The BMW X3 is an SUV manufactured by BMW since 2003, based on the BMW 5 Series platform. Now in its third generation, BMW markets the car as a Sports Activity Vehicle, the company's proprietary descriptor for its X-line luxury vehicles.

The first-generation X3 was designed by BMW in conjunction with Magna Steyr of Graz, Austria—who also manufactured all X3s under contract to BMW. BMW manufactured the second-generation X3 at their Spartanburg plant in South Carolina, United States. Starting with the third generation, BMW South Africa's Rosslyn plant began production of the X3, alongside the Spartanburg plant, after the facility underwent a major upgrade to prepare for the X3 production, replacing the long-running 3 Series production in the plant. About 76,000 units will be manufactured there annually.

BMW X3

The car was the first mid-size, premium SUV on the market. In 2008, BMW started competing with the Mercedes-Benz GLK-Class (renamed GLC-Class since 2016), and numerous other SUVs in this segment. The X3 is smaller than the X5 and X6, and bigger than the X1 and the X2.

BMW X3

An all-electric variant is sold as the BMW iX3.

BMW X3

First generation (E83; 2003)

The first-generation BMW X3, internally designated as the E83, was produced from 2003 to 2010 and based on the BMW 3 Series platform. The E83 was designed by BMW in conjunction with Magna Steyr of Graz, Austria who also manufactured all first-generation X3s under contract to BMW.

As a precursor to the X3, in 2003 BMW presented the xActivity concept vehicle at the Detroit Auto Show featuring the 3 Series platform and a fixed-profile convertible body style with reinforced longitudinal rails connect the A-pillars to the rear of the car on both sides, eliminating B- or C-pillars.

The X3 premiered in September 2003 at the Frankfurt Auto Show (Internationale Automobil-Ausstellung), sharing its rear suspension with the E46 330xi and using an automatic four-wheel drive system marketed as xDrive. All X3 models feature BMW's all-wheel drive system, with a default 40:60 torque split between the front and rear axles and the ability to direct all torque to either axle. The system used an electronically controlled multiple-plate clutch to enable infinitely adjustable, fully variable distribution of torque from front to rear with the capability of up to 100 per cent of engine torque going to either axle. BMW markets the crossover as a Sports Activity Vehicle, the company's descriptor for its X-line of vehicles.

The X3 was conceived to combine the agility of a compact model with the driving experience of the company's X5. The X3 featured an upright, high H-point seating configuration, marketed as "command seating". Styling exhibited interacting concave and convex surfacing, characteristic for the company at the time along with a reinterpreted Hofmeister kink.

BMW upgraded the model in 2005 and facelifted the model in 2007, with revised body bumpers, engine, interior trim, and suspension.

The X3 3.0i won the Canadian Car of the Year Best Sports Utility Vehicle award for 2005. The X3 was initially criticised for its harsh ride, austere interior, lack of off-road capability and high price.

U.S-spec X3 models were well-equipped, with standard equipment such as: the BMW Business A/M-F/M-CD radio (with optional dealer-activated Bluetooth functionality for wireless phones), an eight-speaker premium audio system, leatherette-trimmed seating surfaces, dual power front bucket seats, aluminium interior trim accents, keyless entry, and seventeen-inch (17") aluminium-alloy wheels. Optional equipment included a ten-speaker premium audio system with Digital Sound Processing (DSP), Sirius Satellite Radio, a dashboard-mounted color GPS navigational system that replaced the upper dashboard storage compartment and contained a modified version of BMW's "iDrive" multimedia system, eighteen-inch (and later nineteen-inch) aluminium-alloy wheels, Nevada leather-trimmed seating surfaces, heated front and rear seats, a heated steering wheel, a security system, BMW Assist, a panoramic dual-pane moonroof, Xenon front headlamps with adaptive front headlamps, and sport front bucket seats.