What's the difference?
BMW’s original X2 crossover from 2018 was not a massive sales success in Australia. The related X1, however, was and continues to be a very popular pick in the ultra competitive premium small SUV class.
BMW has flipped the script for the second-generation X2, giving it a dramatic makeover that ushers in a bold design that’s now in keeping with its SUV strategy. That is to offer a ‘conventional’ SUV - X1, X3 and X5 - and then a coupe-style sibling - the X2, X4 and X6 - to sit alongside it.
Beyond the new look there are significant changes throughout the car, including the introduction of an all electric version - the iX2.
We drove the two flagship grades at the international launch in Lisbon, Portugal - the petrol-powered M35i xDrive, and the iX2 xDrive30. They might look the same, but they maintain their own distinct characters. Let’s dive in…
BYD has achieved much success in recent years in Australia and it's now branching out with a new, more premium brand.
Denza is like the Lexus to Toyota and it’s launching in Australia with two large body-on-frame plug-in hybrid (PHEV) SUVs – the B5 and B8.
The former is on test here and its rivals include mainstream models like the GWM Tank 300 PHEV, however it also pitches itself against more premium offerings like the Land Rover Defender.
We’ve already driven the B5 over in China and this is the first time we’re getting to test it out on Australian roads, so let’s see how it fares.
There is little doubt the new X2 represents a vast improvement over the original model. The design alone gives it a lot more presence.
More interior and boot space also helps widen the SUV’s appeal and the significant tech updates are welcome.
It is on the pricey side and there are a few too many options that should be standard.
However, the M35i is hard to ignore as a sporty premium crossover, and the iX2 xDrive30 is the sort of electric SUV that should worry Volvo.
They both have their own distinct flavours, so there’s no dud in this line-up. Of course, we will hold final thoughts for the local launch when we can drive all four grades. But until then, it’s a welcome return to form for the X2.
Denza has made a huge statement with the B5 and for the most part the hype is deserved. It packs an incredible amount of luxury and tech inside and out which is even more surprising given the impressive asking price.
There are only a few flaws like the busy ride, over-the-top body roll and the occasional infotainment quirk. Hopefully these can be fixed with future over-the-air software updates.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
The second-gen X2 looks very different to the original from 2018. That first X2 had a squat stance, looked more like a hatchback than an SUV, and the glasshouse appeared as though it had been squished into the body of the car.
The 2024 X2 adopts a similar design philosophy to the X4 and X6 - swoopy, coupe-like roofline and liftback, and bold styling elements at the front and rear.
It has a much more upright, flush front end, freshly designed large kidney grille and an edgy headlight design. There’s flared wheel arches and broad shoulders at the rear, as well as a cool new horizontal tail-light signature.
The X2 has grown in size in a big way. It’s 194mm longer, 21mm wider, and 64mm taller than the outgoing model. That naturally means more space inside, too.
Inside there are big changes. The X2 adopts elements introduced by the excellent iX SUV a couple of years ago. They include the curved display, and a floating arm rest with a control panel. Some of this is also familiar from the X1.
The materials mostly look and feel like they are high quality, and there is an appealing minimalism to the overall design and layout. The chunky sports steering wheel is visually appealing, but it’s a bit too thick in my hand.
It’s worth calling out straight away that the Denza B5 is essentially an SUV version of the BYD Shark 6 as the two share underpinnings, but it’s much more luxurious and blingy.
Externally it has a big, boxy and bluff design that helps it stand out on the road. It looks even tougher when the suspension is in its lifted mode.
I particularly like the front fascia with the big headlights and the prominent Denza badge on the grille, but there are some strange body creases around the side.
While the boxy looks make the B5 stand out, it’s not necessarily unique. There are elements that are reminiscent of the Land Rover Defender, plus many angles look similar to the GWM Tank 300.
Inside is where the luxe is dialled to the max. There are so many soft touches around the cabin that it makes a lovely place to spend time.
Additionally there is a lot of high-quality physical switchgear which is surprising given how prominent the large 15.6-inch central touchscreen is.
Lastly, I like how substantial many of the finishes are. There are large grab handles on either side of the dashboard which you do need to use to hoist yourself into the cabin, plus chunky interior door handle pulls that are satisfying to use.
Where the previous X2 was a very small crossover with niche appeal, the increase in size for the new model means more people will be interested in it. Possibly even people with a small family.
Those increased dimensions pay dividends inside, with ample headroom up front and more than enough space across the front row, although the raised armrest console is somewhat narrow.
The seats in both the iX2 xDrive30 and the M35i xDrive are very supportive thanks to ample bolstering, but both were also on the firm side. The iX2’s synthetic leather was slightly more comfortable than the M35i’s sports-focused front seats.
