BMW iX3 40 broadens Neue Klasse appeal

BMW has expanded its incoming Neue Klasse electric SUV range with the introduction of the rear-wheel drive iX3 40, a strategically priced entry model that delivers up to 635km of driving range while slipping beneath Australia;s luxury car tax (LCT) threshold.

Due in Australian showrooms during the fourth quarter of 2026, the iX3 40 is priced from $89,900 plus on-road costs, making it $20,000 more affordable than the flagship dual-motor iX3 50 xDrive and positioning it as BMW’s most accessible Neue Klasse EV to date.

The pricing strategy is deliberate as it is below the fuel-efficient vehicle LCT threshold and the iX3 40 also qualifies for fringe benefits tax (FBT) exemptions under current novated lease arrangements, potentially broadening its appeal among salary-packaging buyers.

Unlike the dual-motor iX3 50 xDrive, the new iX3 40 adopts a single-motor rear-wheel drive configuration.

Power comes from BMW's sixth-generation eDrive system, featuring an electrically excited synchronous motor mounted on the rear axle.

Outputs are 235kW/500Nm with a 0-100km/h sprint clocked in 5.9 seconds and a v-max of 200km/h.

The drivetrain forms part of BMW’s all-new Neue Klasse architecture, developed specifically for next-generation electric vehicles.

Energy is supplied by an 82.6kWh usable battery pack using BMW’s latest cylindrical lithium-ion cells.

BMW says the new battery technology offers around 20 per cent greater energy density than previous-generation prismatic cells while reducing weight and improving packaging efficiency through a cell-to-pack construction method.

The result is a claimed 635km WLTP driving range while charging capability is equally impressive via 300kW DC fast charging which gives a 10-80 per cent recharge in 21 minutes for up to 300km of range added in 10 minutes.

An 11kW AC charging is standard with 22kW AC charging optional.

BMW says a full recharge can be completed in approximately four hours and 15 minutes when equipped with the optional 22kW on board charger.

The iX3 40 also showcases BMW’s latest digital ecosystem.

At the heart of the cabin is the new BMW panoramic vision display, BMW panoramic iDrive interface, BMW operating system X, BMW intelligent personal assistant, and Amazon Alexa+ integration.

Vehicle information is projected across a panoramic display stretching almost the full width of the dashboard, while BMW says its multimodal interface combines touch, voice and haptic controls for a more intuitive user experience.

The Neue Klasse platform introduces BMW’s new electronics architecture featuring four high-performance central computers.

These systems manage vehicle dynamics, automated driving functions, infotainment and comfort and convenience systems.

Central to the driving experience is BMW’s new Heart of Joy control processor, which the company claims reacts up to ten times faster than previous vehicle control systems, improving precision and responsiveness.

Despite its entry-level positioning, the iX3 40 arrives with a substantial equipment list.

Standard features include 20-inch alloy wheels, M Sport package, harman/kardon audio system, panoramic glass sunroof, BMW 3D head-up display, heated front seats, heated steering wheel, wireless charging, adaptive cruise control, steering and lane control assist, parking assistant plus, Veganza upholstery, digital key plus, and LED ambient cabin lighting.

Buyers can further personalise the vehicle with the optional M Sport Package Pro, which adds red M Sport brakes, M sports seats, M seatbelts, and black exterior detailing.

BMW has simultaneously expanded personalisation options across the entire iX3 range.

New BMW Individual paint finishes now include Grigio Telesto Pearl Effect, Tansanite Blue II, Twilight Purple, Java Green, Voodoo Blue, Sepang Bronze, and Urban Green II.

Premium paint options are priced from $6000 to $7600.

The arrival of the iX3 40 significantly broadens the appeal of BMW’s Neue Klasse strategy.

With pricing close to some combustion-powered X3 variants and a range exceeding 600km, the new entry-level model positions BMW strongly against premium EV rivals including the Audi Q6 e-tron, Mercedes-Benz EQE SUV, and higher-spec versions of the Tesla Model Y.

More importantly, it provides BMW with a potential volume contender in Australia’s expanding premium electric SUV segment while showcasing the full breadth of the company’s next-generation Neue Klasse technology.

2026 BMW iX3 pricing*:

*Pricing excludes on-road costs.