23 MPG combined is what you get with the BMW X3 M40i. This isn’t a hybrid focused on ultimate efficiency; it’s a performance SUV that offers decent fuel consumption. Buyers know that the turbocharged inline-six engine and BMW’s M division performance cost something, and that cost is measured at the pump.

City and highway performance

The EPA’s city estimate for the X3 M40i is 21 MPG. This figure reflects typical urban driving: stop-and-go traffic, frequent lights, and lower speeds. While not the best in its class, it is respectable given the engine’s 382 horsepower. On the open road, the X3 M40i gets a better 27 MPG highway. This shows the engine’s efficiency at a steady speed and the effectiveness of the eight-speed automatic transmission (S8) in saving fuel when less performance is needed.

Annual fuel cost

The EPA estimates the annual fuel cost for the 2020 BMW X3 M40i is $2,500. This is based on driving 15,000 miles per year and using national average prices for premium gasoline, which this engine requires. Your actual fuel costs may change depending on your driving and local fuel prices. Drivers who accelerate quickly or spend more time in traffic will likely spend more than this. Drivers who mainly drive on highways and drive efficiently may spend less than $2,500 per year.

Real-world expectations

EPA estimates are a standard, but real-world MPG often changes. X3 M40i owners should expect a range of numbers. When driving hard and enjoying the engine’s performance, fuel economy can easily drop below the EPA’s estimates. When driving carefully, especially on long highway trips, getting or even exceeding the EPA’s 27 MPG highway rating is possible. Driving style and conditions will affect the fuel efficiency that owners experience.

How it compares

The X3 M40i’s fuel economy places it with similar vehicles. The Mercedes-AMG GLC 43, another performance SUV, gets similar numbers, around 22 MPG combined. The Porsche Macan S, which offers similar power and driving, lands nearly the same, though older models used even more fuel. If efficiency is important, buyers might consider the Acura MDX (around 22 MPG combined), although its driving experience is different than the M40i. For a broader view, check X3 MPG across all years. Keep in mind that you’d have to give up performance and engaging driving to get much better fuel economy.

Tips to maximize efficiency

The X3 M40i needs premium fuel to deliver its advertised power and efficiency. Using lower-octane fuel could save money, but it also results in less engine performance. Consider how many miles you’ll be driving; using the right fuel can provide better mileage and help the vehicle last longer.

Use your X3 M40i’s drive mode selector. The “Eco Pro” mode changes vehicle settings to save fuel, including throttle response and transmission mapping. This will reduce performance but improve gas mileage on a long drive.

Avoid fast acceleration and hard braking. The X3 M40i’s turbocharged engine responds quickly to the throttle, but each hard acceleration uses more fuel. Smooth, gradual acceleration and watching traffic can make a difference.

Keep your tires inflated. Underinflated tires increase rolling resistance, which makes the engine work harder and reduces fuel economy. Check your tire pressures regularly and inflate them to the levels on the doorjamb sticker. For all Bmw fuel economy data, including other models and years, see our complete resource.