IT may look like an off-roader but it drives like a sports car - and it's got the fuel economy of a supermini.
The BMW X3 is now fitted with a three-litre diesel engine capable of sprinting from 0 to 60 mph in a shade under 6.5 seconds.
Twenty years ago that would have been V12 supercar performance, but the modern day standard is indicative of the advances made by BMW's engineers.
Top speed of the X3 3.0d is a theoretical 149mph while it can average 32.5mpg with exhaust emissions of 232 g/km.
It is the top performer of any of the six models in the latest X3 line up. But it is not cheap. The range starts from £25,285 for a two-litre petrol model but the flagship 3.0d will set you back £36,415 in SE trim.
Add BMW's M Sport goodies such as uprated suspension and super plush leather upholstery and you are talking £38,175.
That is more expensive than anything else in the medium 4x4 market - even outstripping the new Land Rover Freelander which is not even on sale until December.
Moreover, the X3 is not a full-blown off-roader. BMW calls the X3 an SAV - not SUV - the U for utility being replaced by A for activity.
While the X3 does have four wheel drive and hill descent control, its off-roading credentials are fairly limited compared to a Land Rover.
On the road it is a different story and the X3 is class leading in this department.
It is taut, potent and very precise to drive. The six cylinder diesel engine has a wonderful throbbing sound as it goes about its business.
In this sense the X3 is in a league of its own. Standard equipment includes stability controls and even devices to dry the brakes in the wet to ensure top notch stopping power.
There are tyre pressure sensors, parking radar and styling tweaks from an M Aerodynamic package - not to mention twin, double exhaust clusters at the rear. From any angle this car looks menacing.
However, compared with the latest Freelander - which has a lavish interior almost in the same league as a Range Rover - the X3 lacks sparkle.
Inside it is very workmanlike - typical BMW and the general appearance is little different to that of the 1 or 3 Series models.
An upgraded communications package which includes sat nav and a TV, plus leather upholstery and aluminium trim adds almost another £4,000 to the cost of the X3 M Sport - and for that sort of money you expect it to be the best.
It is a brilliant piece of engineering but still not the best all rounder among medium sized SUVs. Indulgence is what this BMW is all about.