The X5 has never been BMW’s wildest design, but it’s managed to avoid the extremes seen elsewhere in the lineup. Still, the oversized kidney grilles on the current model don’t do it many favors. They don’t sink the look entirely, but they certainly don’t flatter it either.

The good news is that a new generation is on the way, and early signs suggest a cleaner direction, along with a range of powertrain options that stretches well beyond what most would expect.

Read: BMW’s 2027 X5 Finally Shows Its Lights And What’s Hiding Inside

BMW has begun testing the upcoming X5, internally designated G65, and sent a prototype north to Sweden for winter trials. While still clad in camouflage, it’s already clear that the SUV will wear design elements from BMW’s Neue Klasse era.

Neue Klasse Meets X5

Like the second-generation iX3, the new X5 sports reworked headlights with sharply defined daytime running lights and a more technical front-end aesthetic. A gloss-black panel extends toward the center of the fascia, echoing the EV’s layout, and will house a pair of vertically oriented kidney grilles. Though still concealed by camouflage on this prototype, their shape is clearly visible beneath the surface.

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The rear end of the new X5 will also be a dramatic departure from the current model. It ditches the traditional taillights of the outgoing model and replaces them with thin, horizontal LED units that appear reminiscent of those used by the XM. This prototype also has a curvy rear spoiler stretching out above the window, adding to the striking new design.

Interior Changes

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The cabin is also in line for a thorough redesign. Recent spy shots have confirmed that the new X5 will adopt the same Panoramic iDrive setup as the iX3. This includes a narrow display spanning the base of the A-pillars, paired with a sharply angled central infotainment screen.

While the steering wheel on this prototype may differ from the iX3’s squared-off four-spoke unit, it looks likely to use a more conventional two-spoke design, with enough visual weight to stand out on its own.

Powertrain Options

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Beneath it all, the G65 X5 will continue to ride on BMW’s CLAR architecture, albeit in an updated form. This means a familiar chassis with enough flexibility to support combustion, hybrid, and electric variants without needing to reinvent the platform.

According to CarScoops sources, the combustion model will be sold in 40, 40 xDrive, 40d xDrive, 50e xDrive, M60 xDrive, and M60e xDrive forms. A potent X5 M version also seems inevitable. In addition to selling a slew of combustion-powered models, the brand will introduce an all-electric iX5 model, set to be sold in 50 xDrive, 60 xDrive, and M70 xDrive forms.

The powertrain options won’t end there. In addition to the gas, diesel, plug-in hybrid, and electric models, there could be a range-extended version of the iX5, dubbed the Rex, complete with a driving range of up to 621 miles (1,000 km). The new X5 will also be BMW’s first mass-market model available with a hydrogen fuel-cell powertrain.

After Porsche’s recent round of price hikes, it looks like BMW will soon follow suit. According to a report from CarsDirect citing a dealer bulletin sent this week, BMW will be doing the same in the new year.

While it didn’t explicitly point to tariffs as the cause, the timing does invite speculation for certain models, even if the biggest increase happens to hit a model built right in the United States, where tariffs aren’t the go-to excuse.

Also: Porsche Keeps Making Customers Pay For Trump’s Tariffs

BMW’s internal notice reportedly states that most vehicles in its range will see a price increase of roughly 1 percent, though not every model is affected. The adjustment will result in MSRP hikes ranging from $400 to $1,500 and will go into effect on January 1, 2026.

The most significant increases apply to the M5 Sedan and Touring, both up $1,400, and the BMW X6 M Competition, which will now cost an extra $1,500. Interestingly, the i4, i5, iX, i7, 7-Series, Z4, and XM are excluded from the price hikes.

This isn’t the first time that BMW has increased prices over the past six months. Back in July, it announced that the MSRPs of most 2026 models would rise by as much as 1.9 percent, resulting in price hikes of $2,500 for vehicles like the BMW X5 M and X6 M.

Those two models are built in the States, alongside other SUVs at the automaker’s South Carolina facilities. So technically, they shouldn’t have been impacted by tariffs, or at least not significantly, unless imported components factored in. As usual, the truth sits in a grey area.

For buyers looking to sidestep the latest round of price changes, it may be worth checking local inventory for cars already on dealer lots. Vehicles delivered before the end of the year are likely to carry current pricing.

Tariffs may have influenced BMW’s pricing for 2026, but the broader pattern raises more pressing questions. This is the second increase in just six months, suggesting something beyond routine adjustments.

Annual price bumps aren’t unusual in the auto industry, particularly with new model years. But those are usually linked to updates or added content, not blanket, across-the-board hikes with no clear explanation, and certainly not with this frequency.