The second generation BMW X3 is one of the most awaited BMW models in 2010. With Audi Q5 and Mercedes-Benz GLK looking to gain market share in the mid-size SUV market, BMW has no choice but to get the design right.

The current X3 sales have exceeded their expectations throughout the years, but there is still room for improvement. Moving up in size, will allow the X3 to be positioned at the level of the first X5 model, but at a lower price.

Several test mules have been already spotted in Europe and on U.S. soil, but as usual, the funky camouflage hides the fine details, opening  the door for more speculations and rumors. Sources close to BMW came to clear some of the mystery around the 2011 BMW X3 and also to provide new information: X3 Hybrid…anyone?? X3 M?

The “kicked-up” window line that first saw the light of day in the X3 will be evident as it is now an X3 characteristic and a design element that will be associated with the X3. Although the current car has earned a lot of bad response because of this feature . The new sloping roof on the X3 begins a better interpretation of this feature. As the roof slopes downwards the glasshouse rises to give a quarter light that is more like the kicked up shape as seen on the new X1.

The next X3 will be a very huge moment for BMW because it will be launched in the market aimed at customers who want a really dynamic SAV. The weekend car to the daily 3er and by that the customer should not miss out on an engaging drive.

As seen with the X1 we are not offering the latest Turbo charged Six Cylinder this will be featured in the X3 because of it’s more unique positioning.

Later after the launch BMW will introduce an Active Hybrid X3 which will use a mid-line diesel powerplant, but further down the line BMW will adapt in petrol or diesel , a six cylinder, four cylinder, and a three cylinder to a hybrid drivetrain for use in the 1er and 3er and their variants. By 2015 every core BMW model will have either a full or mild hybrid and that is across the core range.

The X3 will be eagerly awaited because of BMW’s decision to entirely base the new X3 on the next generation platform that will be found underneath the 3er. Will there be an X3 M? it all depends on market response but BMW are now cultivating “Sub Brands” such as seen on the 320d ED.

BMW will wait till the cars response which could see a portfolio of models strictly under “Efficient Dynamics” , The Tri-Turbo diesel which is on the radar could be sold under a sub brand similar to (but not under) BMW M to distinguish these performance diesels from their regular counterparts.