A prototype for a redesigned BMW X3 has been spotted again, this time testing at Germany's Nürburgring racetrack. The new compact crossover will be the fourth generation of the top-selling nameplate.

The current X3 arrived in 2017 as 2018 model year and was given a mid-cycle update for 2022. Based on BMW tradition, the redesigned X3 should arrive in 2024 as a 2025 model. A redesigned version of the related X4 should arrive 12-18 months later, possibly exclusively as an electric vehicle based on BMW's upcoming Neue Klasse dedicated EV platform.

The prototype is heavily camouflaged, but we can see that the proportions will be very similar to those of the current generation, albeit slightly more rounded. The shape of the headlights can clearly be seen, and the grille looks like it's taking on a taller design, although the camouflage gear has been applied to make the grille look similar to the current X3's grille.

We can't spot much of the interior, but an uncluttered dash with floating screens for the instrument cluster and infotainment hub seems to be present, as seen in the latest BMWs, including the updated 2023 3-Series and redesigned 2024 5-Series.

The platform will be an updated version of the current X3's CLAR design, which means rear-wheel drive with the option of all-wheel drive. Look for 2.0-liter turbo-4 and 3.0-liter turbo inline-6 engines, in both cases with standard mild-hybrid technology. Plug-in hybrid power will also be on offer, including potentially in the next X3 M.

The current X3 offers an electric iX3 option outside the U.S. While the iX3 uses a modified version of the CLAR platform, the next electric X3, which should come to the U.S., is expected to use BMW Group's Neue Klasse dedicated EV platform that will spawn its first model in 2025. BMW has said the first Neue Klasse model will be in the 3-Series segment. It was previewed by the recent Vision Neue Klasse concept. It will be followed by a sporty SUV, possibly the aforementioned electric-only X4.

Production of the redesigned X3 should be handled at BMW Group's plant in Spartanburg, South Carolina, where the current X3 is built. Any Neue Klasse-based variant will likely be built elsewhere, though. The first Neue Klasse EV will be built at a plant in Debrecen, Hungary, starting in 2025. Neue Klasse EVs will also be built at existing BMW plants in Germany and China, starting in 2026, and in San Luis Potosí, Mexico, starting in 2027.

BMW doesn't want to mess around with the X3. In 2022, the company sold 65,800 examples in the U.S. alone, making it the automaker's most popular vehicle here.