BMW claims to be the leading supplier of diesel-engined vehicles in the Australian luxury-car segment and expects to further strengthen that claim with the launch of a new entry-level four-cylinder X3 oil-burner.

The six-speed auto-only X3 2.0d is priced at $62,900 and therefore undercuts its similarly equipped 3.0-litre six-cylinder diesel X3 sibling by some $13,000.

It is powered by the same common-rail injected turbo-diesel engine as the recently released 120d and therefore offers 125kW of power at 4000rpm and 340Nm of torque at between 1750rpm and 3000rpm (compared with 160kW and 480Nm for the six-cylinder variant).

This engine is now also fitted in the 5 Series (the 520d launched imultaneously with the X3)and, from next month, in an upgraded 3 Series, replacing the less-powerful 115kW/330Nm 320d first launched in April 2006. BMW Australia managing director Guenther Seemann believes that performance and efficiency of the latest diesel engines means they match with BMW’s sporty driving ethos.

“BMW diesels deliver responsive performance, with plenty of the low-down torque Australian drivers relish,” said Mr Seemann. “With our legendary balanced handling, precise steering and powerful brakes, we have a range of vehicles that are perfect for the most enthusiastic driver.

“BMW diesels also have the benefi t of being among the cleanest engines vailable (and our) diesel drivers can enjoy their driving for far longer between refills.

“Our range has now expanded to seven models, reflecting the strong demand across the BMW family for diesel-powered vehicles.

“We are delighted we are able to provide such advanced-technology engines in Australia. The third-generation all-alloy four-cylinder engine with its six-cylinder style torque will quickly establish a loyal following among our owners, as well as draw new customers to BMW.”

With an aluminium block and the same piezo injection system as the 3.0-litre engine, delivering the fuel at 1800 bar of pressure (compared with 1600 bar for the previous 2.0-litre), the new engine is not only 20kg lighter and 10kW more powerful, but delivers lower emissions and 10 per cent better fuel economy as well.

Two balance shafts running in needle bearings against the engine’s direction of rotation are built into the side of the crankcase in such a way as to not interfere with the BMW xDrive all-wheel drive system that is fitted standard in the X3.

As well as xDrive, the X3 diesel is aided by a number of electronic control systems, including electronic stability control, hill-descent control and a complex ABS braking system.

Other safety equipment includes front airbags, head airbags front and rear, and side airbags front and rear.

Matching the X3 2.5si (which costs $5600 more), the 2.0d also gets parking monitors front and rear, foglights, rain sensors, automatic headlights, roof rails, 17-inch alloy wheels with 235/55 R17 tyres, leather upholstery, automatic climate control, a ski bag, a multifunction leather steering wheel, cruise control, Bluetooth phone preparation and a toolkit.