The power-adjustable seats and height- and reach-adjustable steering wheel means it’s not hard to find a decent driving position, but forward vision is impeded by a very thick A-pillar, and the letterbox-like rear windscreen in the X2 means rearward vision is limited. Good thing it has excellent parking cameras and sensors.
Storage is decent in the X2, with room for big bottles in the door cavity, and a few nooks and large open spaces in the console. Although secure storage is limited with the armrest housing a very shallow space. I do like BMW’s phone charger setup. Rather than lying on a pad, it slots into a vertical holder that has a latch to keep it in place when cornering. The only drawback is that you can see the screen which could potentially distract some drivers.
The X2 introduces operating system nine to iDrive, which is housed in the central part of the curved display and operated by touchscreen or the controller on the floating central console. After some familiarisation, the functionality isn’t that much different to the previous version of the operating system. The main menu looks cool and is mostly easy to navigate. The sub-menu icons - of which there are heaps - look a little Microsoft Windows.
The X2 has drive modes that also interact with the interior of the car and change lighting, EV noise and more. They include Personal Mode, Sport Mode and Efficient Mode as standard, but if you opt for (and pay extra for) BMW Digital Premium, the modes extend to Expressive Mode, Relax Mode and Digital Art Mode. Some of these are quite cool, especially some of the EV sounds, but would I use them everyday? Probably not.
The clearest indication of increased space is in the second row. There’s much more legroom than the old X2, and behind my six-foot frame I had enough space with a couple of centimetres between my knees and the front seat backs. Toe room was very limited, however.
The roof has been scalloped out to ensure more headroom, which is welcome given the extra sloping roofline.
There are a pair of USB-C ports back there, lower air vents, map pockets, decent door storage, and a centre armrest with cup holders.
The boot is sizeable, in both engine grades but you only get a tyre repair kit. There is underfloor storage for the charging cables in the iX2.
At 560 litres with all seats in place and 1470L with the second row stowed, the petrol grades have a bit more space than the iX2 at 525L (all seats in place) and 1400L (second row lowered).
Many Chinese cars have lots of bling but lack actual substance when it comes to comfort and usability. This is where the Denza differs.
Take the driver’s seat, for example. In a number of Chinese cars they look plush and comfy, but in reality they are firm after longer drives and lack adjustability.
The B5’s driver’s seat, however, is very comfortable, offering almost limitless adjustment, plus heating, ventilation and even a massage function as standard. The latter is great for longer road trips.
Ahead of the driver the steering wheel has plenty of adjustment, allowing people of different heights and statures to get comfortable behind the wheel. There are also lots of physical buttons and switches that have a satisfying click when pressed.
The digital instrument cluster is high-resolution and clear, and there's a number of different informative pages that you can cycle through. It’s nice to have this level of customisation.
Moving across, the aforementioned 15.6-inch touchscreen multimedia system dominates the dashboard. If you’re familiar with the user interface in other BYD vehicles, it’s virtually identical in the B5.
It’s very easy to navigate around and if you do get lost there are a number of shortcut buttons at the bottom of the screen that can either take you back home or to other key functions.
One of my favourite features about the screen is the swipe-down control centre menu. You can customise it to have key shortcut functions. It’s much better than having to dig through countless submenus.
It’s clear Denza still has a few kinks to iron out with the translations from Chinese to English as some don’t make sense. Denza will likely sort this with future software updates.
As standard there is wireless Apple CarPlay and Android Auto and it takes up the full screen when connected. It’s a stunning set-up, though reaching the far left-hand side of the screen from the driver’s seat can be a little tricky on the move.
As I touched on earlier, there is a lot of physical switchgear around the cabin which is helpful as you don’t need to solely rely on the touchscreen for key functions. The piano key buttons for the drive and EV/HEV modes are particularly handy, plus the rising gear shift lever is premium-feeling.
In terms of storage up front, there are up to two 50W wireless chargers (depending on the variant you opt for) with ventilation, two cupholders with adjustable depths, some shallow storage under the centre console, plus a fridge/hotbox under the centre armrest.
Moving to the second row there is plenty of space for at least two adults to sit comfortably. Pushing it to three may be a little tight with shoulder room, plus the centre seat is raised compared to the outboard ones. It’s worth noting though that there is a flat floor so you don’t need to fight for foot space.
Second-row amenities include chunky grab handles for easy ingress and egress, air vents on the back of the centre console, as well as heated and ventilated outboard seats in the top-spec Leopard trim. It’s properly luxe.
