2023 BMW X1 Review: The Perfect First Luxury Car

The 2023 BMW X1 is pudding-grade proof of the auto industry’s marriage to crossovers. Once upon a time, a young professional on the make would have proudly purchased an entry-level German sedan as a status symbol. Now, it’s the X1’s job to snare those same buyers. The world has turned and left us here.

The X1 is aptly named as the entry-level model in a series of crossovers that now extends all the way to X7. As buyers grow in wealth, they can climb up to ever-higher-numbered vehicles, stepping over to the even numbers for a sportier experience. And yet, despite being the smallest starter model of the range, the X1 feels like anything but. It delivers a killer combo of street-ready good looks, day-to-day practicality, and premium materials that make it shine over the less-polished competition.

[Ed. note: The BMW X1 is available in the U.S. the xDrive28i or M35i xDrive, but the models driven here were the Australian-market xDrive20i and sDrive18i.]

2023 BMW X1 xDrive28i Specs

• Base price: $39,595

• Powertrain: 2.0-liter turbo inline-four | 7-speed dual-clutch automatic | all-wheel drive

• Horsepower: 241 @ 4,500 to 6,500 rpm

• Torque: 295 lb-ft @ 1,500 to 4,000 rpm

• Curb weight: 3,750 pounds

• Seating capacity: 5

• Cargo volume: 25.7 cubic feet (57.2 cubic feet with seats folded)

• Fuel economy: 25 mpg city | 34 highway | 28 combined

• Quick take: A super-fresh luxury SUV that delivers on the premium look and feel.

• Score: 8/10

The Basics

The X1 is BMW’s subcompact luxury SUV. By virtue of its body style, it’s more aspirational for the average buyer than the company’s sedans and coupes. The tall stance and big greenhouse simply convey more status than a 2 Series coupe or 3 Series sedan. Realistically, that’s what a lot of first-time buyers are looking for in the X1. It’s a striking crossover that tells friends, family, and colleagues alike: I’ve arrived.

The very design of the vehicle feeds into this role. The X1 is no stranger to peacocking. It sucks you in with those enormous chrome nostrils. It’s not ashamed. It’s brash, wearing a bold orange or a rich, enchanting green. It’s ready to stunt on the rest of the parking lot, packed with silver Subarus and tired black Toyotas. 7 Series buyers are the kind of money that doesn’t beg attention. An X1 buyer is likely making their first purchase from the luxury marque, and they’re going to want it noticed.

Inside, BMW has done the work to ensure the X1 feels like a step up from regular economy SUVs. It’s not so much in the interior layout itself; virtually every new car has some kind of high-res digital cluster and infotainment screen available. Instead, it’s all about materials, controls, and touchpoints. The X1 can be optioned in a variety of nice leathers, including an intoxicating chocolate brown. It’s a color palette from the 1970s, except somehow here it’s actually good. Combine it with the eucalyptus wood trim on the dash, and the ambient lighting system? It’s exotic. It’s like stepping into one of those ultra-modern organic health spas, awash in lush woods and fancy lighting. Only it’s a car. Oh, and the volume knob has the kind of knurling that machining YouTubers use to show off to each other. Enjoy it, it’s glorious.

In the U.S., the base X1 xDrive28i is fitted with a 228-horsepower turbocharged 2.0-liter inline-four while the higher-performing M35i also uses a four-cylinder, but there it's making 312 hp—the most powerful four-cylinder in the BMW lineup. That said, the American market does miss out on diesel, hybrid, and electric versions of the X1 sold overseas.

Here in Australia, for example, the base sDrive18i is available with a 1.5-liter turbocharged inline-three. With 156 hp, it sends power to the front wheels only. Stepping up from there, the xDrive20i gets a 2.0-liter turbocharged four good for 204 hp paired with all-wheel drive.

Between the two Australian models, though, the front-wheel-drive version is more than adequate. Unless you’re living high up Mount Buller, or you really love driving on the beach, the all-wheel drive really isn’t necessary, and you won’t miss the added power.