BMW X3 is a compact crossover SUV, marketed by the infamous German automaker. It is made on the basis of the E46 3 Series car platform and is currently the first generation of BMW X3 models. The company designed the new X3 by merging with Magna Steyr in Austria, who will build all BMW X3s under a special contract. After the X5, the X3 was the second vehicle marketed by BMW as a Sports Activity Vehicle.

BMW had introduced the precursor to the X3 model as a concept vehicle, which was displayed at the 2003 Detroit Auto Show. They introduced the SAV trailer based on the 3-series platform with no vestigial roof and windows.

As the company used parts from the E39 5-series model in the manufacture of the X5, the engineers had also used parts from the 3-series in the manufacture of the BMW X3, especially the rear suspension of the E46 330xi. When the X3 debuted in the second half of 2003, BMW had announced that it would equip the latest 4-wheel drive system to power the next-generation X3 and X5 models.

Now, the time has come for BMW to seriously consider expanding its SUV/SAV lineup. They are launching the 2010 X3 alongside the new BMW X1, which will be much more compact compared to the X3, but surprisingly powerful.

The latest X3 and X1 models feature the latest xDrive system which intervenes with the driver shortly after any driving instability is noticed and takes charge of the situation, preventing fatal accidents.