At the back the tailgate is side-hinged which can be problematic if you reverse into a carpark as you need to allow for space for it to open up. It has a soft-close function which is handy as you don’t need to slam it shut.
There’s 470L of boot space with the rear seats upright, expanding to around 1000L when folded. It’s a decent amount of space and is square with a very minimal load lip.
Amenities include a 12V socket, a wide array of hooks and nets, as well as a small storage space under the boot floor for the charging cables.
Lastly the B5 comes with a full-size spare wheel mounted on the tailgate. This is becoming increasingly rare in electrified vehicles and is very handy if you have a puncture.
In Australia, there will be four X2 grades in total - the xDrive20i and M35i xDrive petrol models, and the iX2 eDrive20 and xDrive30 all-electric models.
The iX2 xDrive 30 and the two X2 petrol grades are expected late in quarter one, or early in quarter two. The iX2 eDrive20 will follow shortly after in the third quarter.
The model grades largely mirror that of the X2’s mechanical twin, the X1, although the X1 is also offered in base front-wheel-drive sDrive18i guise as a range-opener.
At the international launch event, the two grades available to drive were the iX2 xDrive30 and the X2 M35i, so I will focus on those two models when it comes to the driving and practicality sections of this review. But I will detail elements of the whole range in other sections.
That X2 xDrive20i kicks off the range from $75,900 before on-road costs. For that you get features like a leather sports steering wheel, dual-zone automatic climate control, satellite navigation, an automatic tailgate, 19-inch alloy wheels, four USB-C ports and more driver-assistance systems and digital services compared with the previous model.
The $92,900 X2 M35i xDrive adds an extra dollop of performance but also includes 20-inch alloy wheels, a 12-speaker Harman/Kardon sound system, leather upholstery, a panoramic glass roof, a BMW M body kit and more.
The most affordable iX2 is the eDrive20 that kicks off at $82,900, while the iX2 xDrive30 dual-motor all-wheel-drive is $85,700. Both of these currently fall under the luxury car tax threshold at the time of writing.
There are several individual options and options packages across the range that can quickly push these prices up.
The X2 is a bit more expensive than the equivalent grades of the X1. The X2 xDrive20i costs $5500 more than the same X1 grade, while the M35i is only $2000 dearer than the equivalent X1.
For the EV, the X2 price premium is $4000 for the eDrive20 and just $800 for the xDrive30.
When it comes to rivals, pricing is a little higher than similar swoopy small SUVs like the Audi Q3 Sportback when it comes to the petrol models.
For the EV, competitors include the Lexus UX300e ($79,990-$87,665), Mercedes-Benz EQA (from $82,300-$102,579), and the Volvo C40 Recharge ($78,990-$87,990).
The 2026 Denza B5 is offered in two trim levels – entry-level and the top-spec Leopard. Pricing for the former is $74,990 before on-road costs, while the latter is $79,990 before on-road costs.
This is very competitive and it undercuts many top-selling rivals like the diesel-powered Toyota Prado and Ford Everest by a significant margin if you want similar levels of specification.
It’s worth noting however, the GWM Tank 300 PHEV, which is the B5’s closest rival in terms of powertrains, is even cheaper at $59,990 drive-away.
As a base, the B5 is loaded with standard equipment. You get 18-inch alloy wheels, adaptive LED headlights, a glass panoramic sunroof, 12.3-inch digital instrument cluster, 15.6-inch touchscreen multimedia system, 16-speaker Devialet sound system, leather upholstery, heated and ventilated front seats with a massage function, plus heated outboard rear seats.
If this isn’t enough, the B5 Leopard gets larger 20-inch alloy wheels, adaptive hydraulic suspension, a digital rear-view mirror, a second wireless phone charger, Nappa leather upholstery and ventilated outboard rear seats.
This amount of standard equipment is wild, especially because the asking price is firmly below $100K.
Each of the four grades come with a different powertrain, and the xDrive20i kicks it all off with its 2.0-litre four-cylinder turbocharged petrol unit, making 150kW of power and 300Nm of torque. It drives all four wheels via a seven-speed dual-clutch transmission and can hit 100km/h in 7.4 seconds.
The xDrive M35i ups the fun factor with a gruntier 2.0-litre four-cylinder turbo-petrol unit, driving all four wheels via the same transmission as the 20i, all while delivering power and torque of 233kW/400Nm This ensures a 0-100km/h dash of 5.4 seconds.
The iX2 eDrive20 is powered by a 150kW/247Nm electric motor on its front axle, and the iX2 xDrive 30 uses two motors - one on the front and one on the rear axle for all-wheel-drive traction. The total system output is 230kW and 494Nm and the xDrive30 gets to 100km/h in just 5.6 seconds.
