BMW is simplifying its XM lineup for the 2026 model year. Starting later this summer, the luxury SUV will only be available in the high-end Label version, offering more power, improved features, and fresh customization options.
From Two Trims to One: The XM Label Takes the Lead
The BMW XM debuted in 2022 with bold styling and a unique plug-in hybrid M powertrain. It impressed with its performance and quickly gained attention, especially with the introduction of the more powerful XM Label model in 2023. For 2026, BMW has decided to discontinue the standard version and focus entirely on the Label trim.
This move means the XM will no longer offer the base 644-horsepower hybrid powertrain. Instead, all 2026 models will feature the same M Hybrid system used in the Label version. This setup combines a 577-horsepower twin-turbocharged V8 engine with a 194-horsepower electric motor, delivering a total system output of 738 horsepower.
The XM Label can accelerate from 0 to 60 mph in just 3.6 seconds. Its top speed is 155 mph, but with the optional M Driver’s Package, that figure increases to 175 mph.
Improved Charging for More Convenience
Although the performance figures remain the same, BMW has enhanced the XM’s charging system. The 2026 model includes a new Combined Charging Unit that supports AC charging up to 11 kW. Previous XM models charged at a maximum of 7.4 kW, which took over four hours to fully recharge a depleted battery. The faster charging time will likely be a welcome update for owners.
Fresh Paint, New Wheels, and Updated Interior Options
To keep the XM Label visually exciting, BMW is adding new design features for 2026. A new Individual Frozen Tanzanite Blue metallic paint option joins the color palette. Additionally, the 23-inch M alloy wheels will now be available in a Jet Black finish. BMW has also added a new “Welcome Light Animation,” designed to impress particularly in low-light conditions.
Inside, buyers can choose from three new Merino leather upholstery combinations:
- Night Blue Full Merino Leather with Vintage Coffee accents
- Black Full Merino Leather with Vintage Coffee accents
- Silverstone Extended Merino Leather with Black accents
BMW has also made rear-seat color-matching standard with every upholstery package, adding a more cohesive and luxurious feel to the cabin.
Pricing Still Unknown, But Expect a Premium
BMW hasn’t announced pricing yet for the 2026 XM Label. In 2025, the base XM started at $160,500, while the XM Label started at $186,700. Since the 2026 model will only offer the more premium Label trim, a price increase is likely.
However, the XM has struggled with sales due to its bold design and high price. By offering a more luxurious and better-equipped version with possible pricing adjustments, BMW may aim to attract more buyers without compromising the model’s performance credentials.
