The BMW XM is arguably the brand’s most polarizing offering. That doesn’t change for its newest model year, which adds some new cosmetic options, a simplified lineup (at least in the States), and a slightly more sensible price tag. New Style 1096 wheels, painted black, join the option list, and the XM Label (the only version available in the U.S. for 2026) is now available in Brooklyn Grey metallic. Inside you can choose from some new color choices, too. Night Blue/Coffee and Black/Coffee are new additions, while Fiona Red Merino leather exits the option roster. BMW also claims the new XM charges slightly faster than the old one. AC charging now occurs up to 11 kW (the old high was 7.4 kW). Finally, the 2026 BMW XM Label now starts at $159,600, over $25,000 less than it commanded for 2025.
2026 BMW XM Engine, Transmission, and Performance
Incredibly, the BMW XM is still the most powerful BMW M car to date. Its powertrain comprises a twin-turbo 4.4-liter V8 mated to a synchronous electric motor. xDrive all-wheel drive and an eight-speed ZF automatic help put the power down. Total combined output is 738 horsepower, and BMW claims the XM sprints from zero to 60 mph in 3.6 seconds. Not bad for something the size of a planet — it weighs 6,091 pounds. Optional 23-inch wheels will marginally improve handling at the sacrifice of ride quality. Buy for your goals, but we’d skip ‘em. The XM’s heft is obvious from behind the wheel, but it’s unquestionably swift when putting the hammer down.
2026 BMW XM Fuel Economy and MPG
The EPA found the BMW XM Label managed just 14 mpg overall when the truck’s charge is depleted. While running in hybrid mode, the XM achieved 47 mpge overall and 29 miles of all-electric range. The organization also found it took around 2 hours to fully charge the XM. An 18.2-gallon fuel tank means 300 miles of range is certainly a possibility, but not assured.
Interior and Cargo Space
The interior of the 2026 BMW XM remains unchanged since the model’s first model year. With the axing of the “base” model, the XM also has a truncated options list; that is to say, there are none. Everything comes standard on the XM, which includes niceties like Alcantara-swaddled cabin pillars, an Alcantara headliner unique to the model, and a Bowers & Wilkins Diamond Surround Sound System. Ventilated, heated, and massaging chairs are also standard. The XM offers 18.6 cubic feet of trunk space, which isn’t much. But it does have split-folding rear seats, thankfully. Regardless, hauling cargo isn’t really the XM’s forte.
2026 BMW XM Technology and Connectivity
The XM comes with iDrive 8.5 displayed on a 14.9-inch central display and 12.3-inch digital gauge cluster. The usual suite of accommodations crops up, like Apple CarPlay/Android Auto and voice commands. As has been the case in the past, the 2026 BMW XM also includes higher-end tech usually reserved for the 7 Series and its ilk. Examples include soft-close automatic doors and heated/cooled cupholders. No additions for the new model year, though.
Safety and Driver Assistance Features
The XM continues to come standard with most driver assistance features standard. That includes the basics, like lane departure warning and blind-spot detection, but also more advanced systems like Traffic Jam Assistant. While the XM misses the absolute newest driver assists, like changing lanes with a glance in the corresponding side mirror, the basics and a lot more are covered. The best thing is that it’s all included with the BMW XM, with no option boxes to tick or additional cost.
2026 BMW XM Pricing
The best news for the 2026 BMW XM is actually value-based. Since (in the U.S.), the XM Label is now the only model available, its new start price of $159,600 is quite a bargain compared to the 2025 model year, where the “Label Red” (as it was then called) commanded $185,000. The new price more closely aligns with the base 2025 XM, which started at $159,000.
2026 BMW XM: Our Take
While the XM Label’s price cut is nice, the SUV is still far from what we’d call a bargain. But it’s certainly a better pick now than it was previously. That said: we’d probably still take the 2026 BMW X5 M or 2026 BMW X6 M for our money. Both start at a lower price point and are lighter and quicker than the XM. Another delightful alternative is of course the 2026 BMW M5, which utilizes an identical powertrain and provides an overall better driving experience. It’s getting pretty late in the XM’s life cycle, so if you want one, now might be the time. The SUV likely won’t live past 2028.
