What's the difference?
BMW’s new XM is a tricky customer to pigeon-hole. Yes, it’s a huge, super-lux SUV and, yes, it’s all-wheel drive and features a station-wagon layout.
But it’s also a M-car and that infers super high performance. Weighing in one the wrong side of 2700kg, however, makes that a difficult task for any engineer.
This car also left us wondering if perhaps the glory days of M Division sports cars and coupes might behind it and SUVs like this one represent the road ahead.
But fear not: The CEO of M Division himself, assured us that the XM is a showcase for what an M badge can do, rather than a mission statement for the brand.
So, with that in mind, does this car have the wow factor that places it somewhere between peak oligarch and a motor-show concept car? Does it move the goal posts for big luxury SUVs? Does it even matter that it’s a plug-in hybrid?
Back in 2010, Mitsubishi released Australia’s first mainstream electric vehicle (EV) in nearly a century.
That model, the i-MiEV, was a four-seater city-sized Kei car from Japan that cost $48,800, before on-road costs, or from roughly $70,000 in today's money. Little wonder it bombed. That was four times more than petrol-powered equivalents of the time.
Now, in 2026, the new BYD Atto 1 is the first EV sold here since the i-MiEV’s 2013 departure to be considered a four-seater city car.
It’s also the least-expensive EV money can buy, being even cheaper than many internal-combustion engine alternatives like the Mazda 2 and Toyota Yaris hybrid. The fact is, there’s nothing remotely near the Chinese supermini’s base price that’s electric.
But is the Atto 1 any good?
It’s pretty obvious the XM is designed to impress people with big wallets and an appetite for a techy experience that’s also not without a few green credentials. The ability to motor around as a fully-electric vehicle for up to 80km or so is a big plus and the electric-ballroom interior vibe is hard to ignore, as well.
But from our perspective, the full-fat, twin-turbo V8, while offering startling performance, is perhaps a lost opportunity to follow some of BMW’s competitors into the engine-downsizing space. Then again, when you floor the throttle and 2700kg hurtles forward like a big dog on a short chain, you can see where BMW is coming from.
Perhaps the biggest letdown is the ride quality – or lack of it. While it’s understandable BMW wanted the most dynamic version of the XM it could manage, the end result plays against the vehicle’s otherwise long suit of hyper-luxury. Doubtless, BMW would argue that to soften the chassis would have been to introduce a chink into a no-compromise product. But, perhaps, sometimes a sensible compromise is the way forward.
The BYD Atto 1 has already earned its place in history as the cheapest new EV ever sold in Australia. And the good news is that, on the strength of bigger-battery Premium version, it rarely puts a foot wrong as a city car, exceeding performance, efficiency, refinement and comfort expectations. The Atto 1 really delivers around town.
But the baby BYD’s price is too close to larger EVs with better range, while extended exposure reveals issues with seat comfort, touchscreen access/distraction, ADAS interference and nervous steering feel at speed. Australian road tuning is required to rectify these.
Still, as a cheap urban EV runabout, the Atto 1 Premium still (just) stands alone. A glimpse into the future, someday, all city cars will likely follow in the bold BYD’s footsteps.
There’s nothing subtle about the way the XM looks. It probably pulls up just short of brutalist (or maybe not) but even those who find its slabs and angles attractive have to admit that it’s bold.
The now-trademark giant nostrils set the mood and the rest of the exterior suggests some kind of armoured transport for presidents rather than wheels for the school run. Doubtless, this will hardly be seen as a fault by those in the market for such a thing.
The real surprise here is that the XM does not share a bodyshell with any other production BMW. Sure, the V8 petrol engine and wheelbase are common to other BMW and M models, but the sheet metal is the XM’s and the XM’s alone. That in itself, is quite a statement of intent.
Fun fact. Designer Wolfgang Egger was responsible for the gorgeous Alfa Romeo 156 of 1997 among others, as well as some Audis and Lamborghinis later on. You can definitely see the latter’s influence in the Atto 1’s angular face.
Based on the Dolphin architecture and badged the Dolphin Surf elsewhere (as well as Seagull but that name wouldn’t fly here), the BYD’s boxy proportions are pure supermini and is about the size of the previous-generation Honda Jazz.
