The XD3 is based on the BMW X3 M40d. It is the second generation of the Alpina X-series SUV. It replaces the previous generation F25-based XD3 BiTurbo.

In March 2018, the XD3 and XD4 were introduced at the Geneva motorshow.

In left-hand drive format, the XD3 has 388hp and 800Nm. It is based on the engine from the M550dX. The engine is already homologated according to the new exhaust emissions standard Euro 6C measured according to WLTP.

In right-hand drive format, the XD3 has 326hp and 700Nm. It is based on the engine from the 540d. It is homologated according to the emissions standard Euro 6B measured according to WLTP.

The only available gearbox is the 8-speed Sport-Automatic transmission (ZF 8HP75) with Switchtronic.

The XD3 suspension is based on the X4 M40d, modified with Alpina settings and springs.

Wheels are 22-inch forged Alpina Classic wheels with 255/35 and 295/30 Pirelli Pzero tires. This results in a weight saving of 15kg (or nearly 25%) compared to traditional cast wheels of similar dimensions.

The brake system of the XD3 is identical to that of the X3 M40d.

The XD3 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.

The full-colour digital instrument panel in LED technology features a distinctive ALPINA design. In Comfort mode it offers a classic look: instruments with a blue background, red needles and clearly legible figures. In Sport mode the display changes to dynamic style with green drag indicators. It is also possible to select an Eco Pro mode. A typical Alpina feature is the centrally positioned permanent digital speed indicator.

For the exterior, the changes are limited to an Alpina frontspoiler, rear diffusor and Alpina badges on the rear. A non-cost option is the classic Alpina decor on sides of the car and frontspoiler. For production reasons, available exterior colors do not include Alpina Blue II and Alpina Green II.

For the left-hand drive version:
Acceleration from 0-100kph is 4,6 seconds.
Top speed is 266kph.

For the right-hand drive version:
Acceleration from 0-100kph is 4,9 seconds.
Top speed is 254kph.