BMW is to launch its first diesel sedan in Australia, according to local website The Red Book.

The 530d is due to go on sale there by the end of the year, the report said.

The Australian 530d will have a more powerful version of the 3.0-litre inline six-cylinder turbo diesel that powers the X5 3.0d, which successfully pioneered turbo-diesel technology for BMW Australia, The Red Book said. It will develop 160kW (10kW more than the oil-burning X5) and 480Nm of torque (the same as that offered by the Australia-specification X5, but down on European versions).

The report noted that the 530d won't be priced lower than its petrol-powered sibling, unlike the X5 3.0d at introduction. At $A113,500, the 530d sedan will instead have a $A4,700 premium over its three-litre petrol stablemate, The Red Book added.

The report also said that BMW Australia has announced the same engine will also be made available Down Under in the X3 SUV.