In 1999, BMW first offered the X5 for sale, making it the company’s first SUV—or, as the brand referred to it, “Sports Activity Vehicle.” Twenty-five years later, this midsize crossover stands at the pinnacle of the luxury automotive market. The X5 is the top-selling BMW model in North America, outshining other noteworthy machines like the X3, 4 Series, and X1. Being number one at BMW is even more remarkable when you consider that BMW is the world’s leading luxury automobile brand, outselling Mercedes-Benz, Audi, Lexus, and other competitors.
Clearly, the BMW X5 continues to strike a chord with luxury vehicle buyers, with annual sales in the United States alone passing the 80,000 mark in 2022. The question is: why, with hundreds of luxury machines out there, have so many people gravitated to this midsize SUV? With the X5 reaching the quarter-century mark, I decided it was a great time to explore the vehicle’s history and how a single letter and number came to represent modern automotive luxury.
A Revolutionary SUV Design
Officially, the BMW X5 was the second midsize luxury SUV, with the Mercedes-Benz M-Class beating it to the punch by two years. However, the X5 separated itself by being the first midsize SUV built on a unibody platform. Almost all previous SUVs, including the M-Class, had chosen the traditional body-on-frame design. This construction is ultra-tough for off-roading and towing but leads to worse on-road driving manners. Conversely, the unibody chassis integrated the body and frame, which allowed the vehicle to be much lighter and have better driving manners.
By the 1990s, unibody construction had been used on cars for decades. Adopting it for midsize SUVs, though, was unheard of. At the time, only a handful of compact models, like the Jeep Cherokee, Toyota RAV4, and Honda CR-V, were built on a unibody chassis. This is part of why BMW chose the Sports Activity Vehicle (SAV) moniker to differentiate the X5 from other SUVs. At the 1998 North American International Auto Show, when the then-unnamed vehicle was confirmed, BMW referred to it as a sport-utility hybrid. Henrick Heitmann, who was then the chairman of BMW USA, went as far as to say, “We are not entering the sport utility vehicle market…we are creating a new market.”
Making such a large vehicle with a unibody was a risk. The gamble paid off, though, and other automakers soon began jumping on board—including Mercedes-Benz, which converted the M-Class to a unibody chassis in 2005. Nowadays, almost every automaker has at least one unibody midsize crossover, from Chevy to Mazda to Hyundai. It all began with the BMW X5, as did the entire BMW X Series, which now includes nine different SUV models.
The Latest Vehicle Performance and Technology
Part of the modern luxury experience is being at the forefront of automotive development, whether it be engine tech, alternative fuels, infotainment, or driver assistance. The BMW X5 has always helped set the bar for luxury vehicle performance. Here’s how each generation helped transform luxury vehicles:
First Generation (2000-2006)
The X5 E53 achieved refined road handling by using four-corner independent suspension and sending its power to the rear wheels like on the company’s sedans. Simultaneously, BMW took advantage of owning Land Rover to add its most notable off-road tech, like air suspension and hill descent control, letting drivers still take on rough terrain if desired. BMW also offered a diesel engine option, demonstrating the company’s growing commitment to alternative fuels. The xDrive intelligent all-wheel drive system, which was shared with the compact BMW X3, was added in 2004.
Second Generation (2007-2013)
The BMW X5 E70 continued to push the boundaries—literally in the case of its new optional third-row seating. BMW iDrive, a cutting-edge system for controlling on-board entertainment and navigation, was added to every X5. It also got the latest generation of BMW twin-turbo engines, and the front suspension was modified to a double-wishbone for better road feedback. Options like a head-up display that even now are reserved for high-end vehicles were available on second-gen X5s. This was also when the BMW X5 M came along, using a motorsports-inspired engine, suspension, steering, and dynamic locking rear differential. This was the first time the M badge had been applied to an SUV, and it helped launch the modern performance SUV market.
Third Generation (2014-2018)
BMW doubled down on efficiency with the X5 F15. The body and wheel aerodynamics were improved to reduce drag, and 2016 saw the introduction of the X5 xDrive40e plug-in hybrid with a 14-mile electric range. This was one of five engine options, including two twin-turbo gasoline engines and two diesel powerplants. The M Steptronic electronic transmission was upgraded from six to eight speeds; it also included Drivelogic and Launch Control to blend sporty driving dynamics and economy as needed. With BMW ConnectedDrive, drivers had even more control over the infotainment for everything from web browsing and smartphone integration to driver assistance.
The X5 Today
It would be easy for BMW to start coasting or focus on the many other vehicles the X5 has inspired. However, year after year, the brand continues to push forward, so the X5 remains the standard that other luxury vehicles aspire to achieve. The evolution of the fourth-generation BMW X5 G05, sold since 2018 demonstrates this. This model is built on the BMW Cluster Architecture (CLAR) modular vehicle platform, a concept that has been adopted by Stellantis, Volkswagen, Subaru, and Ford. More engines are now available than ever, including three diesel powerplants, an updated plug-in hybrid with over 30 miles of range, and a twin-turbo V8 in the X5 M Competition that can make 617 hp for the speed demons.
BMW updates the infotainment and driver assistance technology regularly; the X5 now uses the BMW Operating System 8.5, which is optimized for the curved touchscreen display. The brand has also developed BMW Live Cockpit Professional to replace the traditional instrument cluster with a customizable digital display. Seeing the rising interest in “sporty luxury” models, the exterior was given a more athletic look with features like a grille that has integrated waterfall lighting. To further the march toward alternative fuels, BMW debuted the iX5 Hydrogen concept vehicle in 2019 and now has a pilot fleet.
Through it all, BMW has maintained the elegance and sophistication it’s known for. The spacious interior, high-quality interior materials, and oodles of amenities give drivers and passengers an upscale experience. Since day one, the company’s goal has been to make an SUV that feels like a BMW. In the process, it has created a machine that offers everything most drivers could want, whether it’s amazing power, pinpoint handling, or premium tech like wireless charging and 5G Wi-Fi hotspot capability. Plus, there’s still a dash of the vintage SUV with features like the locking differential and off-road traction control.
Luxury of the Present and Future
People have an appetite for affluence, with a fifth of all U.S. vehicle sales being luxury rides. The BMW X5 wasn’t the first luxury SUV or the first crossover. Still, few other vehicles in any segment have such a consistent track record of innovation, improvement, and forward-thinking design. Even with so many other vehicles crowding the class, I’d argue there’s still no luxury vehicle that has achieved such an excellent blend of on-road performance, light off-roading capability, sophisticated style, and advanced tech. Reports are that BMW plans to unleash a fifth-generation X5 (code G65) as early as 2026, meaning it could set the luxury vehicle standard for many more years.
