The BMW XM may be one of the most controversial M cars of the modern era, but that isn’t stopping BMW from applying the LCI treatment in the form of some surgical upgrades. For 2026, the XM portfolio is being streamlined to a single model, the BMW XM Label, and BMW M has given it a targeted series of improvements designed to keep it fresh in a fiercely competitive segment.

Here’s what’s new, and why we think that — for all the enthusiast groaning — the XM Label still plays an important role in BMW M’s lineup.

What’s New for 2026

The 2026 XM Label isn’t just the most powerful roadgoing BMW M model ever produced — it’s now the only XM you can buy.

BMW has sharpened the XM’s appeal with:

  • Increased AC charging speed, now up to 11 kW (up from 7.4 kW), making topping up the 19.2 kWh battery notably quicker.
  • New exterior options, including BMW Individual Frozen Tanzanite Blue metallic paint and Jet Black 23-inch M alloy wheels.
  • Enhanced interior trims, with three new BMW Individual Merino leather “Interior Worlds,” plus new standard rear seat comfort cushions.
  • A new Welcome Light Animation for added visual drama when unlocking the car.

The XM Label retains its headline specs: 738 hp and 738 lb-ft of torque from a hybrid V8 + electric motor powertrain, with 0-60 mph in 3.6 seconds and an optional 175 mph top speed. Production begins this August at BMW’s Spartanburg plant.

Why Keep the XM Alive?

Now, let’s address the elephant in the room: many BMW enthusiasts still see the XM as emblematic of what’s wrong with BMW M today — a hyper-lux SUV that weighs over 6,000 lbs and leans more toward spectacle than pure driving involvement.

We get it. The XM is not an M2 CS or an M3 Touring. But here’s why we think BMW M isn’t wrong to chase this market:

Profit drives passion. The high margins on vehicles like the XM Label directly fund the enthusiast-pleasing models many of us love — and the motorsport efforts that underpin the M brand. No M Crossovers, no M2 CS. Simple as that.

Brand visibility matters. The XM is a rolling billboard for M performance in markets (think China, the Middle East, the U.S.) where big, brash luxury SUVs are not only accepted — they’re required.

Technology showcase. The XM Label is also a test bed for M’s hybrid performance tech, which will inevitably filter down into more enthusiast-friendly M cars as BMW transitions toward electrification (in hybrid and EV form).

The Bottom Line

No, the XM Label won’t win over every BMW M diehard. But BMW has smartly focused its flagship SUV offering with meaningful updates for 2026. Faster charging, richer customization options, and continued power dominance ensure the XM Label remains competitive against rivals like the Lamborghini Urus, Aston Martin DBX707, and Ferrari Purosangue.

More importantly, the XM Label plays a critical behind-the-scenes role: helping ensure that M can keep building cars for all of us who still dream of inline-six engines, rear-wheel drive, and Nürburgring lap times.

Sometimes, the most important M cars aren’t the ones you’d put in your garage — they’re the ones that help make the garage possible.