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?
The Australian market hasn’t truly revolved around a sedan since I was a kid. These days it’s all about SUVs, and anything low-slung is easy to overlook when it comes to family hauling. Add to that the current fixation on hybrid and electric powertrains, and a mid-size petrol sedan feels almost out of step.
And yet, here’s the MG7.
It’s a mid-size fastback with a turbo-petrol engine and just one trim level. Its sharp styling is matched by an even sharper price, and it doesn’t seem particularly concerned about not fitting the current mould.
It lines up against the Toyota Camry SL, Skoda Octavia Sportline and Hyundai Sonata N Line and raises an interesting question. Is this the sedan comeback nobody saw coming? And could it remind modern families why sedans were once king?
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.
In a world obsessed with SUVs and electric powertrains, a mid-size petrol sedan almost feels rebellious. But the MG7 kind of is. A sleek fastback with a turbocharged engine, a sporty edge and a price that makes you look twice - it’s a compelling combination. There are some drawbacks for families in efficiency and back-seat practicality but it's not a bad offering for those wanting something a bit more fun than an SUV.
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.
The MG7 is genuinely good looking. The fastback roofline gives it a sleek silhouette, and there’s a confidence to the way it carries itself.
The blacked-out badging, quad exhaust outlets, 19-inch Michelin tyres and red brake calipers all lean into that sporty brief. It looks fast standing still. The frameless doors are a nice touch, and the retractable rear spoiler adds a bit of theatre and fun.
Inside, the cabin follows through on that upmarket intent. Deep burgundy leather and synthetic suede are used generously throughout, giving it a sumptuous feel. Although, my husband joked that he wouldn't be able to drive it during State of Origin... sorry, Queenslanders!
There’s less reliance on piano black trim, which I appreciate as it scuffs easily, and most surfaces look well-finished. The integrated headrests up front give the illusion of proper sports seats but I do wonder if the interior would pop half as well if it was finished in the optional black.
The dashboard is dominated by a wide digital display incorporating a 10.25-inch instrument cluster and a 12.3-inch media screen. The panoramic sunroof helps keep things light and airy, and while there aren’t many physical buttons or dials, which is usually a gripe of mine, the overall execution feels cohesive and premium for the price point.
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.
Up front is where the MG7 feels most generous. The electrically adjustable front seats are comfortable and supportive for daily driving, although extendable under-thigh support would help reduce fatigue on longer trips. You do get heating for both the seats and the steering wheel but having to dive into the media menu to activate them is annoying.
In the second row, legroom is respectable for a mid-size sedan. Headroom, however, is tighter thanks to the fastback roofline and panoramic sunroof. Tall teenagers won't feel like they can sprawl out but younger kids will be fine. The second row features two ISOFIX child seat mounts and three top-tether anchor points but two child seats will fit best. Bending down to buckle in a child will remind your back why SUVs became all the rage, but it's certainly doable.
The seats in the second row are thickly padded and comfortable, and the fold-down armrest sits at a good height to lean on. Amenities aren’t especially extensive given there’s only one grade available, but you do get a couple of cupholders, map pockets, directional air vents and two USB-C ports.
Storage in the front row is about what you’d expect for a car of this size. There’s a decent glove box, a shallow middle console, large door bins and some handy little nooks near your knee. A sunglasses holder and a dedicated phone cradle with wireless charging round things out nicely. The wireless charger can lag a little in topping up your battery, and it's quick to overheat your phone - added ventilation would be a big help here. However, there’s also a 12-volt socket and two USB-C ports if you prefer a cable.
The media system itself is responsive and largely intuitive, although the touchpad-style controls on the dash feel slightly back-to-front in use. On the plus side, it’s very easy to flick into Sport mode and open up the exhaust using the cluster controls, which adds a bit of fun to the daily drive.
The boot offers 375 litres of capacity, which is on the smaller side for the segment. Comparatively, the Sonata N Line offers 480L, the Skoda Sportline 600L and the Camry 524L. That said, it’s been perfectly usable for grocery runs and the odd road trip this week. You do need to load bulkier items further back toward the seats to work around the sloping fastback design. A powered tailgate adds convenience, and there’s a temporary spare tyre underneath, which I always prefer to a repair kit.
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.
For now, the MG7 is offered in a single grade, the Essence, priced from $44,990 before on-road costs.
That positions it just above the Skoda Octavia Sportline, which starts from $44,490 MSRP, although the Skoda doesn’t match the MG7 feature for feature. In terms of features and styling, it’s closer to the Hyundai Sonata N Line, which opens at $56,500 MSRP. And then there’s the segment darling, the Toyota Camry SL, from $53,990 MSRP, happily flexing its hybrid efficiency credentials.
On price alone, the MG7 looks competitive. On specification, it starts to look like a bit of a statement. You get leather and synthetic suede upholstery, heated and electrically adjustable front seats, memory function for the driver’s seat, a heated steering wheel, a panoramic sunroof and 19-inch Michelin tyres.
