The BMW X3 offered two engine options for Indian buyers. The first was a 2.0-litre petrol engine that produced 252 hp and 350 Nm of torque. The second choice was a 2.0-litre diesel engine which made 190 hp and 400 Nm of torque. Both versions used an 8-speed automatic transmission to send power to all four wheels. This all-wheel-drive system was called xDrive. The petrol engine helped the car go from 0 to 100 kmph in just 6.6 seconds. The diesel engine was popular for its better fuel efficiency on long highway trips. This model did not have a manual gearbox option. Every variant of the BMW X3 was designed to provide a smooth and powerful ride. These engines were known for being reliable and strong during their time on sale in India.

The BMW X3 had a very clean and spacious cabin. It offered enough room for five people to sit comfortably. Inside, you would find a large 12.3-inch touchscreen in the middle of the dashboard. This screen helped the driver control music and navigation easily. There was also a 12.3-inch digital screen behind the steering wheel to show speed and other details. The car came with comfortable leather seats and a large glass roof called a panoramic sunroof. For comfort, it had a three-zone air conditioning system so passengers could set their own temperature. The storage space in the back was 550 liters, which was plenty for family luggage. This model also included a 16-speaker music system for great sound quality. Overall, the interior focused on comfort and used helpful technology to make every drive better for the passengers.

The BMW X3 has a bold and clean look. At the front, the car has a large kidney grille with chrome borders. It has sharp LED headlights and LED daytime running lights that look very clear. The front bumper has large air intakes to help cool the engine. On the sides, the BMW X3 comes with 19-inch alloy wheels. Some versions even have larger 20-inch wheels. It has roof rails and a large panoramic sunroof on top. The back part of the car has slim LED tail lamps and two exhaust pipes at the bottom. This model is quite tall and has high ground clearance for Indian roads. It was available in colors like blue, black, and white. The M Sport trim looks more sporty with different body parts. Overall, the car looks like a strong and modern SUV.

The BMW X3 faced strong competition from several other SUVs in India. Its biggest rival was the Mercedes-Benz GLC, which many buyers liked for its comfort. The Audi Q5 was another major competitor that offered a very smooth driving experience. Some buyers also considered the Volvo XC60 because of its focus on safety and clean design. For those who wanted a car for rough roads, the Land Rover Discovery Sport was a top choice. The Lexus NX was also a rival, especially for people who wanted a hybrid engine. Most of these cars were priced between 65 lakh and 85 lakh rupees. Each model had different features and engine options. The BMW X3 had to compete hard against these 5 main rivals to find buyers in the Indian market.