By: Krish Persaud
September 20, 2026
The BMW M240i has always occupied an interesting place in the lineup. It sits below the full-fat M2, carries a less intimidating price tag and asks for fewer compromises, yet it still packs one of BMW’s best engines into a compact rear-drive-based coupe. The 2026 BMW M240i xDrive takes that formula and makes it remarkably difficult to argue that most drivers actually need anything more.
Our tester certainly helped make the case. Finished in Thundernight Metallic over Oyster Vernasca Leather with contrast stitching, it had enough colour inside and out to separate it from the endless stream of black, white and grey German coupes. The proportions remain classically BMW, with a long hood, short rear deck and just enough aggression to look special without trying too hard.
Under the hood sits the real reason the M240i continues to be such an appealing package. BMW’s 3.0-litre TwinPower Turbo B58 inline-six produces 382 horsepower and 369 lb-ft. of torque, and the engine feels every bit as good here as its reputation suggests. Power delivery is smooth, immediate and strong across the rev range, with more than enough shove to make the M240i feel properly quick without turning every drive into an exercise in restraint.
Our car also carried the $3,000 M Performance Exhaust, and it suited the personality perfectly. There was no annoying highway drone, but enough sound when pushed to make every hard acceleration feel like an event. BMW’s IconicSounds add some extra theatre inside the cabin, and turning them off noticeably removes some of that interior soundtrack. Even without the electronic assistance, though, the B58 and M Performance Exhaust remain a combination we happily listened to all week.
It is not quite the same experience as BMW’s S58. The M2’s engine feels angrier, more dramatic and more obviously bred for serious performance. The M240i is smoother and slightly more restrained by comparison, which is where the familiar “M-lite” description starts to make sense. That does not mean it feels watered down. If anything, the M240i makes a strong case that a little restraint can be a very good thing.
The chassis backs that up. Our tester came equipped with the M Enhanced Track Package, which added 19-inch 893M wheels, Adaptive M Suspension, larger 374-mm front brake rotors, a dedicated engine oil cooler, high-performance tires and the M Technology Package.
On the road, the M240i felt planted and confident, yet it could still be tossed into corners without feeling reluctant or overly heavy. Grip was never something we found ourselves questioning, and the car remained composed when pushed harder through bends. The steering carries enough weight to inspire confidence, while xDrive helps make all of the B58’s power feel usable rather than intimidating.
The Adaptive M Suspension also struck a good balance for Ontario roads. It is still a performance coupe and never tries to disguise that fact, but the ride never became something worth complaining about. That matters because the M240i’s appeal is not simply how fast it can cover a back road. It is how easily it can settle back down once the fun is over.
That everyday usability extends farther than expected. We managed to fit a rear-facing child seat in the back, although getting a child in and out quickly became a mission. It required some patience and flexibility, but it was doable, and we lived with it during the test. Once the seat can face forward, life in the back of the M240i would become considerably easier.
The Oyster Vernasca Leather also gave the cabin a more upscale feel than the usual all-black performance-car interior. Our tester’s Premium Enhanced Package added Adaptive LED headlights, Harman/Kardon audio, Digital Cockpit Professional, a head-up display and augmented-reality navigation, while Parking Assistant Plus added Surround View.
The biggest thing missing was something BMW does not offer here at all: a manual transmission.
That became more obvious after spending time in a manual M2. The S58 undoubtedly brings more drama, but the manual gearbox also adds another layer of involvement that the M240i cannot quite replicate. The interesting part is that we did not spend the week wishing the M240i had more power. The B58 already feels perfectly suited to this chassis.
That leaves a more interesting question. Does this car really need a more aggressive engine, or would a manual B58 M240i be the actual sweet spot?
After a week with it, we would happily take the latter.
Price complicates the conversation slightly. The M240i xDrive starts at $62,900, but our heavily optioned tester climbed to $80,350. That included the $5,200 Premium Enhanced Package, $900 M Sport Pro Package, $3,500 M Enhanced Track Package, $3,000 M Performance Exhaust and several individual options.
At more than $80,000, the M2 naturally enters the conversation. The full M car offers more aggression, a more serious engine and, crucially, the option of a manual gearbox. The M240i answers by being easier to live with while still delivering enough performance to make almost every drive entertaining.
That is what makes the 2026 BMW M240i xDrive so convincing. It does not need to pretend to be an M2 because the B58, xDrive chassis and everyday usability already create an excellent performance coupe on their own. The only thing we kept wishing BMW had added was a third pedal.
Give this car a manual and the argument gets a lot harder.
