BMW helped start the compact luxury crossover segment with their very first X3 but until now BMW has resisted making performance versions for some reason. The all-new third generation CUV however is different with the addition of the M40i trim, the first time the X3 has received the legendary letter M. As part of BMW's new M-Performance line, the M40i is more than previous M-Sport trims of the X3 but less than a "full-on-M" like the X5M or X6M. While folks looking for an X3M will be disappointed, this model is aimed directly at folks that want more power, high value, and a direct Mercedes GLC 43 AMG competitor.

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