BMW launched the X5 for 2000 as one upscale model powered by a 4.4-liter V8 engine mated to a five-speed automatic Steptronic transmission. It comes standard with 18-inch wheels. For 2002, power from the 4.4-liter V8 has been increased to 290 horsepower.

For 2001, the 3.0i model was added with a 2.8-liter six-cylinder engine. It comes standard with a five-speed manual gearbox (ZF Type C); BMW's five-speed Steptronic is optional. The X5 3.0i comes standard with 17-inch wheels.

For 2002, the 4.6is has joined the model line with a 4.6-liter V8 rated at 347 horsepower and 354 pounds-feet of torque. That falls under the category of mega-horsepower. It comes with a five-speed Steptronic transmission similar to the one found on the X5 4.4i, but it's programmed for a more sporting character and uses a different top gear ratio. The 4.6is comes standard with 20-inch wheels with W-rated 275/40 tires in front and 315/35 tires in the rear that are wide enough to impress Fred Flintstone. Unique trim cues distinguish this model, including a rear air diffusor, wind splitters at the sides of front and rear bumpers, a titanium-finish bumper grille, Shadowline trim with clear turn signal and side marker lenses, and big dual chrome oval exhaust outlets. Xenon high-intensity discharge low-beam headlamps and rain-sensing windshield wipers are standard.

All 2002 models have been upgraded with an in-dash CD player as standard equipment, optional automatic headlight control, and more options for seat adjustments. Adjustable ride height is a new option on the 3.0i and 4.4i models (not available on 4.6is). Other option packages have been added.

To help keep drivers on the road and in control, all X5s come with full-time all-wheel drive and Dynamic Stability Control, which includes traction control, electronic brake proportioning, Dynamic Brake Control, an electronic stability program, and Hill Descent Control. X5s benefit from a four-wheel independent suspension, four-wheel anti-lock disc brakes, and rack-and-pinion steering.