Slow-selling BMW XM goes V-8 only for the USA

Updated 2026 BMW XM

BMW has given its divisive and slow-selling XM a minor makeover for 2026, streamlining the model range to leave just one variant. 

Thankfully, BMW has retained the XM Label as the surviving version, meaning the large SUV is now solely V-8 powered. 

The XM Label remains the most powerful street-legal vehicle ever produced by BMW’s M department, thanks to its plug-in hybrid powertrain. 

BMW chose the 24 Hours of Le Mans endurance race to launch the updated XM, reflecting the sheer performance offered by its flagship SUV.

Hybrid V-8 for the XM Label

Updated 2026 BMW XM

The XM Label’s twin-turbocharged 4.4-liter V-8 engine is left unaltered, producing 577 horsepower and 553 lb-ft of torque by itself. When combined with the electric motor, total output is pushed to 738 horsepower and 738 lb-ft. 

With a standard eight-speed automatic transmission and all-wheel drive, the XM Label can accelerate from 0-60 mph in just 3.6 seconds. That is despite the luxury SUV weighing almost 6,100 lb.

The XM Label is restricted to a top speed of 155 mph. However, choosing the optional M Driver’s Package increases this limit to 175 mph.

BMW has also upgraded the XM’s onboard charging unit for the 2026 model year. This can now charge the battery from AC charging devices at up to 11 kW, up from 7.4 kW previously.

Heading for production this summer

Updated 2026 BMW XM

For the exterior, BMW has revealed a new Frozen Tanzanite Blue metallic paint color, along with the option of 23-inch M alloy wheels in a Jet Black finish.

There are three new interior leather color combinations for the 2026 XM, too. Customers can pick from Night Blue or Black with Vintage Coffee accents, or Silverstone with Black accents. 

As before, the XM will be built at BMW’s North American manufacturing site in Spartanburg, South Carolina. The first models will begin leaving the production line in August 2025. BMW is due to confirm prices in the interim. 

At present, the 2025 BMW XM Label costs $186,700. But the vehicle’s poor sales performance means this 2026 version is unlikely to be significantly more expensive.

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