14 MPG. The 2023 BMW XM, with its 4.4L twin-turbo V8 and electric motor producing a combined 644 horsepower (or 738 in the Label Red), isn’t designed to save fuel like a Prius. It’s about bold performance, striking looks, and making a statement. This fuel economy figure is what you pay to join a very exclusive club. Drivers considering the XM are prioritizing presence and power over gas savings.

City and highway performance

The EPA estimates the XM will achieve 12 MPG in the city and 17 MPG on the highway. These figures are an accurate reflection of what this car is. Stop-and-go city driving, even with electric assistance, strains the strong drivetrain.

The XM’s weight and aggressive tuning keep it from fully taking advantage of its hybrid system in urban environments. Once you get on the open road, the highway MPG improves. However, the XM’s aerodynamics limit any expectation of efficiency, even when cruising. These numbers aren’t surprising, considering the vehicle’s weight, power, and emphasis on performance.

Annual fuel cost

The EPA estimates an annual fuel cost of $4,150 for the 2023 BMW XM. This calculation is based on driving 15,000 miles per year, using a national average fuel price. Your actual costs will vary depending on your driving habits, the type of fuel you use (premium is recommended), and local gasoline prices. This $4,150 figure is a benchmark, a reminder of the running costs of owning a high-performance, hybridized SUV.

Real-world expectations

The official EPA numbers provide a baseline, but real-world MPG will depend on how often you plug in the XM and its electric range is used. If you consistently drive short distances and charge frequently, you’ll reduce gasoline consumption. If you treat the XM as a powerful V8 SUV and rarely plug it in, you’ll likely see fuel economy at, or even below, the EPA estimates. Aggressive driving will deplete the battery and fuel tank rapidly. Anyone who expects Prius-like efficiency from the XM will be disappointed.

How it compares

Compared to other high-performance SUVs, the XM’s fuel economy is predictably low. The Lamborghini Urus, for example, is rated at 14 MPG combined. The previous generation Porsche Cayenne Turbo S E-Hybrid, another plug-in hybrid SUV, fares slightly better, achieving around 18 MPG combined, thanks to its smaller footprint. The Mercedes-AMG GLE 63 S Coupe manages around 17 MPG combined, though it lacks the XM’s plug-in hybrid capability. The point is its fuel consumption is in line with its high-performance rivals. For buyers cross-shopping these vehicles, small MPG differences are unlikely to be a deciding factor.

Tips to maximize efficiency

Charge whenever possible. Using the electric driving range will improve overall fuel economy. Plug in at home overnight and take advantage of public charging stations during the day, especially during errands or at work.

Drive smoothly and avoid aggressive acceleration. The XM’s potent V8 is tempting, but doing so constantly will hurt your fuel economy. Gentle acceleration and consistent speeds will help keep the engine running efficiently.

Use the “Electric” drive mode for short trips. This mode forces the XM to operate on electric power, for commutes and local errands when possible. Know when electric power has been spent to make sure you’ll have gas available to get you to your destinations.

Maintain proper tire inflation. Underinflated tires increase rolling resistance, which reduces fuel economy. Check your tire pressure regularly and inflate them to the recommended levels, typically found on a sticker inside the driver’s side doorjamb.

Consider regular maintenance. Keeping your XM maintained, including oil changes and air filter replacements, can ensure it operates efficiently. A well-maintained engine burns fuel better.

See all BMW fuel economy data and XM MPG across all years on our site.