BMW is set to cash in on the success of its market-leading luxury SUV, the X5, with the release of the smaller X3 - the first genuine premium four-wheel drive in its class.

Built on the same platform as its volume-selling 3 Series, the X3's profile mirrors the X5 - but is 102mm shorter, has a 25mm shorter wheelbase and is 41mm lower.

The styling of the five-door, five-seater is also more dramatic, with a mix of concave and convex surfaces, known as flame surfacing - evident also on the Z4 roadster.

A long wheelbase, short overhangs and a curved roofline contribute to the car's athletic looks. Flared wheel arches and a fresh front bearing a modified double-kidney grille, quintessentially characteristic of the Bavarian manufacturer, reinforces the muscular, adventurously tenacious theme.

Freshly added to the X3 is the new xDrive system which manages torque - directing extra Nm to the front or rear as and when required by the driving conditions. During cornering it can optimise torque to an axle at any time to help minimise both under and over-steer.

Automatic Hill Descent Control (AHDC) “walks” the vehicle down tough vertical surfaces, like hill-faces and is amongst many other innovative features packed into the tidy little X3 as standard.

BMW's latest Dynamic Stability Control, eight airbags, multi-function leather-wrapped steering wheel with cruise control, 17-inch allow wheels, roof rails, rain sensor, automatic headlight control, fog lights, air-conditioning, on-board computer and a CD/radio are all included as an obligatory standard on any new X3.

A wide range of optional equipment, however, is offered to the discerning motorist with a taste for truly dynamic motoring. Amongst others, BMW will offer on release the option of a glass sunroof, adaptive headlights, Trailer Stability Control, aluminium running boards, 18-inch alloy wheels, special front seats (electric, sports and/or heated), satellite navigation and TV monitor, voice-activated controls and a premium Hi-Fi system.

The German manufacturer also offers a wide range of classic and sportier interior materials to allow buyers to personalise their cars. The X3 comes with a choice of two motor units - a 3.0-litre in-line six cylinder petrol engine and the more moderate 2.5-litre of the same.

The X3 2.5i arrives with either a six-speed manual or a five-speed automatic StepTronic transmission with sequential shift override. The manual enters the market in Australia for $65,300 (AUD). The automatic being slightly pricier at $67,900 (AUD). Check prices in your local region by contacting your nearest BMW dealer or consulting the official website.

The X3 3.0i is available only with five-speed StepTronic transmission as an obligatory inclusion, at $74,500 (AUD).

John Kananghinis, general manager of marketing and communications with BMW Group Australia said the X3 continued the company's all-new model offensive and created a new niche. However, buyers might be a little more reluctant to put the blue & white roundel above other staunch players in the cheaper end of the already-established small SUV market, including Toyota and Subaru.