27 MPG combined might seem respectable for a compact economy car, but for the 2018 BMW 740e xDrive, it is a highlight. This is a flagship luxury sedan, full of technology, comfort features, and the weight from BMW’s strong build quality. Buyers accept this fuel economy because it lets them experience luxury and performance without exorbitant gas costs.

City and highway performance

The 740e xDrive gets 25 MPG in the city and 29 MPG on the highway. The city rating shows the benefit of the hybrid powertrain; electric assist cuts fuel use when stopping and starting. The highway figure shows the 2.0L 4-cylinder engine works to move a heavy car at higher speeds, relying more on the gasoline engine outside of electric range. The xDrive all-wheel-drive system adds security, but also adds weight and drivetrain losses that impact fuel efficiency compared to a rear-wheel-drive model. This powertrain combines gasoline power with electric drive for efficiency. The automatic (S8) transmission maximizes efficiency with smooth shifts.

Annual fuel cost

The EPA estimates the annual fuel cost for the 2018 BMW 740e xDrive at $2,150. This is based on driving 15,000 miles per year, using a percentage of city versus highway driving, and using the average national fuel price when calculated. The estimate gives a base for comparing different vehicles’ running costs, but individual costs change based on driving, fuel prices, and how much electric-only driving is done.

Real-world expectations

The EPA numbers offer a comparison point, but actual fuel economy varies. People who drive the 740e xDrive for short trips and charge often can exceed the EPA combined MPG. Some may come close to driving only on electric power for a significant amount of time. Those who take long highway trips without charging will likely see fuel economy close to the 29 MPG highway rating, or even lower driving fast or with a heavy load. Hard acceleration will also hurt fuel use.

How it compares

Among plug-in hybrid luxury sedans, the 2018 740e xDrive’s 27 MPG combined is competitive. The Mercedes-Benz S560e, despite a larger engine and focus on luxury, gets similar MPG in some years. The Lexus LS 500h, which focuses on hybrid efficiency, may get slightly better real-world MPG, around 30 MPG combined. For shoppers weighing all Bmw fuel economy data, the 740e balances fuel efficiency with the luxury and performance of a 7 Series. The Audi A8 TFSI e offers similar fuel economy to the 740e, and shoppers might also consider it.

Tips to maximize efficiency

Drive electric as much as possible. Short trips are good for electric-only mode. Charging the battery often helps get the most electric range and lowers gasoline use. The more you drive electric, the less you rely on gasoline, and the closer you get to not needing gas at all.

Accelerate and brake gently. The 740e xDrive’s regenerative braking reclaims energy when slowing down, which recharges the battery. Smooth controls mean more energy is recovered and there is less wear on the brakes. Avoid fast acceleration unless necessary; instead, the electric motor and gasoline engine offer smooth and gradual speed increases.

Choose “Eco Pro” driving mode. This adjusts vehicle systems such as throttle and climate control to prioritize fuel efficiency. The system turns down the climate control and encourages efficient driving. While it may lower throttle response, the fuel savings are worth it for everyday driving.

Reduce aerodynamic drag. Remove items from the roof rack, because these can increase wind resistance and lower fuel economy on the highway. Keep tires inflated to the recommended pressure. Underinflated tires increase rolling resistance and reduce MPG. This is especially important for highway trips.

Plan routes to avoid stop-and-go traffic. While the hybrid system helps in the city, idling and constant acceleration still use fuel. Choose routes with less traffic to keep consistent speeds and lower fuel use. If you’re shopping for this generation of vehicle and want to know the 740E MPG across all years, research different model years online.