Power comes from plug-in hybrid set-up combining dual electric motors (one on each axle) and a 1.5-litre turbocharged four-cylinder petrol engine.
It’s a similar set-up to the BYD Shark 6, but the B5 has more power. Total system outputs are a meaty 400kW and 760Nm, which is good for a claimed 0-100km/h sprint in just 4.8 seconds.
Power is sent to all four wheels and for added peace of mind off-road there are front and rear mechanical diff locks as standard, plus a wide range of drive and terrain modes, including a low-range mode.
Backing this up is a 3000kg braked towing capacity and up to 600kg of payload.
A fuel-use figure for the xDrive20i is yet to be confirmed, but the front-wheel-drive sDrive20i offered in Europe with a three-cylinder engine sips as little as six litres per 100 kilometres on the combined cycle. Expect the Australian version to be a little higher than that given it’s AWD and has a more potent engine.
The M35i consumes 7.7L/100km.
The high-voltage 64.8kWh lithium-ion battery in the iX2 ensures a driving range on the WLTP cycle of between up to 477 kilometres in the eDrive20 and between 417 and 449km for the xDrive30.
The latter has an energy efficiency range of 16.3 to 17.7kWh/100km, and BMW says you should be able to top up the battery from 10 to 80 per cent in 29 minutes at a fast charging station.
That driving range is not bad compared with the Lexus UX300e and Peugeot e-2008, but not quite as impressive as the Volvo C40 twin-motor.
I missed out on checking the energy efficiency figure of the iX2 xDrive30 following our drive, but after an 88km drive loop, the iX2’s range had dropped by 91km, which is just a 3km difference.
Feeding the electric motors is a 31.8kWh lithium iron phosphate (LFP) Blade battery which Denza claims to allow the B5 to travel up to 100km on electric power alone, according to NEDC testing.
There’s also vehicle-to-load (V2L) capability with 6.6kW output through the charging port using an adapter. This allows you to use the battery charge to power appliances. It’s handy if you go camping, for example.
The battery can be AC charged at rates up to 11kW or DC fast-charged at rates up to 100kW.
There’s also an 83L fuel tank. Denza claims the B5 has a total range of 975km, according to NEDC testing.
Fuel consumption depends on whether or not you charge up the battery. Denza claims you’ll use 1.9L/100km from 100 to 25 per cent battery charge and 9.5L/100km under 25 per cent battery charge, both according to NEDC testing. Regardless, this is better than similarly sized diesel-powered SUVs.
The M135i xDriveis undeniably quick off the mark. The lovely 2.0L turbo engine is well matched to the seven-speed dual-clutch and it’s responsive and willing from a standing start and when overtaking.
The engine sounds lovely too, although we suspect it’s amplified in the cabin, and steering is as sharp as it should be in a warmed-up performance SUV. We darted through some very twisty roads outside Lisbon and had quite a lot of fun in the process, so the M Performance badge is justified.
I drove the previous-generation X2 M35i a few years back and was disappointed with the ride quality. It was quite jiggly on uneven road surfaces and way too firm.
While the new version still has a firm tune to aid dynamic driving, it is much more compliant than the old car and overall ride comfort has improved.
The iX2 is also quick off the mark and in xDrive30 guise is only 0.2sec slower to 100km/h than the M35i.
That lively, smooth EV acceleration is present here, adding a sense of fun to the iX2.
It too has sharp steering, and the cabin is hushed. Not just because it’s an EV either. We were on coastal roads on a windy day and there was only a hint of wind noise in the cabin.
In some instances taking corners that had typical European walls or houses right up against the road, the iX2 would slow before I had a chance to tap the brakes. But it was hard to tell if that was a vehicle safety function, or the regenerative braking.
The ride in the iX2 was a bit of a mixed bag. It coped with some of the pockmarked roads exceptionally well, soaking up the imperfections. But then on other roads it was a little choppy.
It also bounces a little when you go over speed bumps, but that’s not exclusively an iX2 trait. I’ve felt it on many an EV, given the placement of the very heavy battery packs under the floor.
On the driving tech front, the X2 has a well executed head-up display projected directly onto the windscreen. It includes the speedo of course, nav guidance, a crystal clear display and more info.
Behind the wheel the Denza B5 primarily operates as an electric vehicle (EV) first up, meaning it’s largely quiet inside the cabin when driving around normally.
Once the charge starts to drop, the petrol engine typically switches on to top up the battery. It largely acts as a generator and a lot of the time you can’t actually tell whether it’s on or off.
In some cases where you floor the throttle or go up a steep hill, the engine revs can flare and that’s when it makes its presence known in the cabin.
