BMW as a brand is defined by the 3 Series. The compact luxury sedan condenses everything that BMW is all about, and it’s no surprise that it’s also the brand’s global bestseller for most of its history. However, ever since consumers started shifting their preference toward SUVs and crossovers, the 3 Series’ bestselling status has come under threat by the X3. Now in its facelifted third generation, the 2023 BMW X3 is slowly stealing sales from its sedan sibling. But should you pick the X3 over its rivals from Lexus or MercedesBenz?

From a design standpoint, the facelifted 2023 BMW X3 xDrive20d Business variant that we have here comes with minor but noticeable updates. The update gives the X3 sleeker headlights, a more rugged front bumper, and new LED tail lights whose pincer-like shape is untraditional of BMW’s usual L-shaped graphics. The side profile remains largely the same, though since this is the entry-level xDrive20d Business, the 18-inch wheels fitted to this car look a bit too small. On the upside, there’s no enormous grille to spook other people, which means that the X3 is about as traditional as any modern BMW could get.

Changes to the interior are much more minor compared to its updated sheet metal. The overall dash has been slightly redesigned with new physical controls (thankfully) for the climate as well as a redesigned center console that brings it in line with the rest of the BMW range.

Aesthetically, the X3’s interior isn’t as special compared to the likes of the Lexus NX or Mercedes-Benz GLC, but the materials used and the solid tank-like build quality is unparalleled in its segment. The leather seats are of the synthetic variety, but they still feel nice enough and will bode well for buyers who want a vegan interior.

Where the 2023 BMW X3 excels is in terms of its cabin tech. iDrive 7, which in this case is housed in a 10.25-inch screen, is still my absolute favorite infotainment in the industry. Response times, as well as the great balance between physical and touch controls are second-to-none. Wireless Apple CarPlay and Android Auto also come as standard, but on the downside, the Live Cockpit Plus’ digital-like analog gauges look a bit rudimentary.

Residing under the hood of the 2023 BMW X3 xDrive20d Business is a familiar 2.0-liter turbo diesel engine that produces 190 hp and 400 Nm of torque. This engine has powered a plethora of BMWs already and even to this day, it’s one of my favorite diesel engines, period. Power delivery, as with every BMW, is linear and punches throughout the rev range. Whether it’s overtaking on two-lane provincial roads or left-lane hoggers on expressways, there’s no shortage of smooth, linear power from the X3’s diesel motor. The eight-speed automatic made by ZF is likewise one of my absolute favorite transmissions. There’s a reason why many premium brands choose it and it’s because it’s the closest anyone could get to a perfect transmission.

Balanced also for comfort

Matching that sublime drivetrain is a chassis that offers a nice balance between comfort and BMW’s famed sporty handling. The comfort part is particularly great because, unlike most BMWs, the suspension tuning in the X3 skews more toward offering a controlled ride. At the same time, body roll is well controlled and the steering is sharp, though road feel is a bit lacking compared to past BMWs. The Porsche Macan practically defines the segment in terms of sportiness, but as mentioned, the X3 shines in its ability to balance comfort and handling.

The stiff body structure and thick sound insulation also mean that this is a car that’s at home at triple-digit speeds. Road and wind noise is so muted, while its high-speed stability is basically something that only German luxury cars can achieve. Where it also leads the way is in terms of efficiency. Averaging at more than 14 km/ liter over a week’s worth of use despite having this much performance makes the BMW X3 an excellent all-rounder. Sporty? Check. Comfortable? Absolutely. Fuel efficient? You bet!

Everyday usability

The 2023 BMW X3 continues the German luxury automaker’s long tradition of engineering vehicles that provide a great balance of comfort, sportiness, and everyday usability. And since this is in a body style that’s currently in vogue, then we wouldn’t be surprised if the X3 eventually overtakes the 3 Series to become BMW’s global bestseller. Retailing for P3,990,000, the X3 we have here is one of the most affordable in its segment. However, to achieve its price, it lacks any form of advanced driver-assistance systems (ADAS). Lack of ADAS aside, there’s a reason why the X3 is very popular, and it’s because it fundamentally provides an unparalleled driving experience that luxury buyers tend to look more into.