2023 BMW XM Reviews, Pricing & Specs

Compare the new 2023 BMW XM to the popular BMW X5, and you’ll discover the XM is seven inches longer and nearly half an inch shorter, but it's the same width. The XM offers less headroom but more front and rear legroom and has substantially less cargo space. Both SUVs seat five people, but only the X5 is available with a third-row seat. The XM weighs 521 pounds more than a plug-in hybrid X5 xDrive50e.

We think BMW gets the XM’s styling right, which isn’t always the case with the automaker’s recent models. It leans heavily on the geometric forms that define the company’s current design language and suffers from the same excessive black plastic rhinoplasty that desecrates several modern BMWs. But, otherwise, the XM exhibits proper proportions and appealing details. The available NightGold trim and 23-inch wheels are gaudy, though. Maybe there’s a reason you don’t pay extra for them.

Fortunately, the attention-getting test vehicle did not have the NightGold treatment. It did have Marina Bay Blue paint, 22-inch M-Light alloy wheels with high-performance tires, an upgraded full Merino leather interior in Silverstone and Vintage Coffee colors, and a stunningly good Bowers & Wilkins Diamond Surround Sound system. Those options increased the price from $159,995 to $165,645.

For context, the XM’s base price is about ten grand more than the similarly exclusive Alpina XB7, which is a performance-tuned version of the BMW X7 SUV. However, the standard XM is not the most expensive BMW. That distinction belongs to the XM Label with a starting price at $185,000. The XM Label isn’t a typical trim level. Instead, it is a series of ultra-exclusive, limited-production versions of the XM with enhanced performance and design details you won’t find on any other example of the SUV.

Open any of the XM’s doors, and you’ll discover an interior that looks, feels, and smells like money. The decadent materials include supple BMW Individual Merino leather upholstery, distressed Nappa vintage leather on other parts of the cabin, matte-finish carbon fiber, and plush Alcantara suede. The high-tech BMW Curved Display houses the instrumentation and infotainment, and creative use of color, light, and texture enhances the cabin. For example, the XM’s three-dimensional headliner with its ambient lighting is something you won’t find in any other vehicle.

It is clear what your considerable cash outlay is paying for when you buy a BMW XM.

When BMW introduced the XM, it claimed the SUV was “the first-ever high-performance vehicle from BMW M with an electrified powertrain.” But what about the BMW i8, you ask? That plug-in hybrid sports car was a BMW Project i model. BMW’s M division had nothing to do with it.

In any case, the XM will enjoy that distinction until the redesigned BMW M5 arrives. But, the electrified SUV won’t lose its significance as the first exclusive M division model since the vaunted M1, even if the XM ultimately shares plenty with other BMW models.

BMW constructs the XM on an updated version of the modular platform it uses to build the X5 and X7 and assembles it in the same Spartanburg, South Carolina factory where it builds most of its SUVs. Recent modifications to this platform accommodate improved batteries that can provide more driving range in BMW’s plug-in hybrids. Case in point: the 2024 X5 xDrive50e now supplies 40 miles of electric driving.

That range number matches what our fully-charged XM could provide, even though the official EPA rating is 31 miles. Every time we charged the battery, the range display said we could travel between 40 and 42 miles on electric power. However, on a hot and muggy day, the 194-horsepower electric motor and 19.2-kWh battery pack powered the XM for only 37.6 miles, consuming electricity at a rate of approximately 2 miles per kWh.

After the battery reached its minimum state of charge, the XM’s gasoline engine turned on to continue the journey. Together, the electric motor and 4.4-liter twin-turbocharged V8 gas engine produce a total of 644 horsepower at 5,400 rpm and 590 pound-feet of torque between 1,600 and 5,000 rpm. The XM Label variants are even more powerful, with BMW claiming they make over 738 hp and 738 lb-ft of torque.

BMW integrates the electric motor into the eight-speed automatic transmission, so whether you’re using gas or electricity, the power flows to all four wheels through the XM’s standard xDrive all-wheel-drive system. Activate launch control, and BMW says the XM accelerates to 60 mph in 4.1 seconds. The automaker estimates the more powerful XM Label models will achieve the same feat in 3.7 seconds.

Before running the XM down California’s fabled Mulholland Highway to its terminus at the Pacific Ocean, we switched everything into Sport mode but left the steering in Comfort mode. In Sport mode, the engine note adds a mellifluous burble that is particularly evident when you lift off the accelerator in advance of an upcoming curve. (In the Sport+ drive mode, the note is a little deeper, throatier, and more raucous.)

