It sits smack bang in the middle of BMW’s soon-to-be seven-strong SUV lineup, but the second generation X4 is anything but middle of the road.

Designed alongside the mid-sized X3 it shares so much with beneath the skin – that’s important, because the original X4 was more of an afterthought - the X4 is dynamically sharper and sleeker to the eye, while also delivering more interior space.

Combining traditional SUV staples with extra dollops of sporty BMW character has created an SUV that is instantly more compelling than the original.

Not that the X4 is perfect. It’s still an acquired taste and one that comes with a price premium, its unique body and additional equipment adding to the cost.

Pricing will be confirmed closer to its September arrival, but expect it to start somewhere close to the $73,900 entry point of the outgoing X4.

For that you get a car that stands out, in part because of more cohesive tail lights and its toothy nose, the BMW gills on proud display (look closely and they house vents that open and close to actively control engine cooling).

Key to the X4’s appeal is its design, following in the coupe-inspired wheel tracks of the larger X6.

The falling roof line and truncated tail give it a unique flavour, while more pronounced rear wheel arches covering wider tyres that sit 30mm further apart than they do in the X3 reassert its athletic genealogy.

For Australia, X4s will also get the M Sport styling package as standard, bringing more aggressive bumpers for a bolder expression, particularly up front.

But the X4 is more than the look, as we learnt driving away from the factory it emerges from in South Carolina in the deep south of America.

Suspension that has been tightened teams with fluid steering for an athletic SUV driving experience.

It’s clear BMW wants the X4 to be among the more engaging mid-sized SUVs, trading some comfort for a sharper-edged drive delivered courtesy of the standard M Sport suspension tune.

Running on large 20-inch runflat rubber, our car gave off some signs of struggling to elegantly supress bumps, a small chink in the otherwise composed ride.

Granted, the roads were generally smooth and well made, making for easy progress, but the occasionally jagged edge caught it out with a thunk. We’ll reserve final judgement until we try it on sloppy Australian backroads.

Yet the X4 is a car that best showcases its talents the harder you drive it, maintaining its stance when pitched hard at corners, albeit breaching the limits of the front tyres first in predictable understeer.

Initial impressions are it’s a sharper drive that its closest rival, the Mercedes-Benz GLC Coupe.

Adjustable dampers firm when Sport mode is selected, the steering also subtly building resistance.

Our test involved some sliding around on a skid pan and laps of BMW’s American test track, where the X4 held up impressively to the punishment.

However, the new locking rear differential for the M Sport model – Australia will initially get the petrol-powered M40i but could later pick up the M40d diesel – only works once you switch off the electronic stability control, something few will do.

Get bold and aggressive, though, and the car will slide around more at its relatively high limits, the locking diff amplifying the rear-biased drive for an occasionally taily experience when reapplying power.

Push it well over its limits, though, and the front wheels race to the rescue, the X4 relishing a thrash for an opportunity to showcase its dynamic prowess.

Engines are identical to those employed in the X3, the 20i kicking the range off with a modest 135kW and 290Nm from its 2.0-litre turbo.

An uprated 185kW/350Nm version of the same engine powers the 30i. It’s a deliciously smooth and free-revving unit that thrives on revs. Smooth gear shifts and an almost imperceptible stop-start system complete the refined yet fun experience.

If it’s real grunt you’re chasing, though, the 3.0-litre six-cylinder turbo muscles up in the 40i, making 265kW and 500Nm and promising to take you to 100km/h in 4.8 seconds.

Diesel has been the best seller for BMW’s SUVs, but the X4 is switching things around. Australia will initially only offer the least powerful of the four diesel engines available overseas, the 20d.

With 140kW and 400Nm, performance should be stout, with fuel efficiency as low as 5.4L/100km.

We briefly tried the M40d, which gets a diesel engine making 240kW and 680Nm. It’s a car not slated for Australia - for now at least - although it was an important taste test of the M Performance thinking.

What it lacks in that traditional high-revving nature on display in the 30i it makes up for with a mid-rev thwack as you press the throttle. No issues with performance, the M40d able to touch 100km/h in 4.9 seconds.

The X4 cabin is traditional BMW, the centre stack subtly tilted towards the driver. Some stylised M4 metallic plaques spice up the elegant and functional layout.

The larger of the touchscreens available in the X3, measuring 10.25 inches in diameter, is standard for the X4, teaming with the elegant partial digital dash for an upmarket driver interaction.

It works beautifully with the latest iDrive controller, replete with seven quick-select buttons to take you to the main menus.

But it’s out back where the X4 gets its biggest change, the result of the unique roof line.

The rear seat is snug and supportive, in line with the excellent front pews. And the additional 54mm between the front and rear wheels – matching that of the X3 – makes for generous rear legroom.

While kids will be an easy fit, taller people may have to tilt their heads slightly, the sloping roof line taking its toll.

Combined with a 40/20/40 split-fold rear seat and usefully sized boot it makes the X4 a practical machine. There’s even underfloor storage for valuables, the boot floor rising effortlessly courtesy of a gas strut support.

All of which adds up to a more convincing X4 than the original.

It’s stepped up its sporty focus while increasing practicality and space, something that boosts the overall appeal and better justifies its price premium over the X3 it shares so much with.

2018 BMW X4 specifications – X4 xDrive 30i, X4 M40i

On sale: September, 2018

Price: $75,000 - $110,000 (estimated), plus on-road costs

Engines: 2.0-litre 4-cylinder turbo / 3.0-litre inline six-cylinder turbo

Power: 185kW at 5200-6500rpm / 265kW at 5500-6500rpm

Torque: 350Nm at 1450-4800rpm / 500Nm at 1520-4800rpm

Transmission: 8-speed automatic, AWD

Fuel use: 7.3L/100km / 9.2L/100km

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