For the 2026 model year, BMW is introducing notable updates to its XM lineup, which now consists solely of the high-performance XM Label variant. The standard base trim has been discontinued, making the 738-horsepower XM Label the only version available moving forward. Alongside the trim change, BMW has made improvements to the hybrid system’s charging capabilities and has introduced new color options for both the exterior and interior, enhancing the customization potential for buyers.
The 2026 XM Label continues to draw its impressive power from a hybrid powertrain that pairs a 577-horsepower twin-turbocharged V8 engine with an electric motor situated between the engine and the transmission. This setup generates a total system output of 738 pound-feet of torque. Power is delivered to all four wheels via an eight-speed automatic transmission, maintaining the XM Label’s status as a true performance SUV. BMW claims the XM Label can accelerate from 0 to 60 miles per hour in just 3.6 seconds. As for top speed, it is electronically limited to 155 mph, though selecting the M Driver’s Package increases this limit to 175 mph.
Previously known as the XM Label Red, this variant used to offer significant performance gains over the now-discontinued 644-hp base model, as well as visual enhancements such as red-painted exterior accents. While the 2025 model started at $187,875 (including destination charges), the 2026 version sheds some of the bold red detailing, retaining only subtle red-accented badges. However, BMW has compensated for the simplified aesthetic by expanding the list of color options. One standout new choice is the Individual Frozen Tanzanite Blue metallic paint. Additionally, buyers can now opt for the standard 23-inch wheels in black, while 22-inch wheels remain available at no extra cost.
Interior customization has also been expanded. New interior themes include Individual Night Blue full Merino leather with Vintage Coffee accents, Individual Black full Merino leather with Vintage Coffee accents, and Individual Silverstone extended Merino leather with black accents. Mechanically, the hybrid drivetrain remains unchanged from the previous model. It continues to utilize a 19.2-kilowatt-hour lithium-ion battery positioned beneath the floor. The main upgrade comes from the onboard charging system, which now supports up to 11 kilowatts, an improvement over the prior 7.4-kilowatt setup. Although BMW has not released updated charging times, the faster rate suggests a noticeably reduced charging duration. The all-electric range remains at approximately 30 miles.
BMW is set to unveil the 2026 XM Label on June 14 during the 24 Hours of Le Mans event in France. Production is scheduled to begin in August at the company’s Spartanburg, South Carolina, facility. While official pricing is yet to be announced, a slight increase over the previous model’s MSRP is expected, reflecting the enhanced features and improved charging technology.