The 2027 BMW X2 M40 xDrive has been spotted undergoing hot-weather testing in Spain, revealing several design changes despite heavy camouflage. The upcoming performance-focused crossover is expected to replace the current X2 M35i xDrive name and could bring more power along with a redesigned interior and Neue Klasse-inspired styling.
BMW X2 M40 xDrive Expected to Replace M35i Badge
Spy photographers captured the next-generation BMW X2 during testing, showing updated production bodywork beneath extensive camouflage. The X2 has become increasingly important for BMW in recent years, with its larger dimensions and sloping roofline contributing to the departure of the X4, although an electric version of the larger coupe crossover is still expected.
The prototype seen with four exhaust tips is expected to arrive for 2027 under the new X2 M40 xDrive name, replacing the previous X2 M35i xDrive designation. The updated badge could suggest additional power, although the current model already produces more than the 190-horsepower Acura ADX.
Performance Upgrades Could Bring More Power
The current BMW X2 35i produces 312 horsepower from its turbocharged 2.0-liter four-cylinder engine, making it the most powerful version of BMW’s B48 engine. If the model moves to the M40 name as expected, it could indicate a stronger performance focus.
However, the M40 designation has traditionally been associated with vehicles using BMW’s B58 3.0-liter turbocharged inline-six engine. That engine is considered too long to fit transversely in the X2, meaning the new performance model is expected to continue using the four-cylinder engine with increased output.
The change would follow BMW’s recent use of larger performance badges on vehicles with different powertrains. B58 engines now appear in models carrying M50 badging, while vehicles previously using M60i badging are receiving the M70 suffix in the era of electrification.
Aftermarket tuners have managed to exceed 500 horsepower from the existing engine without installing a larger turbocharger, suggesting additional power from the factory engine could be possible.
New BMW X2 Interior Gets Panoramic Vision iDrive
The upcoming BMW X2 will also receive interior updates, including the Panoramic Vision iDrive system. The setup will feature a free-standing touchscreen display in the center of the dashboard for infotainment, while major driving information will be projected across the base of the windshield and span the width of the cabin.
The redesigned cabin is also expected to include new seats and a new steering wheel. The prototype appears to avoid the four-spoke steering wheel design used in newer Neue Klasse vehicles such as the iX3 and i3, although the airbag and side spoke design appear similar.
Neue Klasse Styling Comes to the BMW X2
The next BMW X2 will feature a completely redesigned front end inspired by the Neue Klasse design language. The new look includes two narrow, vertically aligned kidney grilles and a mask-like fascia that connects into the headlights.
A large central intake will sit below these elements, and the high-performance version is expected to feature a split lower intake design inspired by the M Vision Neue Klasse concept.
The familiar sloped roofline will remain, along with prominent rear haunches. At the back, the fastback-style design will flow into a large spoiler below the rear glass, while a sharply dropping rear section will be finished with a tall diffuser panel and gloss black details.
A quad-exit exhaust system with round tips will complete the sportier appearance. BMW is also expected to offer different wheel designs and brake caliper color options.
BMW X2 Reveal Expected Before 2027
The full lighting design and final exterior details remain under wraps, but the new BMW X2 is expected to be revealed before the end of the year or in early 2027.
The upcoming X2 M40 xDrive will bring a more aggressive design, updated technology, and a revised performance identity as BMW continues developing its next generation of crossover models.
