It was only a matter of time before BMW added a two-litre turbodiesel to the X3 range to provide what its petrol-engined stablemates lack (relatively speaking) - frugal fuel consumption and mountains of low-rev torque.
The newest BMW Sports Activity Vehicle (their nomenclature) manages to look compact but isn't all that much smaller than the X5. There's only 25mm less in the wheelbase and 100mm bumper-to-bumper but the difference is in the packaging.
Big brother isn't renowned for being particularly space-efficient but the X3 is.
There's a clear family resemblance and the X3 exhibits the traditional BMW styling cues as well as the the newer ones.
The sides of the X3 show signs of the mix of the controversial convex/concave surfaces that are a 21st-century BMW trademark.
The X3 has a rear hatch as opposed to a two-piece tailgate on the Five.
As with other X3s, our Sport level test unit wore unpainted polyurethane bumpers, a fact that seems to be at odds with the positioning but does make it more rugged.
The black plastic is continued around the wheel arches and along the to give a slightly homely look. Certainly the consensus is that it isn't muscular in the style of its bigger stablemate and freeway experience suggests it doesn't have the same overtaking presence.
The positioning is clearly as a crossover vehicle to attract 3 Series drivers into a BMW SAV and the driving experience bears this out.
In fact, on tarmac, it feels just like your average Three (which it is, after all, based on), turns with the same precision and feels very similar overall responses.
As you might expect, there's an overt sportiness to the way it handles. The steering is well-weighted and accurate, without any obvious delay between the driver's input and the front wheels moving. The choice of rubber - 235/50 R18s - for versions fitted with the Sport pack highlight a leaning towards providing a typically BMW driving experience.
You soon realise that the X3 is eminently chuckable and exhibits no quirky behaviour when you attack a corner. The roll is well-contained, it manages to absorb speed humps very well and it has assured high-speed stability.
It can even feel decidedly firm with its body control less than perfect as the low-profile tyres hop and skip. On occasion it can feel jittery enough to make passengers look up from their newspaper.
The stiffness of the suspension, the limited travel, and radical tyres had us wondering how it would do in the dirt, yet this is possibly the area where it surprised us the most.
Torque allocation
The xDrive all-wheel traction allocates torque front to back remarkably quickly and the X3 doesn't have a problem maintaining grip and traction on a wide variety of surfaces.
Depending on circumstances and input from a variety of sensors - and this applies on tar as well as on dirt - it can proactively allocate all torque to one or other axle.
As is often the case with electronically controlled systems, a leap of faith is required when you tackle serious obstacles.
Rather than backing off to restore grip, the driver has to lean harder on the accelerator when the traction starts to disappear. Even though the revs are now rising seemingly without control, this is the cue for the electronic brain to start hunting around to see where it needs grip and where it can use the grip available.
Add in descent control that allows the driver to limit maximum speed through controls on the steering-wheel controls and you start to understand why the X3 is so capable.
The impressive array of technology plus the 330Nm of torque enables the X3 to steam through mud and loose sand without a problem and - more surprisingly considering the tightly controlled suspension travel - to cope comfortably with axle-twisters too.
Crawling gear
The latest version of the two-litre turbodiesel makes its peak torque at 2000rpm and 110kW at twice that. There's a wide choice of ratios with its six-speed manual gearbox
First gear is designed for crawling and is well-suited to this role but, it isn't quite short enough to turn the X3 into a mountain goat; the limiting factor is the road speed at which the engine falls off the torque plateau.
There's little urge below about 1750rpm and, as with other soft-roaders, gradients sometimes need to be tackled with more speed than is ideal.
However the good approach and departure angle help, though even with 201mm of ground clearance the breakover angle is poor and the exhaust relatively low-slung: ramp over a rocky mound the silencer will scrape.
The engine/gearbox combo means you're very seldom left flat-footed in traffic and once both have warmed up, they interact with real authority. There's a good blast of speed whether you're pulling away from the lights, or slotting down a gear to overtake.
At altitude (here on the Reef) we measured a top speed of 194km/h and 0-100km/h in 12.2 seconds. Fuel consumption during the test period was just over 10 litres/100km but cruising at a true 120km/h saw that drop to 7.6.
Excellent seats
Because of the modest ride height, getting into the X3 is almost like getting into a car, a fact which is clearly important for the car's target market. Ours was fitted with excellent seats - in a lurid, rust-red leather BMW calls Terracotta.
The driving position is equally good and it is especially easy to find the perfect driving position - something made even easier thanks to the optional electrical adjustment.
Steering-wheel controls take care of key audio functions and cruise control while the instruments are housed in a compact binnacle. The individual dials quite small but are still easy to read.
The fascia reflects BMW's current horizontally layered approach with the centre console angled subtly towards the driver. It's hard to fault the driving environment and for tactile quality the Beemer is still a leader.
The stalks and other controls operate with confident precision and the overall weighting - of everything from the brake pedal to the action of the controls for the optional panoramic roof - smacks of good engineering.
Oddments space
The cabin is reasonably spacious, especially in the back, but drivers with large feet may find the footwell narrow. Oddments space is merely average with the (optional) CD shuttle in the compartment between the seats but elasticised netting for the door pockets lets them hold more than you might expect.
A lidded storage compartment on the top of the fascia takes small odds and ends.
The rear seats, split 60/40, are comfortable and an armrest with a storage compartment and cupholders make it a perfect four-seater.
The boot is especially generous, with a low sill, thanks to the spacesaver spare being fitted below the vehicle. Under the boot floor you'll find the battery (which contributes to the X3's near 50/50 weight distribution), tools, and a ratchet device to lower the spare.
SUMMARY
The X3, like many current generation Beemers, has polarised opinion with its unusual looks but under the skin there's a vehicle faithful to the brand's car-making ethos, and it is genuinely good to drive.
The only significant drawback in Sport guise is a ride that isn't always satisfactory, and if more comfort is what you're after, the Activity pack with its less radical wheel/tyre combo may be a better bet.