The 2018 BMW X3 xDrive30i ($42,650) comes with the 2.0-liter turbocharged four-cylinder engine, 8-speed automatic, and all-wheel drive. Standard features include run-flat 18-inch tires, synthetic leather upholstery, automatic climate control, Bluetooth, power tailgate, rearview camera, power front seats, and reclining rear seats. Leather upholstery adds $1,700. Apple CarPlay compatibility is available only when coupled with navigation. (Prices are MSRP and do not include destination charge.)

An M Sport package ($5,300) adds 19-inch wheels, a sport-tuned suspension (with adaptive dampers for $1,000 more), panoramic roof, LED headlights, gray aerodynamic add-on components, and keyless entry.

X3 M40i ($54,500) gets the six-cylinder twin-turbo engine and xDrive all-wheel drive. Performance tires are mounted on 19-inch wheels. M Sport brakes and exhaust, plus Performance Control, are standard. The M40i boasts stiffer suspension tuning, four-piston M-spec brakes, variable-ratio electric power steering, and adaptive shock absorbers. The drive-mode selector offers Eco, Comfort, Sport, Sport+, and Individual modes.

Except for a taller stance than its predecessor, along with wider air intakes, the X3 hasn’t changed much in appearance. Even though the vehicle sits lower, its glass area is notably tall, expanding outward vision.

Moving the front wheels forward has improved X3 proportions. Enlarged taillights and additional glass enhance the rear end. Optional aerodynamic elements tend to make the overall impact more noticeable.

Improvements to the reworked X3 are more evident within the spacious cabin, which boasts a cleaner look. BMW’s iDrive control knob sits next to a futuristic joystick-style shift lever. The dashboard may be bracketed by wood or metallic trim.

With navigation installed, a 10.3-inch iDrive touchscreen provides a lovely, high-resolution display. Without it, a 6.5-inch screen suffices.

In the M40i, a 12.3-inch screen, displaying large numerals and dials, replaces the usual gauges. A complementary 12.3-inch infotainment display is available.

Sport seats keep front occupants securely in place. Upholstered in synthetic leather, the front seats are power-adjustable. Heating and cooling are optional. M40i seats incorporate well-padded seatbacks and cushions, promising good support.

Lengthening the wheelbase by several inches has expanded interior space, especially in rear-seat legroom. Four adults fit comfortably and can spread out. Headroom is especially abundant. Even with the optional sunroof, six-footers aren’t likely to feel restricted.

Rear passengers benefit from 36.4-inch legroom, and wide door openings. The back seat might look flat, but it provides fine support for long journeys, with ample knee clearance for taller occupants. As is often the case, a fifth passenger might feel cramped.

Cargo space totals 28.7 cubic feet behind the rear seat, expanding to 62.7 cubic feet with rear seatbacks folded down. In addition to vertical walls, the cargo hold has minimal intrusions from trim pieces, cargo management rails, and a durable covering.

In acceleration, ride, and handling, the third-generation X3 stands well ahead of predecessors, approaching the admirable standard long-established by BMW’s 3 Series passenger cars.

No X3 is short on power. Smoothly responsive, the xDrive 30i base engine ranks with the best. Power arrives early and effectively, a boon in stop/go traffic. The transmission almost seems to read your mind. In highway driving, the 8-speed downshifts promptly to match engine capability.

In M40i trim, the X3 becomes nearly flawless, providing superior poise. Cornering flatly, gripping the pavement tenaciously, able to hit 60 mph in 4.6 seconds, the M40i promises refined, momentous pleasure. Its sport exhaust system emits a delectable beat. Gearchanges arrive earlier in the M40i, with paddles available to supersede the joystick shifter. Performance is marred only by a bit of unwanted tension in the brakes and overly-firm steering.

Handling is about as nimble as that of a sport sedan, matched by a comfortable ride. All-wheel drive helps keep the X3 calm and contented on slippery pavement. Eight-inch ground clearance and 19.6-inch fording capability help make off-roading practical.

Fuel economy isn’t bad. The four-cylinder xDrive 30i is EPA-rated at 22/29 mpg City/Highway, or 25 mpg Combined. With its twin-turbo six, the M40i is EPA-rated at 20/27 mpg City/Highway, or 23 mpg Combined. BMW’s stop/start system now is a lot smoother than it used to be.