X3 in the Market
As you can probably guess by now, the market has caught up with and in many ways passed the X3. That said, if it weren't for BMW's initiative, this segment might not even exist today, let alone offer so many robust choices; Infiniti, Acura and Land Rover also offer competitors.
While the X3's performance chops are probably better than they've ever been, that might not matter much in this segment. Buyers are looking for a certain level of luxury and features, plus mild utility and a decent price, and the X3 isn't delivering.
See also:
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