However, the designers have added some crossover cues to the styling, including plastic cladding around the wheel arches, to give it a pseudo SUV look.
Inside, though, the Atto 1 is unashamedly hatchback in layout and appearance, with a contemporary, minimalist dash, big central touchscreen with precious few buttons and loads of storage.
In other words, a typical modern small car from China.
Given the vast exterior dimensions and a weighbridge ticket the wrong side of 2700kg, it may come as a surprise to learn that the XM is strictly a five-seater with not even an optional third row.
That said, the uber-SUV Lexus LX in flagship, Ultra Luxury, trim offers just four seats in deference to the VIP clientele it’s pitched at, but also comes complete with reclining rear seats and a passenger’s side footrest which the XM can’t match.
Staying in the rear seat, there’s lots of legroom and plenty of space under the front chairs for feet. A lot of that is down to the wheelbase the XM shares with the BMW X7, and even behind a tall driver, there’s lots of space. In fact, compared with a BMW X5, there’s a full 150mm of extra legroom.
The pew itself flows into the door trims for a lounge effect which looks great with the contrasting light-coloured trim, and the centre arm-rest folds down to reveal a pair of cupholders. Extra storage space can be found in fold-out pockets in the rear of each front seat which also house a small, lidded panel that opens to reveal USB ports and power sockets. Dual-zone climate controls are also part of the rear-seat experience.
The gee-whizz stuff hasn’t been ignored, either, and the prismatic roof lining is nothing if not a talking point. But would a panoramic sunroof have been of more value to many buyers? The ambient lighting is a nice touch, too.
Up front, the view is dominated by the giant, twin curved animated dashboards. They deliver information and lots of it, to the point where it can almost seem a bit overwhelming.
The head-up display helps simplify things, but there’s absolutely no doubt there’s a lot going on in this cabin. Again, this is modern luxury motoring, but it remains that the menu system will take time to learn, even if the touchscreen function gives you an option on how you control things.
Multi-adjustable front seats are part of the deal and there’s an M-spec steering wheel which is heated. And although it features plenty of buttons, isn’t as daunting perhaps as the multi-spoked equivalent in some high-end AMGs of late.
The stereo system is also worthy of a mention, being a Bowers & Wilkins unit with roof mounted speakers and no less than 1500 watts of power. Digital radio is part of the package.
Even though it doesn’t offer a seven-seat option, luggage space in the rear of the XM is hardly class-leading. Cargo volume with rear seat up is 527L and 1820L with it folded.
Much of the wheelbase is devoted to rear-seat stretching room and although the batteries for the electric motor are positioned under the rear seat, the floor of the cargo area seems quite high.
The BYD’s boxiness sure pays dividends accessing the Atto 1's interior, aided by tall doors, a high roof and lofty seating.
Initial impressions are very positive.
Lots of space, a decent driving position (in the Premium at least; the Essential has rake-only steering adjustment), grippy little wheel and a solid look and feel impart a sense of quality. This does not seem built down to a price.
The elevated centre console/fixed armrest provides ample storage below and easy reach of USB ports, sturdy cupholders above and a raised smartphone rest that doubles as a charger (again, only on Premium), allowing for quick downward glances without having to touch the device. Helpful.
Further points are won due to the very clean and minimalist dash presentation, with an electronic instrument display ahead of the driver (not a given nowadays thanks to Tesla’s minimalism-gone-mad influence), offering all the information you need in a concise and notably colourful manner.
That 10.1-inch central touchscreen, meanwhile, is probably one of the better examples from China, possessing superficially logical operation, clear markings and a row of fast-access icons for climate, audio, vehicle function, home screen and other controls.
However, the more time you spend in the Atto 1, the more the cabin doesn’t stand up that well under scrutiny.
The shapely tombstone-style front seats, which look a million dollars, are comfortable on short journeys but disappoint during longer drives, revealing a lack of sufficient back and thigh support.
There are no regenerative braking paddle shifters for single-pedal driving, just an on/off tile requiring a distracting and time-consuming touchscreen-menu deep-dive.
