The new BMW R6 engines available across the rest of the BMW lineup were, as with the 2006 X5 and 2006 Z4, curiously absent from the 2006 X3. It is rumored that the X3 will not get the R6 until the all-new BMW X5 is released in 2007 which will include the R6 engine amongst other newer engines. The X3 will receive, however, redesigned monochromatic front and rear fascias to replace the flat black bumpers.

U.S. bound 2006 X3's were all equipped with a special version of the 'M' technik bodykit as standard. The difference being in that the U.S. cars had unpainted door sills and wheel arches. U.S. spec Sport Package 2006 X3's got the full 'M' bodykit (with painted front, side and rear plastic) available in the rest of the world as a BMW accessory.

2.5i was removed for sale from the U.S. market as this market tended to go more for the 3.0i model.

The new changes to the 2007 BMW X3 are now listed on the BMWUSA[1] home page. The 3.0si engine produces 260 hp (193.9 kW; 263.6 PS) and 225 lb·ft (305 N·m) torque, at a lower engine speed (2500 rpm). The front and rear fascia are changed, more closely resembling the X5 SUV. New LED lights and interior upgrades have also been introduced. The Cold Weather package includes heated seats in the front and the rear. Adaptive headlamps and a panoramic sunroof are available, as well as upgraded dashboard components and leather seating.

The 2007 X3 with the automatic transmission has received owner compliants for poor shifting and lack of throttle response. Search the web for X3 and transmission to find compliants posted on several websites and also check the concerns filed with the NHTSA. It should be worth noting however that many BMW forums have attributed the X3's poor shifting and lack of throttle response to faulty transmission software programming. The problem should go away by having the dealer reprogram the EGS with Progman V27.02.00 or higher.

Outside the North American markets, diesel sales dominate the X3 model mix. In Europe, the range starts with a 2.0 litre 4 cylinder petrol, a 4cyl. turbodiesel (the most successful derivative) and continues with 6 cylinder turbo & bi-turbo diesels. The range topper is the sport diesel with 286 bhp (213 kW; 290 PS). The X3 was in 2006 and 7 the best-selling AWD vehicle in the German market, an example of the reduced significance of off road capability in the segment. In the European markets, 'all-weather' capability has assumed far more significance than traditional wilderness hero Jeep/Land-Rover sense of SUV in the expansion of the X3 and its rival's sales.