Price-busting EV luxury: BMW iX3 40 slips below LCT threshold to rival Mercedes-Benz GLC, Audi Q6 and Lexus RZ

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BMW Australia has slid its forthcoming iX3 medium electric SUV beneath Australia’s Luxury Car Tax (LCT) threshold with a new, entry level variant known as the iX3 40. 

Priced from $89,900 before on-road costs, BMW’s base model electric midsizer will avoid an additional 33-percent tax applied to any dollar figure exceeding $91,387 – the current LCT threshold for fuel efficient vehicles – and be eligible for a Fringe Benefit Tax (FBT) exemption. 

It undercuts its stablemate – iX3 50 – by $20,000, and will face an ever growing list of well equipped and well priced rivals when it debuts in July, primarily contending the $84,500 Lexus RZ, $99,900 Audi Q6, and soon-to-launch Mercedes-Benz GLC electric. 

Not only is it more affordable than the range-topper, it also undercuts the previous-gen iX3 M Sport ($91,000 before on-road costs) which only managed 460km WLTP driving range.

Unlike its range-topping iX3 50 sibling, the forthcoming iX3 40 is rear-wheel drive. Outputs are 235kW and 500Nm, meaning, the iX3 40 can sprint from 0-100km/h in 5.9 seconds (claimed). 

A smaller 82.6kWh battery makes for a still-excellent driving range of 635km (WLTP) and rapid 10-80 percent battery recharge time of 21 minutes, peaking at 300kW DC. Recharging from empty-to-full on AC power takes around four hours and 15 minutes thanks to 22kW AC charging.

The base-model iX3 will use 500V electronic architecture, rather than the 50’s 800V system, meaning it misses out on the range-topping iX3’s DC-peak of 400kW.

It debuts BMW’s Neue Klasse design language and platform, shared by a next-generation 3 series due early next year, and later, a heavily updated 7 series. 

Highlight standard equipment on the BMW iX3 40 includes:

• 20-inch wheels
• Ambient lighting
• Automatic tailgate
• Heads-up display
• Harman Kardon sound system
• M Sport Package with blue brake calipers, spoiler
• Panoramic glass sunroof 
• Electric adjust heated front seats
• Heated sports steering wheel
• Frunk
• Tyre pressure monitoring system
• Veganza upholstery
• Wireless device charger

The new BMW iX3 is expected to go on sale before August this year. 

BMW iX3 2026: prices in Australia

All prices listed are before on-road costs.

• iX3 40: $89,900
• iX3 50 xDrive: $109,900