Luxury SUVs go hybrid: 2026 BMW X1 and X2 now run mild-hybrid and plug-in hybrids, with prices up and new variant names for Mercedes GLA and Audi Q3 rivals

BMW has updated its smallest SUV models with more efficient engines and a new plug-in hybrid (PHEV) variant, but prices are up across the line-up.

The 2026 BMW X1 and X2 now no longer run four-cylinder engines for the most part, and a plug-in hybrid variant joins the X1 line-up.

New emissions regulations have led to the hotter M35i versions of the X1 and X2 to drop a little bit of power.

Read More About BMW X Models

More changes to the models’ line-ups come with the removal of the single-motor variants of each electric car, the iX1 and iX2. Some pricing has changed, though a couple of models were spared the mark-ups.

Starting from the biggest addition, the new BMW X1 xDrive25e plug-in hybrid is a $79,500 ask before on-road costs, landing it roughly in the middle of the X1 line-up price-wise.

While BMW says some of its technical details are to be confirmed, an EV range of as much as 86km thanks to a 14.2kWh battery will help the X1 PHEV achieve a fuel consumption rate between 6.3L and 7.1L/100km, BMW says.

The all-wheel drive model uses a 1.5-litre three cylinder turbo engine, mostly used in sibling brand Mini’s models, with an 80kW electric motor assisting the operation for a total 180kW/477Nm output.

2026 BMW X2

BMW has also streamlined the entry point into each model, both now starting with a front-wheel drive ‘sDrive20i’ variant that features more kit than the outgoing sDrive18i in the X1, and is cheaper than the outgoing all-wheel drive xDrive20i variants in each X1 and X2.

They’re powered by similar 1.5-litre three cylinder turbo engines to the X1 PHEV, but feature mild-hybrid assistance for outputs of 125kW/280Nm sent to the wheels via a 7-speed dual-clutch transmission.

As well as the drivetrain updates, electrically adjustable heated seats have been added.

More small changes come in the addition of silicon carbide (SiC) inverters to the iX1 and iX2, now available only in ‘xDrive30’ variants, though pricing remains the same for each: $86,800 for the iX1 and $87,600 for the iX2.

2026 BMW X1

Finally, the performance-focused M35i xDrive variants are each $1000 pricier, while also having their performance culled slightly with no additional features added.

Due to the addition of a petrol particulate filter “for adherence to new emissions regulations”, each has been sapped of 12kW meaning outputs are now 221kW and 400Nm on each. Engines are still the same 2.0-litre four-cylinder

Full explanations of the changes to the X1 and X2 can be found in the tables below.

2026 BMW X1 price Australia

Variant	Price before on-roads
X1 sDrive20i	$66,700 (new*)
X1 xDrive25e	$79,500 (new)
iX1 xDrive30	$86,800
X1 M35i xDrive	$93,900 (+$1000)

*X1 sDrive18i was $62,400, xDrive20i was $72,400

2026 BMW X2 price Australia

Variant	Price before on-roads
X2 sDrive20i	$72,000 (new**)
iX2 xDrive30	$87,600
X2 M35i xDrive	$95,900 (+$1000)

** X2 xDrive20i M Sport was $77,900

2026 BMW X1 engine/powertrain and efficiency

	X1 sDrive20i	X1 xDrive25e	iX1 xDrive30	X1 M35i xDrive
Powertrain	1.5-litre turbo 3-cyl engine	1.5-litre turbo 3-cyl engine; 80kW electric motor	Dual-motor permanent magnet synchronous	2.0-litre turbo four-cylinder engine
Power	125kW	180kW	230kW	221kW
Torque	280Nm	477Nm	494Nm	400Nm
Transmission	7-spd DCT	7-spd DCT	Single-speed	7-spd DCT

2026 BMW X2 engine/powertrain and efficiency

	X2 sDrive20i	iX2 xDrive30	X2 M35i xDrive
Powertrain	1.5-litre turbo 3-cyl engine	Dual-motor permanent magnet synchronous	2.0-litre turbo four-cylinder engine
Power	125kW	230kW	221kW
Torque	280Nm	494Nm	400Nm
Transmission	7-spd DCT	Single-speed	7-spd DCT