When BMW launched the X3 in 2003, I, like most other people I have encountered, was convinced not only that Chris Bangle was smoking more than his socks, but also that BMW had lost the plot. After all, the X5 was a car for which people seriously considered selling their organs on the black market the X3 was...well...not quite.

Yes, it ascribed to the same basic design language BMW employed for the X5, but it just didn't come out in the same way.

It was the ugly duckling, really, with lines that were quirky and styling cues that were just not consistent enough with the brand's overall design language. Yet despite the X3's physical shortcomings, it also proved to be hugely successful in the global market, and especially so in South Africa when you look at how many of them are gracing our roads. I was exceptionally thankful then when the German carmaker launched the second generation X3 onto the local market last year, in my launch report calling it phenomenal. After spending a week driving the entry-level xDrive20d model, I'm even more convinced.

The X3's most obvious improvement is without a doubt in the styling department. While I was initially disappointed with the too familiar, too conservative look, it's grown on me faster than I thought it would and I'm almost proud to say that I now appreciate the subtlety employed throughout. It is immediately identifiable as an X3 thanks to the designers taking certain cues from the previous generation and incorporating it into the new design (take a look at the shape of the taillights, for example).

The front stance is masculine yet understated, with the LED corona rings adding some menace to the X3's face. The side proportions and lines mimic that of the previous generation, although a new shoulder line that descends from back to front brings in some character. The rear is in my opinion the X3's best angle, cleverly combining the powerful aggression of the X5 with styling cues from the first generation X3. Overall, the X3 is more stylish than its predecessor and will in my opinion age very well.

Inside the X3 is typical BMW, meaning high quality materials, fit and finish, as well as unique design features (such as the asymmetrical centre console). There's a multitude of large storage compartments, trays and cup holders, while the rear seat backs are split in a 40:20:40 ratio. The luggage compartment offers volume ranging between 550 and 1600 litres, the largest in the segment. Space is subsequently no problem and has reinforced my belief that an average-sized family would not need a larger SUV.

The X3 xDrive20d is fitted with BMW's familiar straight four-cylinder diesel engine with an aluminium crankcase, turbocharger and Common Rail direct injection, mated to a superb 8-speed automatic gearbox. The 2.0-litre unit delivers power of 135kW at 4 000r/min and maximum torque of 380Nm between 1 750 and 2 750r/min. Acceleration to 100km/h takes 8.5 seconds and on to a top speed of 210km/h. Fuel consumption is a claimed 5.6-litres/100km with carbon emissions at 147g/km.

Used for the first time in combination with the 8-speed autobox is an Auto Start Stop function that switches the engine off automatically when waiting at traffic intersections, for example. The X3 is additionally equipped with a gear-shift indicator as well as a full complement of EfficientDynamics that includes brake energy recuperation, Electric Power Steering, demand-controlled ancillary components, intelligent lightweight construction and run-flat tyres with reduced rolling resistance.

As indicated by its nomenclature, the X3 comes with xDrive permanent four-wheel drive technology as standard. Its electronic control unit, which is interlinked with the Dynamic Stability Control, counteracts at an early stage any tendency to oversteer or understeer through fast and precise response. By means of innovative tuning designed to enhance driving dynamics, it optimizes not only traction but also handling in bends. Optional Performance Control enhances handling even further. As we've come to expect from BMW, the choice of optional features are substantial, with my usual warning to study the packages and lists available.

In standard guise, the X3 xDrive20d retails for R472 309 excluding carbon tax but including a 5-year/100 000km Motorplan maintenance plan with BMW On-Call. As Mercedes-Benz is not offering the GLK in South Africa, the X3's main rival from Germany is the Audi Q5 2.0 TDI Quattro (125kW, 350Nm, R424 085). It's slightly down on power and torque compared to the X3, not to mention size, but is one of Audi's best selling models globally. Other, less premium options would include the Honda CR-V 2.2 iD-TEC Executive (110kW, 350Nm, R445 983), the Kia Sorento 2.2 4X4 (147kW, 436Nm, R405 995), the Land Rover Freelander SD4 HSE (140kW, 420Nm, R499 995), Nissan Pathfinder 2.5 dCi LE 4X4 (140kW, 450Nm, R522 100) and the Volvo XC60 D3 Geartronic (120kW, 400Nm, R447 400).

Despite its more conservative styling approach, the new X3's evolution into a stylish and complete SAV is remarkable. While the X1 is perhaps more affordable, not everyone can live with its quirky styling, whereas the X5 is perhaps a bit too ostentatious for someone who's looking for a luxurious yet practical way to transport his family. The X3 fits perfectly in between these two and does what it's supposed to do exceptionally well. It strikes a perfect balance between size, specification and driver enjoyment and is, quite simply, phenomenal.