In fact, most functions demand at least one or two eyes-off-the-road-ahead prods of the screen, which is annoying and potentially hazardous.
Using the climate control is a good (bad) example.
Infernally fiddly screen slide controllers that are hard to pin-point with a hovering finger while the car is moving, let alone modulate, leads to temperature-selection fury. And those vinyl seats are clammy regardless of humidity levels and their perforations don’t help. Setting the desired climate environment is an utter faff.
And why must BYD’s synthetic leather smell so pungent? The off-gas odour can be nauseating for some on warmer days.
Worse still, even a glance towards the touchscreen sets off the distraction nannies. Frustrating. So is the intrusive lane-keep assist tech, unless you keep the car perfectly centred, with its constant nudging of the wheel while it nags away. More like Aggro 1.
Inevitably, turning these and other ADAS warnings off requires several menu deep-dives, leading to more driver-distraction paranoia. It’s a circle of stupidity for tech that’s meant to protect. And every new drive defaults to ‘on’. It's an infuriating mess.
Meanwhile, the Atto 1’s (two-person-only, remember) rear seat area also starts off promisingly, with easy entry/egress, adequate space (even for long legs and big feet) and a backrest and cushion combo offering sufficient comfort and support.
Amenities include useful door storage, overhead grab handles and map pockets, while the back of the centre console provides a cubby area just wide enough hold a bottle or larger keep-cup. That’s necessary because there is no folding armrest or subsequent cupholders back there, nor reading lights or USB ports.
And while the upward sweep of the window line means the rear can seem dark, the shape of the front seats allows some vision around and even through them for rear occupants.
Further back, the boot area is larger than the BYD’s diminutive size suggests, at 308 litres with backrests erect and 1037L with them folded forward.
The deep floor hides an even deeper cavity that’s large enough for charger cables, laptops and other paraphernalia that should be out of sight. That almost negates the need for the AWOL luggage cover.
But there's also a tyre repair kit instead of a spare wheel in there, and regular readers will know how incorrect that is. Every vehicle sold in Australia should come with one. Even city cars.
Loading/unloading is easy and there are hooks to secure things to, but clearing the high lip may be an effort for some.
And, though an EV, the is no extra storage to be found under the bonnet. The Atto 1 has no front boot, or froot.
The XM is one of those 'no options' vehicles. That is, you pay the basic price, you get one with the lot. The aged leather and even the optional 23-inch wheels and tyres are no-cost options, so it’s clear where BMW is aiming the thing.
As well as the plug-in driveline, all-wheel drive and all the M driving focus, the XM features plenty of tech including massaging front seats, heated seats all around, a high-end stereo, heated and cooled cupholders, four-zone climate-control, wireless phone charging and twin, curved info screens for the driver measuring 12.3 and 14.9 inches. The novel roof lining also features 100 pin-point LEDs for effect.
The cost of such detailing is a not insubstantial $302,200. That figure does, however, undercut two of its main rivals, the Lamborghini Urus ($395,888) and the Aston Martin DBX ($356,512).
It’s also worth mentioning that the XM is not even BMW Australia’s most expensive model; in fact, it’s fourth on the ladder.
And… what a perfect time to release Australia's cheapest new EV!
Sat alongside the base Essential from $23,990 (all prices are before on-road costs unless otherwise stated) is the Premium as tested here, starting from $27,990 and representing a $4000 difference.
But oh, what a difference.
The cheaper Essential comes with a 30kWh battery, providing a WLTP range of just 220km. Usefully, the Premium’s battery is 44 per cent larger at 43.2kWh, boosting range to a more-comfortable 310km, while power jumps by 77 per cent.
Every Atto 1 includes synthetic leather-trimmed seats, a 10.1-inch central touchscreen, rear camera with sensors, adaptive cruise control as part of some Advanced Driver Assist Systems (ADAS) tech (more on safety later on), wireless Apple CarPlay and Android Auto and even Vehicle to Load (V2L) functionality, so you can use your hairdryer on the fly. Handy!
However, the Premium ups the ante with a surround-view monitor, powered and heated front seats, reach as well as rake adjustment for the steering wheel, a wireless charger, LEDs rather than halogen headlights and 16-inch alloy wheels instead of 15-inch steelies with hubcaps.
