IT'S not an illusion. Cars really are getting larger. Though many of us might choose to believe car park spaces are shrinking.

Nowhere is the expanding car's size better illustrated than a glance at the dimensions of the latest BMW X3 - would you believe it's actually several centimetres longer than the original version of the big brother X5 back at the turn of the century.

It's wider too. And to complete the transformation, it's no surprise the current model is more luxurious, faster and less thirsty. It goes without saying, the 2026 X3 is also pricier.

We borrowed the 2.0-litre diesel. Yes, BMW is one of a few makers that still produce oil-burners and reckon - quite correctly - that they play a vital role in the SUV sector, particularly for those who tow or carry heavy loads.

Not everyone falls in love with the tall, angular and somewhat boxy shape of the X3. But it's practical and distinctive, even more so with that huge kidney grille and squinty LED headlights.

Anyone who believes diesels to be unrefined and noisy needs to get behind the wheel of this X3. It's quiet, gutsy and so smooth with oodles of torque to call on. Sure, there's a gruffness about engine but that can easily be translated as a sporty snarl.

And together with hybrid assistance you get a spacious five-seater capable of squeezing around 45 miles from a gallon of juice. Our own average came close at 43.7mpg.

All X3s are four-wheel-drive and fitted with an eight-speed automatic gearbox which marries up well with the 197bhp engine. Not exactly abundant power but sufficient to propel it to 62mph in under eight seconds which is quick enough for most of us. Pick-up is rapid and you're seldom left wanting for more oomph.

As is BMW's fashion, steering and handling have a sporty edge, and the X3 feels more dynamic and better planted on the road than most rivals.

The cabin echoes other models in the range with a huge rectangular screen that stretches from directly in front of the driver across to the passenger area. It largely works well, but, as usual, there's too many on-screen controls that require you to take your eyes off the road.

A large iDrive rotary knob on the centre console acts as a master control and helps you navigate the touchscreen, which handles everything from heated seats to driving modes.

There's ample space up front with generous head and legroom. Storage space is available in a central box as well as under the fascia and door pockets accommodate clutter plus water bottles. Those in the rear are also well catered for in terms of head and legroom.

Boot space at 570 litres is up there with the competition. The platform is quite high but flat and regularly shaped. Rear seats split and fold to increase cargo capacity.

Tough and comfortable with better dynamics than you would expect from a tall 4x4, the latest X3 continues a tradition of blending practicality with prestige and performance.

£54,485

2.0-litre, 197bhp, 4cyl diesel mild hybrid engine driving 4 wheels via automatic gearbox

134mph

7.7sec

48.7

: 33

153g/km

37%

3yrs/60,000 miles

4.6