We tried a full-throttle acceleration run on a straight, desolate stretch of road. After mashing the go pedal to the floor, there was a small delay in response, and then BAM! The SUV instantly lunged forward and quickly gathered speed while pushing us deep into the driver’s seat.

So, yes, the XM is fast. In addition, the standard adaptive M Suspension Professional, active roll stabilization, and Active Roll Comfort technologies do an expert job of quelling unwanted body motions. Squat, dive, roll, and wallow are utterly absent from the XM’s dynamic repertoire, contributing to exceptionally good handling.

Equipped with Integral Active Steering (rear-wheel steering), the XM eagerly goes where you point it, and the grip is astounding. After my evaluation drive, I noticed the onboard G-meter claimed I’d pulled 1.03g at some point along the way.

In addition, the suspension trickery and rear-wheel steering help the XM feel utterly stable on the highway. The downside is the SUV feels like it’s crawling along like a hypermiling Toyota Prius when, in fact, you’re in danger of losing your driver’s license. That’s why we love BMW’s speed warning function. We always use it, and it likely has saved us from numerous tickets over the years. The XM, like so many of the automaker’s products, simply doesn’t feel like it is moving fast when it most definitely is.

Drive the XM hard, and it reveals itself to be a legitimate member of the M division lineup. You can hardly believe that something this big and heavy can behave so competently on a writhing mountain road.

Not only that, but the XM is surprisingly nimble in urban and suburban driving situations. Parking this SUV is easy, thanks to the rear-wheel steering and plethora of sensors and cameras helping to guide you. (BMW also provides a semi-autonomous parking assist system.)

As for fuel economy, when driving without a charged battery and using the twin-turbo V8 for propulsion, we averaged 18.1 mpg on the evaluation route. Remember, we had already performed a separate range test, so the battery was at its minimum state of charge at the start of the test drive. If you never plug the XM in, and you occasionally drive it the way BMW intends, that’s the fuel economy you can expect.

Unfortunately, even with the SUV placed in Comfort mode, the ride is anything but comfortable. Thanks to the massive, low-profile performance tires, you’ll feel every surface aberration as you drive, and impact harshness makes the SUV feel downright brittle. In addition, there is more road noise in the cabin than you might expect from a luxury SUV carrying a lofty price tag. While those traits align with other highly communicative M division products equipped with firm suspensions and wide, sticky rubber, XM buyers picking this SUV because they think it is “the best one” will likely be unhappy.

Beyond the harsh ride, our XM test vehicle suffered a couple of instances of unusual transmission behavior. The behavior happened once in e-Control mode, which preserves battery power for later, and once in Hybrid mode, which automatically decides how to use the electricity and gasoline for maximum efficiency and performance. (Electric mode is battery power only unless the gas engine is necessary.)

The best way we can describe the problem is a transmission stumble like it went into a “limp home” mode. The common thread in both situations was light acceleration after a traffic light turned green, then a quick release of the accelerator pedal followed by another press of the accelerator to continue gathering speed.

Each time, the engine would rev a little more than expected, but the transmission clearly was not powering the wheels to a commensurate degree. The SUV wasn’t in Neutral, but the engine revs and transmission response were mismatched. The issue persisted for a few seconds and then resolved itself.

Another disappointing thing about the XM is the climate control system. The weather during the testing week was hot, and we drove as frequently as possible in Electric mode. However, unless we opened the climate menu and manually chose “Max AC” with every drive, the upper part of the XM’s interior remained sweltering even after 15 minutes.

Unfortunately, when you choose Max AC, the temperature drops to Low, and the fan blows on its highest setting. This effectively cools the cabin but also adds plenty of noise to the interior. In addition, the seat ventilation system, similarly accessible through the display screen, is also loud.

Frankly, this is not the experience owners of a $160,000 luxury performance SUV expect. When XM owners choose 65 degrees, they’re going to expect the cabin will cool to 65 degrees in a matter of minutes. So, if you live where it is frequently hot and muggy, take our experience into consideration.

Otherwise, the XM’s interior is mostly delightful. We found the front seats to be exceptionally comfortable, and in addition to heating and ventilation, they provide a massage function. We especially like the XM’s thick-rimmed steering wheel, which fits perfectly and comfortably in the driver’s palms.

