BMW’s much-improved second generation X3 compact SUV has been launched internationally and is scheduled on Australian shores in the first half of next year.

X3’s entry model remains the 2.0-litre turbo-diesel (although improved with more power) but the current 2.5-litre and 3.0-litre petrol engines have been replaced by the xDrive35i model with BMW’s TwinPower turbocharged six- cylinder. 

The new petrol engine delivers 225kW of power at 5,800 rpm and peak torque of 400Nm from as low as 1,300 rpm. Driving through BMW’s stunning eight-speed Steptronic automatic, the X3 xDrive35i rockets from zero to 100km/h in just 5.7 seconds – that’s much faster than the current xDrive25i (8.9 seconds) or the xDrive30i (7.5 seconds).

And for the first time for a vehicle with an automatic transmission, the xDrive35i features Auto Start Stop technology for reduced fuel consumption and emissions. According to European measurements, the new six-cylinder X3 returns average fuel consumption of 8.8l/100kms and C02 emissions of 204g/km.

The 2.0-litre, four-cylinder, turbo-diesel xDrive 20d is sold in Europe with either the eight-speed automatic or a six-speed manual transmission. Maximum power has been boosted to 135kW at 4,000 rpm and peak torque climbs to 380Nm. That equates to an improved zero to 100km/h time of 8.5 seconds. 

BMW has also improved the packaging of the X3 with a 40:20:40 split-fold rear seat and luggage capacity boosted to 1,600 litres.

Underneath, BMW’s engineers have given the new X3 a completely revised suspension set-up and the EPS Electric Power Steering gains the Servotronic variable assistance function.

Externally, look for some more aggressive styling cues (along the same lines as the upgraded X5).

BMW Australia will finalize local specifications and pricing closer to next year’s launch.