But… both are four-seaters only. And neither offers an exterior temperature gauge, remote keyless entry from the passenger side (you’ll always need to press a fob), a luggage cover or a spare wheel – just the totally-unsatisfactory tyre repair kit.
Plus, there’s no heat pump so, in winter, turning the temperature up will drag range down noticeably, while a lack of liquid cooling for the battery will do the same during a hot Aussie summer, since the AC has to work overtime doing that job instead.
And we’re not convinced the Atto 1 represents such great value.
Yes, that small-battery Essential undercuts every hybrid bar Suzuki’s (mild-hybrid) Swift, including the MG3 Hybrid+ and Toyota Yaris HEV, and even the ageing Mazda 2 petrol costs more, but its limited range means it’s better as an inner-urban, small-distance-only commuter proposition. Best as a second or even third car.
Meanwhile, the bigger-battery Premium is priced perilously close to significantly larger EVs with greater range, including BYD’s own Dolphin from $29,990, the MG4 Urban from $31,990 drive-away, GAC Aion UT from $32,990 drive-away and the coming Geely EX2.
And, alongside cheaper-still petrol-powered alternatives such as the Kia Picanto, MG3 and MG5 sedan, there are also smaller SUVs that slip beneath the bijou BYD, like the Chery Tiggo 4, Haval Jolion, Hyundai Venue, Mahindra XUV 3X0 and MG ZS.
What we’re saying is, unless the Atto 1’s sub-four-metre length and narrowness are paramount, it’s behind the eight-ball for value against an array of more-substantial alternatives costing not much more.
Still, we get this is that rare thing today, a truly-new city car and we’re here for that.
Here’s where the XM starts to justify its price-tag. While the use of an electric motor to boost a petrol engine has allowed some manufacturers to reduce the capacity of the latter, no such restraint has been shown for the XM. Instead, it gets the full 4.4-litre, twice turbocharged V8 that we’ve come to know and love from this brand.
It’s not that this is the engine’s first date with hybrid technology, but the mild hybrids that have come before it can’t match the XM for sheer brutality when both power units are unleashed.
The petrol V8 can muster up 360kW and 650Nm which, when boosted by the electric motor, jumps to a total of 480kW (combined) and 800Nm.
While the petrol engine drives through an eight-speed torque-converter automatic, the electric motor also drives through the transmission, an arrangement that is a bit different to some hybrids which use the petrol engine for the rear axle and the electric motor to drive the front wheels.
Of course, the requirement for the XM to feature permanent all-wheel drive, regardless of what power unit is running at the time, forces this layout.
Speaking of all-wheel drive, The XM’s version of BMW’s 'xDrive' layout has been specifically tuned for this vehicle and includes torque vectoring as well as a limited-slip rear differential.
The system has the ability to vary the torque split front to rear, with the default rear-bias giving a more sporting feel on good surfaces. An active rear differential also helps give the car a rear-drive feel.
As well as modes for 'Hybrid', 'Electric' and 'eControl' modes, the XM sticks with the M tradition of offering two M buttons which can be configured to set the parameters for steering, driveline, chassis and, in the case of the hybrid XM, the degree of braking regeneration offered.
Four-wheel steering is also part of the XM’s repertoire and, interestingly, there’s no air suspension here; just conventional steel springs.
But it does feature an electrically-adjusted anti-roll bar system which aims to strike a happy medium between what the driver wants and the road conditions demand.
The Atto 1's electric motor is offered in two output choices. Either way, it can be found under the bonnet and driving the front wheels via a single-speed transmission.
The Essential scores a low-power version making 65kW and 175Nm of torque, which is enough for a 0-100km/h sprint time of a still-decent 11.1 seconds, while the Premium’s high-power unit ups those to 115kW and 220Nm respectively, shaving two seconds off in the process. Top speed is said to be 135km/h.
Note that, while the latter grade’s 43.2kWh battery adds 96kg overall compared to the smaller 30kWh model, it still enjoys a way-superior power-to-weight ratio of 82.7kW/tonne versus just 50.2kW/tonne.
