Is This the 2018 BMW X3 M40i Testing at the Nurburgring?

BMW is, of course, working on an X3 M as well. But that won't be ready for another year, whereas the camouflage from this Nurburgring test prototype is starting to come off. At the back, we notice two large rectangular tailpipes, similar to what we've seen on the recently revealed M550i.

The M Performance models are usually not as good as their true M counterparts. But this one should strike a really sweet balance. The M40i will likely be the first version of the X3 to be available in America while also completely replacing the old xDrive35i.

The engine will be matched exclusively to an AWD system and 8-speed automatic, as we don't even expect more than one or two manual version of the regular X3 to be offered.

Under the hood is a single-turbo 3.0-liter engine from the B series (likely the B58). It should produce somewhere between the 360 horsepower of the X4 M40i and 400 hp. Meanwhile the competition is using V6 units, like the one found under the hood of the GLC 43 or the Audi SQ5.

You'll be able to tell the M40i apart from the X3 M by looking at the muffler tips. We're surprised they didn't use round tips like on the current X4 M40i. But BMW isn't the only company to rewrite its own rule-book. For example, the SQ7 is the first S model to have trapezoidal tips and the SQ5, controversially, has fake ones. Regular X3s like the B48-equipped 30i will have the exhaust to one side of the body.

According to a recent report, the all-new G01 generation of the X3 will debut in June, and the M40i will be available in U.S dealerships this October.