When the battery charge gets down low enough and you gun it, the petrol engine can directly power the front wheels. This is rare though because the car purposefully leaves at least 25 per cent battery charge in reserve.
With 400kW and 760Nm thanks to the combination of the dual electric motors and the 1.5-litre turbo-petrol engine, the B5 absolutely hauls. The peppy feel is largely due to the instantaneous torque the electric motors provide.
However, in the standard drive mode there is a noticeable input lag from when you push the accelerator a bit harder and when the car actually accelerates. This is reduced in the sport drive mode.
Despite the juicy outputs, the B5 does feel its weight. When you accelerate hard it pitches back extensively, much like the Jeep Grand Cherokee Trackhawk. This never failed to make me smile though.
It’s surprising as we only drove the top-spec B5 Leopard on this launch and it comes fitted with the DiSus-P adaptive hydraulic suspension system which has a self-levelling function.
In the bends the B5 gets a considerable amount of body roll regardless of the drive mode. This is common for many Chinese cars as they typically prioritise floaty comfort-oriented tunes over a firmer and more dynamic-feeling ride.
Despite this, once it leans over it’ll comfortably hold and grip, largely thanks to the chunky 275/55 R20 Pirelli Scorpion tyres that come standard on the top-spec Leopard trim.
Like many body-on-frame vehicles, the ride gets busy on harsher roads with more frequent bumps. As a passenger you can get jostled about in the cabin.
The steering, while direct enough, can have a vague and artificial feeling. Depending on the drive mode it either artificially adds or reduces the resistance.
Unlike the related BYD Shark 6, the B5 gets a low-range mode which uses a clutch pack on the rear electric motor to allow for more controlled low-speed crawling, plus front and rear mechanical diff locks. This can make a big difference once the going gets really tough.
Additionally, the DiSus-P hydraulic suspension allows for a total of 140mm of travel. In the highest position there’s a wading depth of up to 790mm.
Lastly in terms of noise, vibration and harshness (NVH), the B5 is a very quiet car to drive. As I mentioned above, the electric-first nature automatically makes this a quiet car.
There is very little road and wind noise. This is surprising as the B5 is essentially a 3.0-tonne box on wheels. It seems Denza has put a lot of effort into sound insulation.
The X2 and iX2 are yet to be crash tested by ANCAP or Euro NCAP for that matter.
As mentioned, it gets a more generous list of standard safety features than its predecessor. Features include the latest version of BMW’s front collision warning system, auto emergency braking, speed limit detection, active pedestrian protection and a front centre airbag.
All X2s come standard with BMW’s Driving Assistant Professional which features ‘Steering and Lane Control System’, adaptive cruise control with stop and go braking function, and a blind-spot monitor, as well as Parking Assistant Plus with a surround-view camera, reversing assistant and ‘Drive Recorder’.
The Denza B5 received a five-star ANCAP safety rating based on testing conducted in 2025.
As standard there are 11 airbags, autonomous emergency braking (AEB), blind-spot monitoring, front and rear cross-traffic alert, adaptive cruise control, a driver attention monitor, front and rear parking sensors, plus a surround-view camera.
While a number of the active safety systems operate well and only intervene when required, some are intrusive and over the top. The worst offender is the driver attention monitor which struggles to detect your eyes with sunglasses on, plus only requires a brief glance at the touchscreen to get it saying, “Tiredness detected, please take a rest”.
Thankfully you can turn this off using the touchscreen with the handy swipe-down control centre menu, but it needs to be done every time you drive the car.
The X2 range is covered by BMW’s five-year, unlimited kilometre warranty - something the German giant only increased from three years back in 2022. This is now the minimum standard.
The battery warranty for the iX2 is eight years or 160,000 kilometres.
BMW does not have scheduled servicing terms, instead, servicing is condition-based and the car’s computer will alert the driver when to book in for a service.
A five-year servicing package will cost you $3171 for the petrol X2s, while the iX2 is $2186 for six years.
Denza B5 owners are covered by a six-year, 150,000km warranty, whereas the high-voltage battery is covered for eight years or 160,000km. Owners also receive three years of roadside assistance.
This warranty length is fairly standard in the mainstream segment, but in the luxury segment it pushes past the current five-year benchmark.
Logbook servicing is required every 12 months or 20,000km, whichever comes first. The first five years of servicing totals $3542, which averages out to just over $700 per service. This does seem like a lot, but in the premium space this is rather competitive, especially once you consider both the electric and combustion components are being serviced.
There are currently seven Denza dealers around Australia and it plans to have a total of 20 by the end of 2026. It’s also planning to allow certain BYD dealers to service Denza cars.