A 25.7kWh lithium-ion battery provides the power for the electric drive. It’s mounted under the rear seat and can produce a purely electric range of between 82 and 88km (based on WLPT test protocols).
Charge time from a conventional wall-box is said to be about four hours but, interestingly, the XM has no provision for DC fast-charging.
Fuel consumption (combined cycle) is an EV-typical 2.7 litres per 100km, which equates to a low 61g/km of CO2.
Once you’ve depleted the battery on a highway journey, expect the petrol V8 to consumer somewhere between eight and nine litres per 100km at cruising speed.
Using EV mode means zero-emission operation but, as with any electric car, how the power is generated to recharge it determines its real-world green-ness.
The official consumption average for the Essential is 15.5kWh/100km and its 30kWh 'Blade' LFP (Lithium Iron Phosphate) battery offers a WLTP range of 220km.
The 43.2kW Premium bumps the energy use figure up to 16kWh/100km but offers 310km WLTP.
We came close to latter claim, with 263km of mixed driving and still showing about 10 per cent of range left, while the car’s consumption readout averaged 13.7kWh/100km overall. That rose to 16.5kWh/100km during a stint of harder, highway-heavy driving.
Charging times vary. With an 11kW AC capability on both grades, the Essential needs up to 16 hours and the Premium 22 hours plugged into a regular socket, and five and seven hours respectively using an optional 7.0kW Wallbox.
Meanwhile, switching to DC fast charging, the Essential’s 65kW capability means a 10-80 per cent top-up can be achieved in under 40 minutes, against the 85kW Premium’s 30 to 50-minute requirement.
While any M car is supposed to be rapid and dynamic, it’s also true that the over-arching perception of big SUVs is that they’re comfortable and plush. None of which explains the ride in the XM.
Regardless of how you fiddle with the settings, the ride is always brittle. Those big tyres with their minimal sidewall somehow manage to find every crack and join in the road, and it’s these sharp-edged imperfections that thump through to the cabin the most vocally.
It’s enough to make you wonder who this car is going to appeal to. Will it take to race tracks? Almost certainly not. So the whole point of these suspension settings might be a bit lost on some people.
Performance, meanwhile, is insanely rapid for something that could pass as a bulk carrier. The biggest giveaway to the mass is the transmission’s earnest attempts to keep everything moving by feeling a bit hyperactive on downshifts.
Using the ratios is always going to be the strategy, but with all that torque, maybe it’d be nice sometimes for the trans to hang on to a taller gear and let the boost blow it towards the next corner.
The sound track? Polarising. Even if it doesn’t convince you that Hans Zimmer (who developed the various electronically-synthesised noises the XM makes) should stick to winning Oscars, the augmented sounds are background noise rather than the main event here.
Even the petrol V8’s naturally stirring backing vocals have been electronically tweaked with debatable results.
That said, it’s nice to have something to listen to that isn’t the insistent tyre roar which becomes even louder on coarse-chip surfaces.
Steering effort is light but there’s not a lot of feedback in terms of actual feel. In fact, it’s borderline detached and only the sheer speed of the rack confers any athleticism.
Also, the rear steering seems to come in a few milli-seconds after the front has started to turn. And for all that all-wheel-steering agility, this is never a car that shrinks around you.
Sadly, we cannot comment on how the 65kW/175Nm Essential drives, but with 77 per cent more power and 25 per cent more torque, the 115kW/220Nm Premium’s performance is one of its calling cards.
Lively off the mark, even in Eco, it thrives in inner urban environments, with instant throttle response for effortlessly zippy and smooth acceleration, as you’d expect of an EV.
And it just keeps on keeping on at speed, giving the Premium a terrific breadth of performance flexibility. We’re now very curious to see how the Essential goes.
Armed with light and alert steering, the Atto 1 can weave in and out of traffic gaps with confidence and precision, and is backed up by a super-tight turning circle to boot, so parking manoeuvres around town is a doddle.
BYD’s decision to set up the chassis for a soft, long-travel suspension is appreciated, since the Premium takes most bumps and humps in its stride, making this one of the comfier city cars around.