Technology feels well thought out and a large centre display houses a 12.3-inch media system, paired with a 10.25-inch digital instrument cluster that appears larger than it is thanks to the integrated touch controls. There’s wired and wireless Apple CarPlay and Android Auto, built-in satellite navigation, 256-colour ambient lighting and a 14-speaker Bose sound system.
Practicality hasn’t been overlooked either. A powered tailgate, temporary space saver spare wheel, dual-zone climate control, acoustic door glass, rain-sensing wipers and a 360-degree camera system round out the package.
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 MG7 has a 2.0L, four-cylinder turbo-petrol engine producing up to 170kW of power and 380Nm of torque. That’s pretty gusty compared to its nearest rivals, although the Sonata N Line still beats it with its 213kW/422Nm outputs. The Hyundai is more of a dedicated sports model. Still, with these outputs the MG7 manages a 0 -100km/h sprint in a swift 6.5-seconds!
Power is delivered to the front wheels and the nine-speed auto transmission punches through its gears relatively smoothly. You can also flip it into Sport mode, where gear changes become more pronounced.
Overall, the whole setup creates an engaging on-road experience without lulling you into any false pretences. The MG7 is not a racer, even though it looks like one, but it holds its own.
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 MG7 has a claimed combined fuel consumption figure of 8.0L/100km. With its 65-litre fuel tank, that equates to a theoretical driving range of up to 812km.
That places it broadly in line with the Hyundai Sonata N Line, which claims 8.1L/100km, although the Hyundai delivers stronger engine outputs. The Skoda Octavia Sportline is notably more frugal at 6.1L/100km, while the Toyota Camry SL continues to dominate the efficiency conversation with its 4.0L/100km hybrid figure.
In real-world driving, expect that 8.0L/100km claim to creep up. Even after a week consisting mostly of longer highway stretches, my trip computer was sitting at 8.6L/100km. That’s not wildly unexpected for a turbo-petrol engine, and it’s hardly alarming, but efficiency is a major consideration for families. Against hybrid rivals, it doesn’t win that particular argument.
Combined CO2 (ADR 81/02) emissions sit at 183g/km, which is comparative to the Hyundai Sonata N Line but not as low as its other rivals.
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.
Power delivery in the MG7 is smooth and responsive, and it doesn’t take long to feel confident with the turbo-petrol engine. For a bit of extra fun, flick it into Sport mode and open the exhaust; gear changes become more pronounced, and the engine note gets noticeably throatier. It’s not a performance sedan, but it’s definitely engaging on the road.
Handling is another highlight. The steering is responsive and firms up depending on your selected drive mode, and the low-slung stance helps the car feel surprisingly nimble in corners. That said, it’s not always surefooted when accelerating out of tight bends, which reminds you that the MG7 is sporty but not track-focused.
Visibility is adequate but not perfect. The thicker pillars, lower roofline, and relatively small windows do make the cabin feel a touch enclosed, and there’s some road noise, which is enough to remind you it’s not a luxury saloon, but it never becomes intrusive.
The MG7 feels agile in tighter spaces, and the 360-degree camera system is high-quality. Parking is straightforward, which frazzled parents will appreciate.
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 MG7 has a maximum five-star ANCAP safety rating from testing done in 2025 and scored well across its individual criteria with 88 per cent for its adult protection, 85 per cent for child protection, 80 per cent for vulnerable road user and 81 per cent for its safety assist.
Passive safety items include seven airbags including a front centre airbag and curtain airbags covering both rows. Families will like that there are two ISOFIX child seat mounts and three top-tether anchor points but realistically, two child seats will fit best. There are also powered locks for the rear windows and intelligent seatbelt reminders for all five seats. Parking is easy with the rear parking sensors and 360-degree view camera system.
Active safety includes forward and rear collision warning, lane keeping aids, lane departure warning and prevention, blind-spot detection, side exit assist and a relatively unobtrusive driver monitoring system.
Other highlights include emergency lane keeping, which will activate when there’s no response from the driver and the rear cross-traffic alert also gets assisted braking. The adaptive cruise control is fairly well-calibrated and it’s a bonus having the emergency call functionality, although it seems to connect to an MG service line, rather than directly with emergency services. And you have to select which country you’re in before it activates, which might not be a delay you want when you really need it!
There’s autonomous emergency braking with car, pedestrian and motorcyclist detection and it's operational from 4.0 – 85km/h and up to 150km/h for car detection but it is more typical to see that top figure closer to 180km/h.
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.
MG backs the MG7 with a seven-year, unlimited-kilometre warranty. If you service exclusively through MG service centres, that coverage can be extended to 10 years or up to 250,000km, which makes it one of the more generous warranty offerings currently available.
At the time of this review, servicing intervals and service prices haven't been set for the MG7. It's fairly easy to secure servicing for an MG, as they have around 90 service centres nationwide at the moment.