The BMW X3 is a smaller five passenger SUV/Crossover that competes with models like the Audi Q5 and Cadillac SRX. The second-generation X3 which arrived in the 2011 model year is larger and more luxurious than the original X3. Two model designations indicate the equipped powertrain. The X3 xDrive 28i equips a 240-bhp turbocharged four-cylinder engine and all-wheel-drive. The X3 xDrive 35i equips a 300-bhp turbocharged inline six-cylinder engine and all-wheel-drive. The X3 has a base price around $39,000 which does not include leather seating. Like other BMW models, the X3 requires a number of option packages to add common equipment and the price can quickly escalate. The X3 is produced in South Carolina.

A 2.0l turbocharged four-cylinder engine replaces the six-cylinder in the xDrive 28i model.