The D3 S is based on the BMW M340dX. It is the first diesel-engined model of the Alpina 3-series offered only as all-wheel drive. Also, it is the first Alpina model with mild-hybrid drivetrain.

The D3 S replaces the sedan and touring versions of the previous generation F30-based D3 BiTurbo.

In May 2020, the D3 S was introduced in a press release, as the 2020 Geneva Motorshow was cancelled.

In May 2022, the facelift version of the D3 S was introduced.

The D3 S engine is based on the BMW 340d engine, which has been modified to 355hp and 730Nm. The engine is supported by energy recuperation by a 48V starter generator. The 11hp electrical mild-hybrid power support ensures responsiveness to gaspedal inputs at low engine speeds.

The only available gearbox is the 8-speed Sport-Automatic transmission (ZF 8HP76) with Switchtronic.

An electronically controlled limited slip differential is standard, ensuring a rear-wheel drive bias.

The D3 S has adaptive sport suspension with electronically adjustable dampers, performance springs, bump stops and stabilisers. The suspension is modified with Alpina settings.

Wheels are 19-inch Alpina Dynamic with 255/35 and 265/35 Pirelli P Zero tires specifically developed by Pirelli for Alpina. The Dynamic wheel design was last offered on the E90-based 3-series in 2012. Optionally 20-inch Alpina Classic wheels are available.

The performance brake system – adopted from the G30 B5 BiTurbo Allrad – features four-piston fixed brake calipers in blue with Alpina lettering and floating brake calipers at the rear. Brake disks are 395mm (front) and 345mm (rear). Optionally, high-performance drilled disks and high heat-resistant pads are available.

The D3 S undergoes the same interior changes as usual with Alpina. Cluster gauges are custom Alpina with classic blue background combined with steering wheel trimmed in Lavalina leather. Additionally, interior trim is fine Alpina wood or piano lacquer with Alpina logos. A no-cost option are Alpina badges in the seats. Optionally, a custom interior in Lavalina leather can be ordered.

For the exterior, the changes are limited to an Alpina frontspoiler and Alpina badges on the rear. A non-cost option is the classic Alpina decor on sides of the car and frontspoiler. Available exterior colors include Alpina Blue and Alpina Green II.

Acceleration from 0-100kph is 4,6 seconds for the Sedan version and 4,8 seconds for the Touring version. Topspeed is 273kph for the Sedan version and 270kph for the Touring version.