By: Krish Persaud
July 10, 2025
The first-generation X2 was always a bit of a curveball in BMW’s crossover lineup. It stood apart from the more traditional X1, leaning into coupe-like styling with a lower roofline and a sportier stance. Now in its second generation, the 2025 BMW X2 M35i xDrive doubles down on that identity. Thanks to our friends at BMW Canada for providing our test vehicle for a week. This bold little crossover is longer, wider, and more visually aggressive than before, almost looking like a shrunken X4 with hot hatch proportions. While still based on a front-biased platform, this M35i uses BMW’s xDrive all-wheel-drive system to deliver confident traction year-round.
Under the hood, the X2 M35i uses BMW’s B48 engine, a 2.0-litre TwinPower Turbo inline-four producing 312 horsepower and 295 lb-ft. of torque. Power is routed through a 7-speed dual-clutch automatic transmission, and it’s one of the strongest points of the drivetrain. It’s smooth in traffic, quick when pushed, and responsive enough to make this compact crossover genuinely fun to drive. Acceleration feels brisk, with BMW quoting a 0 to 100 km/h time of 5.4 seconds. There’s little to no lag, and the power delivery remains consistent throughout the rev range. It’s surprisingly capable even with passengers and cargo onboard, never feeling short on power.
Inside, the X2 features BMW’s latest curved display running iDrive 9. It combines a 10.25-inch digital instrument panel with a 10.7-inch central touchscreen. While climate controls are now touch-based, there are still physical shortcuts for key media functions, including a scroll wheel for volume and track skip buttons on the centre console. Wireless Apple CarPlay and Android Auto are standard and worked flawlessly throughout our test. The system is fast and sharp, though like most newer BMWs, the learning curve can feel steeper at first compared to older iDrive versions.
On the road, the X2 M35i delivers composed handling and sharp reflexes. Steering is light but accurate, and the chassis stays flat through corners, offering confident grip even during spirited driving. The Adaptive M Suspension keeps the body in check and provides a sense of precision. That said, there’s a firm edge to the ride, especially on the 21-inch wheels. Over longer drives, rear-seat passengers began to comment on the stiffness, particularly over rougher pavement. While the setup feels tuned for enthusiast drivers, it may come across as less forgiving for those in the back seat.
Our test vehicle came equipped with the optional Harman Kardon sound system. It delivered solid clarity and decent spatial presence, though low-end output still left a bit to be desired at lower volumes. For most buyers, it’ll offer a satisfying upgrade over the standard system, even if it stops short of being truly immersive.
Fuel economy is officially rated at 10.0L/100km city, 7.8L/100km highway, and 9.0L/100km combined. We observed an impressive 7.8L/100km during our real-world spring test, which exceeded expectations given the available performance and all-wheel-drive system.
Pricing for the 2025 BMW X2 M35i xDrive starts at $60,400 CAD. Our test vehicle, finished in Skyscraper Grey Metallic with Coral Red/Black Veganza and equipped with the Premium Enhanced Package, M Sport Pro Package, Advanced Driver Assistance Package, and 21-inch Y-Spoke wheels, came to a total of $71,800 CAD before taxes and fees. For those who prefer the design without the added performance, the xDrive28i is also available at a lower entry point.
This second-generation X2 M35i feels far more complete than before. It’s no longer just about styling. It now has the powertrain, handling, and ride quality to match. For buyers who want something smaller than an X4 M40i but still fun and premium, the X2 M35i might be exactly the sweet spot they’ve been looking for.
Vehicle Specs
Segment: Subcompact performance crossover
Engine: 2.0L TwinPower Turbo inline-4
Horsepower: 312 horsepower
Torque: 295 lb-ft. of torque
Transmission: 7-speed dual-clutch automatic
Drivetrain: xDrive all-wheel drive
Fuel Efficiency (City/Highway/Combined): 10.0L/100km / 7.8L/100km / 9.0L/100km
Observed Fuel Economy: 7.8L/100km (mixed spring driving)
Wheels: 21-inch Y-Spoke 874M
Base Price: $60,400 CAD
As-Tested Price: $71,800 CAD