Why are certain OEMs still not only offering diesel engines but launching new ones? Demand, in a word. ACEA’s round-up of all-Europe car sales for 2025 won’t be published until 27 January but going on what happened in the first eleven months, diesel was almost neck-and-neck with petrol PHEVs.
While there is no disputing a dramatic year on year fall in the fuel’s popularity, almost 10 per cent of all new passenger vehicles sold in EU and EFTA markets – plus the UK – were powered by compression-ignition engines. It will be interesting to see what happened in December, i.e. did diesel registrations go up or down?
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OEMs are investing in diesels again
Fiat has just announced its first new compression-ignition engine for a passenger car model in a long time (Qubo L, a renamed Doblò). Will other Stellantis brands follow? Let’s not also forget that German OEMs in general are yet to discontinue their own such cars and SUVs.
The Volkswagen Group has even developed a new six-cylinder engine with Audi the first brand to put it under the bonnet of its models. So while it costs a lot more to buy the fuel in many countries, the UK included, and charges for annual road tax are high, lots of people want a D or a d on their new car’s tailgate badge.
Not everybody loves how it looks; no matter
I asked BMW if there was a diesel-powered X7 on the press fleet and was glad that I did. Previous drives of this big Sports Activity Vehicle proved to me that it was far better to hustle around in than to look at, though my personal opinion is that the giant SAV looks just fine. Well, maybe the headlights and grille are a touch too aggro but there again, to me they work really well. The side profile is also very nice indeed, and the back end even better.
About the only thing seriously lacking from the German brand’s largest is boot space. Still, unlike the slightly shorter and PHEV-only XM, the X7 comes with a third row of seats. So if you want more space for luggage, just fold the back two. Problem solved.
Global sales: north of 40,000 in 2025
Large and in-charge it might be but the X5’s bigger brother isn’t the top model, that honour going to M division’s way more expensive SAV. Yet unlike its pricier brother the X7 is a really good sales performer. We’re talking close to 28,000 units in the USA for 2025, some 4,000 in China and a further 8,000+ in greater Europe. The relevant totals for the XM are nowhere near any of those numbers.
Combined, X7 and XM sales will equate to major margins, especially considering how much they share with the X6 and X5. Consider too the relatively low cost of building each within the same South Carolina plant.
Powertrains are imported to the US factory but even so, the X7 is probably the most profitable BMW presently in production. And it’s been around since 2018 so all development costs will have been repaid long ago.
Nobody in America wants a luxury brand diesel SUV
Customers in America can’t have the diesel engine, which is interesting, with GM also finding that demand wasn’t there for the rival Cadillac Escalade 600D. Duramax-branded, the capacity was the same as BMW’s latest 3.0-litre inline six whereas the Lexus LX 500d, another competitor, is a 3.3-litre V6. And…guess what, also unavailable in the USA.
The latest evolution of B57, which has previously been fitted with one, two or even four turbochargers, retains its 2,993 cubic centimetres capacity. Somewhat unusually, the block is aluminium and these days there are a pair of turbos.
For the as-tested xDrive40d, power and torque are 259 kW (352 PS) and 720 Nm. Put your foot down and those huge numbers become very real, even with unladen weight being an official 2,565 kilos. The test vehicle had more than GBP16,000 of options, lifting not only the mass but raising the price to almost GBP130,000. The ‘basic’ price without VAT, options and various charges is listed as GBP93,005.
Synthesised loveliness for the ears
For all that money you do get the feeling that the X7 diesel is something rather special. The mild hybrid system is amazing the way it helps to bring consumption down. And the 2025/2026 version of B57 is state of the art in every way. You hardly even hear its presence, unless seeking to: there is a Sport Plus button and this creates an almost V8-like burble. Utterly delicious.
A quarter of a century ago I can recall the first X5 (E53) struggled to average more than 30 mpg and this way bigger and heavier modern monster returned just short of 40 mpg over the week of my many drives in it. Motorway speeds, A/C on the whole time for keeping glass clear of condensation, passengers on board, none of my time at the wheel was spent trying to save fuel.
What’s next for the X7?
Will this model become part of the Neue Klasse? Yes and no. The successor is due to adopt certain aspects of the fresh family look, though it’s believed this does not include the narrow grilles of the new iX3. Instead, the wide air intakes of the existing shape will be evolved, if camouflaged prototypes seen on test in recent weeks are an accurate guide.
ICE engines will continue, though with more hybrids. Platform-wise, the base will again be CLAR and the codename is G67 (an Alpina is G69 and a G-Class rival is G74). The second generation model might be a major revamp of G07, in the same way that the F70 1 Series, announced 18 months ago, was the then five-years old F40 being given a makeover. Toyota has experimented with the same idea (e.g. Camry, Hilux) and look how profitable it remains.
Will anyone in Europe and the US want a giant electric SAV?
BMW is presently spending heavily on all manner of propulsion systems, and again the comparison with TMC is valid. Which other OEMs are as heavily invested in petrol, diesel, MHEVs, PHEV petrol, HEV, EREV, EV and hydrogen fuel cells as these two vehicle makers? Therefore, we should expect not only electrification in various forms but an iX7 too.
BMW will want to be ready with a vehicle in the 5.1-5.4 m long electric SUV segment. Even if it will likely only be relevant in China: a relative lack of interest in the EX90 (and not only by Americans) proves that Volvo’s trailblazing may have come a little too early for the US and other potentially big markets.
When it comes to other full-size electric SUVs, Volkswagen will soon be joining multiple Chinese car companies by launching the 5.2 m long ID. Era 9X. Not to mention the equally imminent and even lengthier Nio ES9. Hongqi, Zeekr, Mercedes, Audi, AUDI (E7X), Porsche, Range Rover, Cadillac and others…the list of brands either already offering such a model (e.g. Li Auto L9, Aito M9, Escalade IQ & IQL) or working on one goes on. And when it comes to ICE rivals, a new Q7 arrives later in 2026 with Audi also launching the even larger Q9.
Summary
Next generations of rival vehicles as well as the future X7 are a little way off as at right now, and none of these may have the overall appeal of today’s G07 series model. The petrol variants are faster than the still-rapid xDrive40d but having driven each of them there is a strong case to be made for the diesel. The massive level of torque, great power, amazing handling given the size and weight plus almost 40 mpg make a convincing case for this being the best X7 of all.
The BMW X7 xDrive40d has an 80-litre tank, a 152 mph top speed, will reach 62 mph in a claimed 5.9 seconds, seats seven and emits an official 215 g/km.
BMW & Mini NCAR Neue Klasse – future cars & codenames