Road and tyre noises are omnipresent, but aren’t not too bad overall by supermini standards, while the Hankook 185/55R16 tyres deliver sufficient grip, even over some rain-soaked roads we endured.
Most of these Atto 1 attributes also translate well at freeway speeds, with the Premium offering ample muscle for overtaking, slick steering responses and a planted chassis feel.
But, once you hit some faster corners, the BYD’s reactive steering, lofty seating and cushy suspension conspire to create considerable body movement, especially through tighter bends, scrubbing the front wheels as it turns wide (understeer).
Yet, press on a bit harder, the Atto 1 can instantly change its attitude to oversteer, feeling darty as weight shifts from the rear, making the steering suddenly too sharp and the car too nervous, Even experienced drivers might hesitate to carry on. And this happened on dry roads.
Of course, the BYD is a city car so not designed for sports-car handling, but it does lack the confidence and control of a hard-driven Mazda 2 or Suzuki Swift. Strangely, it seems more SUV-like than supermini, dynamically.
Most owners won't care, but they will have to live with the infuriating ADAS tune, with inexplicably sudden braking when the adaptive cruise control is on, and lane-support systems that all-too-often tug and bleat endlessly like an agitated goat, becoming too distracting, and requiring far-too-fiddly touchscreen menu diving to silence, especially as they default back on with every restart.
The driver-attention warning is also in a semi-permanent state of nerves, squawking all-too-regularly unless the driver is sat perfectly still, and will easily escalate the danger level to “take-a-break” should you dare move about in your seat. Which would be regularly, due to the latter’s lack of enduring support. A literal and metaphorical pain.
Clearly, then, the Atto 1 can really do with some Australian road tuning and on a number of fronts at that. Until this happens, these are the dark clouds blighting the blue skies that this car’s otherwise sunny disposition delivers with every urban drive on a daily basis.
Or, in other words, stick to the urban jungle.
As well as the usual passive safety features, the XM also hides the latest active safety gear. In fact, BMW reckons the XM has more driver assistance than any other M car before it.
Those elements start with the 'Driver Assistant Professional' which bundles active cruise-control with stop-go ability, steering and lane-keeping control, automatic speed limit assist and active navigation.
Parking assistance is also featured which incorporates a reversing assistance function, front, rear and panoramic camera views with a 3D view built in.
BMW’s 'ConnectedDrive' includes an emergency call function in the event of a crash or other emergency.
No ANCAP assessment so far.
The Atto 1 debuted in China back in 2023, but this is a facelifted, international-market version evolved mainly for European consumers, so crash-tested by Euro NCAP only last year, and scoring a maximum five-star ANCAP rating.
Note, though, that while the baby BYD includes Autonomous Emergency Braking (AEB) with forward collision warning, lane-departure assist and adaptive cruise control as standard, there is no blind-spot monitor or rear cross-traffic alert. Odd for a city slicker.
Six airbags are fitted, including curtain protection for all outboard occupants, while there are two rear-seat sited ISOFIX anchorage points and child-seat tether points behind each backrest.
Like a lot of manufacturers, BMW knows consumers can be leery of EV tech when it comes to the cost of battery replacement. So, as well as the five-year/unlimited-kilometre warranty on the whole vehicle, there’s also eight years or 160,000km of cover for the high-voltage battery.
Servicing intervals are based on how the car has been used and it will inform the owner when a service is required.
A servicing package is included in the purchase price and BMW even throws in three years of roadside assistance.
Here’s where the BYD slips up a bit.
Yes, it comes with a better-than-industry-standard six-year warranty, but many rivals offer between seven and 10-year coverages, while the Atto 1’s mileage warranty is capped at 150,000km when most others include unlimited mileage. And roadside assistance is only for one year, as well.
Service intervals are every 12 months or 20,000km. Capped-price servicing is available, but no precise figures were available at the time of publishing.
Estimates are from under $200 for the first and third annual services, and from $500 and $650 for the second and fourth yearly visits, respectively. Please check with BYD for updated figures.
Currently there are about 105 BYD service outlets throughout Australia, with 30 more expected by the middle of 2026. This should address one of this brand's biggest concerns – sufficient after-sales care.