BMW is changing things up for the 2026 model year, combining two versions of a vehicle and merging them into one.

And this ultimate driving machine, to borrow the automaker’s old advertising tag line, is the most powerful road-going vehicle from BMW and its M division.

Keep in mind, it’s not the quickest vehicle in the automaker’s portfolio but in sheer horsepower levels, it is the most powerful. It’s also not a car.

We’re talking about the XM sport utility vehicle.

Starting with the 2026 model year, this SUV will only be available as a single model, the top-line BMW XM Label.

XM Label powertrain

It has an M Hybrid powertrain combining a V8 engine with 577 hp and an electric motor integrated into the vehicle’s eight-speed M Steptronic transmission providing up to 194 hp.

The XM Label has a total system output of 738 hp and 738 lb.-ft. of torque, making it the most powerful BMW M production model ever.

For 2026, the plug-in hybrid powertrain is gaining a faster on-board charger, now capable of charging speeds of up to 11 kW, up from 7.4 kW.

XM Label performance

Zero to 100 km/h acceleration takes 3.8 seconds, BMW said.

The top speed is electronically limited at 290 km/h, on models with the M Driver’s Package, which is standard in Canada.

What we’re losing in 2026 is the non-Label version of the XM, which has a hybrid powertrain with 644 hp and 590 lb.-ft. of torque.

“The most powerful roadgoing BMW of all time sets new standards with its extroverted design while demonstrating why BMW M stands for the Ultimate Driving Machine,” BMW Group Canada said in a news release.

“This is a view shared by world-famous British musician, techno and house DJ Carl Cox. In a joint project with BMW M, he has woven the sounds of the BMW XM – such as the powerful bass of the V8, the welcome chime, and the sound of the hood closing – into an aural celebration. The result underscores Carl Cox’s passion for BMW M automobiles and is just as unique, extroverted, and confident as the XM itself.”

New options

The automaker said the 2026 XM Label has new options available, including BMW’s Individual Frozen Tanzanite Blue metallic paint, a new welcome light animation, and 23-inch M alloy wheels available in a jet black finish.

On the interior, there are three new design themes to choose from, including Individual Night Blue Full Merino Leather with Vintage Coffee accents, Individual Black Full Merino Leather with Vintage Coffee accents, and BMW Individual Silverstone Extended Merino leather with Black accents.

Additionally, rear seat comfort cushions now match the colour of the seat surfaces on all Individual Merino Leather upholsteries.

Price and production

The BMW XM Label is produced in South Carolina, and production of the 2026 model will begin in August.

The Canadian price is $220,000.

For vehicle updates, visit the BMW Canada website.

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