. The xDrive all wheel drive directs 60% of available pulling power to the rear wheels in everyday driving, but this is electronically varied when fore or aft when required. The X3 is readily equipped for off-roading there’s no doubt about it, though ground clearance isn’t especially high. On the tarmac I found the X3 something of a revelation. While not the tallest SUV on the market I found it virtually impossible to detect any body roll, even during some spirited driving, while cornering felt utterly assured. There was no trade-off in terms of the ride quality either; with a quiet, comfortable cabin the X3 proves to be a relaxing place to be.

Interior and Equipment

The first incarnation of the BMW X3 was the BMW xActivity concept vehicle, presented at the Detroit Auto Show in 2003.

There are three trim levels to choose from: xLine, SE and M Sport trim. Each of the trim levels come well-equipped. Full leather upholstery interior, dual-zone aircon, ambient lighting, cruise control, front and rear parking aids, automatic headlights, electronic handbrake, multi-function steering wheel and new iDrive system... there's a lot more available as paid options and more standard kit I haven't mentioned. M Sport brings a deeper front spoiler, chunkier sills and 18-inch alloy wheels, as well as interior and suspension upgrades. Of course, all of this lovely gadgetry does cost money. The quantum leap in quality however puts the new X3 far beyond the Land Rover Freelander 2. Most notable is the vastly superior interior, much larger and verging on luxury quality. Because it's larger in every dimension the new X3 has better head and legroom - and the rear seats look very large for the sector, with good space for three passengers plus a larger boot at 550 litres that extends to 1,600-litres with rear 40/20/40 folding seats down.

Cost

The X3 is a bit pricey when compared to its competitors as it is more expensive than the Land Rover Freelander 2 and Range Rover Evoque.

The X3 is a bit pricey when compared to its competitors as it is more expensive than the Land Rover Freelander 2 and Range Rover Evoque. It is however cheaper than the Audi Q5. As this is a BMW, it makes use of the impressive EfficientDynamics system that means stop-start, brake energy regeneration, use of lightweight materials and various engines tweaks. The sDrive 2.0-litre 148bhp derivative is the most efficient in the range, returning an average of around 56mpg and emitting just 131g/km of CO2.

Our Verdict

The X3 has something for everyone. It is composed on the road, and off it, its interior is luxurious, it is practical and it’s good looking. But, most importantly for some, it is fun to drive. Price may be a worry for some car buyers, but it is worth pricing up exactly what engine and trim you want before you hastily disregard the X3. We were not exactly fans of the last X3, but this all-new model is an enormous improvement and surely the car to beat in the sector. The Range Rover Evoque might have something to say about that, but the X3 sets a very high bar.