BMW calls the back seat an M Lounge. Strangely, it even comes with a couple of pillows to underscore that idea. Bathed in ambient light beneath the textured ceiling panel, it definitely has a vibe.

Also, there is plenty of room for passengers in the XM. Unfortunately, the seatback position is too reclined, promoting a slouched riding position that we find uncomfortable. However, that didn’t seem to bother teenage passengers pretending to be ballers.

BMW provides decent storage space within the XM’s cabin. Oversized water bottles fit in the door panel container wells, and the front cupholders are heated and cooled.

However, cargo space is tight for such a big SUV. It measures just 18.6 cubic feet behind the rear seat, which isn’t much more than a typical sedan. Fold the 40/20/40-split back seat down, and it expands to 64.3 cubic feet.

The XM’s standard BMW Curved Display marries two digital displays under a single piece of glass. One conveys instrumentation and data, and the other is a touchscreen infotainment system.

Drivers can configure each one to specific preferences, and BMW provides a stereo volume knob, tuning buttons, and buttons for quick access to the windshield and rear window defrosters. A quartet of climate temperature, fan speed, and airflow mode knobs would also be helpful.

The XM has the latest iDrive 8 infotainment system, and it includes wireless Apple CarPlay and Android Auto, SiriusXM satellite radio, and several connected service packages. The tech is intuitive, but the depth and breadth of the content make it hard to recall where you can find a certain setting, function, or display.

You can rouse the natural voice recognition system by saying: “Hey, BMW.” Then, give a command, ask for directions, or request help, similar to how you would interact with your smartphone’s digital assistant. BMW’s tech works well, though, on this outing, it was unable to find a favorite local restaurant on the first try.

If you’re spending this kind of money on a luxury performance SUV, what’s another $3,400? We strongly recommend the upgrade to the 1,475-watt, 20-speaker Bowers & Wilkins high-end audio system. It is simply the best we’ve ever experienced in any automobile. Plus, the speaker grilles illuminate at night, which looks cool.

Our test vehicle also had a configurable head-up display that is helpful. Unfortunately, it mostly washes out when you’re wearing polarized sunglasses, becoming nearly impossible to read.

As you would expect, the BMW XM comes with the automaker’s Driving Assistant and Driving Assistant Professional packages of advanced driving assistance systems (ADAS).

As far as we could tell, our 2023 XM had Distance Control (adaptive cruise control) and Assisted Driving (adaptive cruise control with lane-centering assist). It did not appear to have Assisted Driving Plus, but it’s possible we overlooked it during the evaluation, as we have in other BMW models. BMW has published information about the 2024 XM and is promoting a new Highway Assistant system, which provides hands-free driving at speeds under 85 mph.

During our evaluation, the Assisted Driving technology performed best on straight sections of freeway but could handle the multi-lane expressways in suburban Los Angeles without too much trouble. It includes automated help with changing lanes, and that feature works well.

On Pacific Coast Highway, driving north away from Malibu, the road posed more of a challenge, the system struggling to navigate a construction zone and becoming confused in areas where lanes widen from one into two or narrow from two to one.

Ultimately, we found Assisted Driving to perform better than many hands-on Level 2 semi-autonomous driving assist systems, and that makes it easier to trust. In our experience, it works best when you hold the steering wheel lightly and let the tech take the lead. Grip the wheel tighter and try to override inputs, and it can irritate you. But you cannot let go for more than a few seconds before the tech tells you to put your hands back on the wheel.

In addition, as we’ve experienced in other BMW models, the lane-keeping assist system is aggressive, but most of the time, it intervenes only when necessary.

We doubt anyone considering the purchase of a BMW XM is worried about the cost-effectiveness of the decision. Buying the XM is a purely emotional choice that you make for reasons other than financial value. Still, as it turns out, the XM isn’t a bad deal. Rivals include the Range Rover P550e, which starts at about $141,000, and the Porsche Cayenne Turbo S E-Hybrid, starting at around $171,000.

While the Rover is more affordable to start, it is available with lots of options, while the BMW comes with nearly everything as standard equipment. Similarly, the Porsche is available with numerous upgrades that can rapidly inflate the sticker price.

Surprisingly then, the BMW splits the difference at its base price and, in as-tested specification, seems to be a bargain of sorts. And based on our experience driving the XM in parts of California where Cayennes and Range Rovers are almost commonplace, the BMW will draw more attention than those models, too.