BMW X5 V8 will survive in new-generation form

BMW will expand the fifth-generation X5 range with a petrol V8-powered derivative during its lifecycle, likely ahead of the launch of a hydrogen fuel-cell version in 2028, reinforcing the German manufacturer’s strategy of retaining a broad spread of alternatives to battery electric (BEV) powertrains.

The new X5 will launch in Australia in the fourth quarter of 2026 with six-cylinder 40 petrol and 40d diesel variants, before electrified iX5 60 BEV and X5 50e plug-in hybrid (PHEV) versions arrive in the middle of 2027.

Asked whether the new G65 model would again offer a V8 to sit above the inline-six engines, BMW X5 product manager Nina McFadden told GoAuto, “During the lifecycle, we will also offer something like that”.

BMW Group is understood to have re-engineered its S68 series 4.4-litre twin-turbocharged V8 engine to clear upcoming European emissions requirements, unlocking the ability for the eight-cylinder to continue in the 7 Series LCI, which is set to gain a high-powered M Performance variant next year.

With the laborious and expensive work done to keep the V8 alive, all signs now point to an M60 or M70 variant being added to the new X5 line-up in short order.

Eventually, a V8-powered X5 M could also return, but the full-fat M badge might be restricted to electric power, as it will be for the new X3 M.

The new X5 V8 model will be directed mainly to high-margin markets, including the US and Middle Eastern states, where customer demand for big engines remains strong and CO2-linked emissions penalties are less restrictive than those in Europe, or Australia.

But despite the operation of the New Vehicle Efficiency Standard (NVES), it looks like Australia is in the frame to the V8 engine as well, because BMW Australia is confident it can offset the relatively high emissions profile of such an engine as it is selling significant volumes of BEV and PHEV models.

“I cannot confirm or deny the V8 for Australia, but it is something that does very well in the Australian market,” BMW Australia head of product and market planning Brendan Michel told GoAuto.

“The beautiful thing about this new X5 drivetrain is that we can sell a fully electric one and that will offset the CO2 of a V8 and a diesel in the future … we do have all the models to get the right balance in our portfolio, and that’s what we’re planning moving forward.”

Globally, BMW has built out one of the car industry’s broadest powertrain strategies in recent years, with the Power of Choice tactic seeing the brand continue to deploy petrol, diesel, PHEV, BEV, and even FCEV choices in all key segments, to offset CO2 penalties and meet changing customer demand.

With the addition of BEV versions this time around, the new X5 provides that balancing mechanism even more.

Mr Michel said BMW Australia expected a relatively even sales split across combustion, PHEV and BEV versions over time, even sales of the outgoing X5 were dominated by diesel.

BMW’s hydrogen program represents the other end of the X5’s “technology open” strategy, but it is much less likely to have near-term Australian relevance.

BMW has confirmed the iX5 Hydrogen will enter series production in 2028 as the company’s first hydrogen-powered production model.

The new fuel-cell system is being developed with Toyota, while BMW Group Plant Steyr in Austria will manufacture the third-generation fuel-cell systems from 2028.

BMW says the third-generation system is around 25 per cent more compact than the current iX5 Hydrogen pilot-fleet technology and is designed for higher power density, improved efficiency, and easier integration into future vehicle architectures.

However, the absence of public hydrogen refuelling infrastructure in Australia means the FCEV X5 remains unlikely for local showrooms, at least in its initial 2028 rollout.