The X3 is one of BMW’s most popular models, and it’s easy to see why. The vehicle features engaging driving dynamics, attractive styling, a spacious interior, and a solid cabin. The SUV rolls into 2023 relatively unchanged, but BMW did refresh the X3’s interior and update its tech.

The 2023 X3 M comes with a twin-turbocharged 3.0-liter inline-six that makes either 473 or 503 horsepower and either 457 or 479 pound-feet of torque—higher output numbers come from the available Competition model. All-wheel drive (AWD) and an eight-speed automatic transmission are standard. BMW hasn’t elaborated on performance figures for the SUV yet, but we expect zero-to-60 times in the low-three-second neighborhood for the Competition package.

The X3 M comes with selectable drive modes that allow the driver to tailor performance of the steering, braking, suspension, and throttle. Depending on the setting, the SUV can be anything from a comfortable city cruiser to a brutal monster, but the ride is quite punishing in most settings. The payoff is that the SUV rivals many sports cars. Many will be surprised to find the limits of the X3’s grip, which come far beyond any legal speeds on public roads.

While it shares most of its exterior shape with the standard X3, the X3 M enjoys several upgrades that set it apart. The more aggressive front fascia features unique geometric shapes for vents. (Mercifully, BMW avoided slapping a giant grille on the X3, so it retains a reasonably sized face.) Looking at the vehicle’s side profile, the only real tells that it’s an M come from the wheels and the subtle badging. It’s almost as if BMW went out of its way to make the SUV a sleeper, which is a welcome philosophy.

The X3 got a fresh interior for 2023, with upgraded technology and a clean new design. The X3 M gets deep, heavily bolstered seats and upscale materials throughout its cabin. That includes leather upholstery, metal trim, gloss black accents, and more. Competition models get even more aggressive front seats, but no matter how it’s spec’ed, the X3 looks and feels premium throughout.

A 12.3-inch gauge cluster is standard and offers configurable views of different vehicle systems. It’s joined by a 12.3-inch touchscreen that runs Apple CarPlay and Android Auto. BMW’s iDrive 8 is on board, bringing an updated interface, more intuitive controls, and more responsive navigation. There’s also a physical volume knob, so no fiddling around with a touchscreen while driving.

The 2023 BMW X3 M goes on sale later in 2022 with a starting price of around $74,000. It competes with the Alfa Romeo Stelvio Quadrifoglio, the Audi SQ5, the Jaguar F-Pace SVR, and the Porsche Macan.