Why BMW still sets the standard for luxury SUVs

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BMW has been defining luxury for more than 110 years. Others, if we're being honest, are still playing catch-up.

That may sound like a bold statement in an era when almost every premium auto manufacturer talks endlessly about craftsmanship, technology and luxury experiences, but spend enough time across BMW's SUV range and something becomes immediately apparent. The company approaches luxury differently.

It's why BMW collected five category victories in the 2026 CarExpert Choice Awards, including wins for the X1, iX1, X3 and X5. And it’s also why, despite enormous pressure from established rivals and a growing number of tech-laden newcomers, BMW continues to resonate with buyers in a way few brands can replicate.

Because beyond the leather, the screens, and the ambient lighting lies something far more difficult to engineer – depth.

Long before luxury became a marketing exercise, BMW was obsessing over steering feel, chassis balance, and driver engagement.

The phrase 'The Ultimate Driving Machine' wasn't created by an advertising agency searching for a clever slogan. It reflected a philosophy that still shapes every BMW today, regardless of the drivetrain employed.

What impresses me most is that BMW has managed to carry that philosophy into an era when customers want more choice than ever before.

Petrol, diesel, plug-in hybrid, fully electric. The company now offers all of them without fundamentally changing the character of the vehicle. And that is the exception, rather than the norm, even in the luxury segment.

Take the X5.

CarExpert's Best Large Luxury SUV for 2026 remains one of the most complete vehicles on sale today. It still features the practical split-tailgate that owners love, offers everything from turbocharged six-cylinder engines through to plug-in hybrid technology, and even the V8-powered M60i and M Competition flagships.

Yet regardless of the powertrain, every X5 delivers the same level of refinement, comfort and confidence that has long defined BMW's larger SUVs.

For me, however, the real story sits further down the range.

Small and medium SUVs now account for close to half of all new vehicle sales in Australia. This is where families live, where commuters spend their time, and where buyers increasingly expect premium experiences despite the lower price points.

And it's here that the X1 and X3 have become two of BMW's most important models.

The X1 is perhaps the clearest demonstration of BMW's philosophy. The performance-focused X1 M35i xDrive, the plug-in hybrid xDrive25e and the fully electric iX1 xDrive30 each appeal to entirely different buyers, yet all feel unmistakably related.

The M35i brings genuine performance credentials, complete with M-specific styling, larger wheels, quad exhaust outlets, and a level of driver engagement that remains rare among small SUVs.

The xDrive25e plug-in hybrid strikes what may well be the sweet spot for many Australian buyers, offering the ability to complete daily commuting on electric power, while retaining the flexibility of a petrol engine for longer journeys.

But even the entry-level X1 sDrive20i – which in no way, shape or form feels like the entry point to the range, thanks to its premium cabin and punchy performance in all driving conditions – is just so well sorted when it comes to body control and driver feedback.

Then there's the iX1 xDrive30. For me, it remains one of BMW's most convincing electric vehicles. Cleanly designed, beautifully resolved and instantly recognisable as a BMW, it demonstrates just how much the company learned from those pioneering i3 and i8 models more than a decade ago.

Inside, the X1 range feels properly premium.

The curved display, floating centre console and thoughtful use of materials create an interior that feels contemporary without becoming overly complicated. BMW's ambient lighting remains among the best in the business, while the driving position and seat comfort continue to set benchmarks in this segment.

More importantly, everything simply works. BMW Operating System 9 is intuitive, the ergonomics remain excellent, and every control feels carefully considered.

Step into the X3 and the same philosophy continues, albeit with greater space, refinement and maturity.

The latest-generation X3 is arguably one of BMW's strongest SUV designs yet. The surfaces are edgier, the proportions more elegant, and the road presence stronger than before.

Whether it's the X3 20 xDrive or the plug-in hybrid 30e xDrive, both variants maintain the same essential character. Quiet, comfortable and refined, but never detached.

This remains one of BMW's great strengths. The steering still communicates, the brake pedal feels natural, and the chassis remains balanced. Even the electric models preserve the sense of connection that has long distinguished BMW from many of its competitors.

And then there is what comes next, though it's already here. The ‘Neue Klasse’ iX3 may prove to be one of BMW's most significant models in decades.

The mid-size premium SUV’s headline figure – more than 800km of WLTP driving range – has the potential to fundamentally alter perceptions around electric SUVs. Yet the significance of its Neue Klasse technology extends well beyond range alone.

Next-generation software, new battery technology, faster charging and an entirely new digital architecture represent the blueprint for BMW's future.

Most importantly, BMW appears determined to ensure that electrification doesn't come at the expense of the qualities that have defined the brand for generations. That's the challenge facing every manufacturer today.

Many brands can create luxury. Some can create technology. Others can build impressive electric vehicles. But very few manage to combine all three of these elements while maintaining a genuine connection between car and driver.

After more than 110 years, BMW still does. And perhaps that's why the company continues to define luxury rather than simply follow the trend.

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