2026 BMW 5 Series Review – 540d xDrive

For over 5 decades, the BMW 5 Series has been synonymous with a well engineered and all rounded executive saloon car. It’s one of the most respected nameplates in the car business. Together with close rivals Mercedes-Benz E-Class and Audi A6, the 5 Series has defined the luxury midsize sedan segment. It’s also one of BMW’s most important models, constantly tasked with showcasing some of the German brand’s latest innovation and technology.

Now in its eighth generation, the latest 5 Series is still a statement of power, exclusivity and desirability. But it now has to compete with luxury SUVs for market relevancy, something its predecessors never had to. What is the 5 Series bringing to the table this time around and how is that going to help it navigate the tricky automotive landscape?

From the outset, it seems like BMW wanted something different for the new 5 Series model and it’s all evident in the styling. This is the most radically designed 5 Series ever, though the fifth generation E60 model came close second. When first official photos of the new 5er were dropped in late 2024, they were hard to digest for many, us included. Now that it’s in front of us, our eyes taking it in in the flesh, we have to say it looks far better than in photos.

Of course, the design still and will divide opinions, but BMW styling of late has been back on the controversial bandwagon, the M2 and electric 3 Series are fine examples. Nevertheless, there’s no denying that the 5 Series makes bold visual statement and its road presence is unmistakable. In the backdrop of increasingly generic looking new cars coming into market every so often, the 5 Series stands out as something with a bit of personality and charm.

In Australia, the simplified 5 Series line-up is made up of just 2 core models, the entry-level 520i and the upper-spec 540d xDrive, priced respectively at $116,900 and $136,900 before on-road costs. The next model up from here is the mighty M5 which retails at $262,900 plus ORCs.

We drove the 540d xDrive, which is essentially a replacement for the previous 530d. As its name suggests, the 540d gained all-wheel drive and a mild-hybrid setup with more power. It has quite a substantial increase in standard equipment over the 530d, as well. This more than justifies the ‘mere’ $5,500 price hike over the old model. Our test car has just one option fitted – a set of 21-inch BMW Individual aerodynamic wheels style 954 in Bicolour Jet Black.

Draped in Oxide Grey metallic paint work and dressed up in a host of standard fitment M Sport details, our 540d looks absolutely stunning in metal. We all agreed we’d spec it exactly the same way if we were buying our own 5 Series.

The interior is state of the art. It certainly has the wow factor the moment you hop in. One of the main highlights is the digital display panel consisting of a massive 14.9-inch infotainment touchscreen and a 12.3-inch driving instrumentation cluster. These are some of the highest resolution displays we have ever seen in a vehicle. Powered by BMW’s latest Operating System 8.5, it’s like a computer on wheels, there’re so many features and applications that you could easily spend hours exploring them. Afraid not, despite the myriad of functions the touchscreen is quite intuitive with well thought out menu structures and on-screen buttons that large enough for easy operation on the move.

The infotainment system supports Apple CarPlay and Android Auto, both connect wirelessly. Your favourite tunes are played through a 655 watts Bowers & Wilkins surround sound system with 18 speakers. It’s seriously one of the most immersive audio systems fitted to any vehicle, with ultra high clarity and deep bass.

The other highlight is the so called BMW Interaction Bar. It might sound like a fancy name for some cabin ambient lighting strips, but there’s a reason for its name. These are not conventional static lighting strips but animating light tubes integrated into the dashboard, centre console and door cards. Depending on scenarios the light tubes play a symphony by changing colour tone and patterns. For instance it performs a “welcome” when you enter the car, or flashes as a warning when the door is not safe to open. When functioning as ambient lighting, you can customise the colour or link the colour to drive modes. It’s pretty cool.

The interior build quality is second to none. Everything feels very high quality, from the tactility of the knobs and switches to the texture and grain of the Merino leather upholstery. Panel alignment and fitment is flawless, too. Compared to previous 5 Series models, the new interior feels like a big step up, and against the competition it certainly sits at the very top.

Cabin comfort is way up there, as well. The seats are incredibly comfortable, with the front pews providing ample support while contouring perfectly to your body. The rear outboard seats have adequate bolstering so you don’t slide around in corners. While space in the back is generous, the rear middle passenger does have to put up with a large centre hump in the footwell. Further back, the 520-litre boot is at the smaller end of the scale compared to rivals.

There’re a few interior quirks. Like the rest of the current BMW range, the new steering wheel has simplified controls so there’re fewer buttons. Functions such as adaptive cruise control following distance and lane keep assist activation have now moved to the centre touchscreen. Is it essential for them to be on the steering wheel? Probably not but it’d be nice to have them at your finger tips.

In tune with the modern and contemporary theme of the dashboard design, BMW has concealed the air vents. It’s a sleek touch no doubt, but it’s made adjusting the direction of the vents less straightforward. You use a small slider at the base of the vents to adjust the louvers, but because the louvers are hidden you can’t really see their exact direction. Rather, you have to rely on physically feeling the airflow.

All other climate control functions are now operated from the touchscreen, including fan speed, temperature adjustment and seat heating. It’s matter of getting used to for those not so fond of digital buttons but we’re guessing it’s all designed to be set and forget – leave everything in auto and never worry about it after. Physical switches are retained for media and volume controls, navigation and drive modes, but they are located in the centre console just in front of the centre armrest. We find this location less ergonomic as operating them requires taking your eyes off the road.

Lastly, the shade for the vast panoramic glass roof retracts from the rear which is a bit unusual. Obviously it’s rear passenger bias but not every 5 Series owner is chauffeured in the back. Perhaps, a better design would be to have separate front and rear shades.

Onto the oily bits, it feels odd to say this in 2026 but the 540d’s turbodiesel engine is an absolute gem. Displacing 3.0 litres, the in-line six cylinder engine produces 223kW of power and 670Nm of torque, the latter on tap between 1500rpm to 2500rpm. Those are some mighty figures, which translate to a 0-100km/h dash in just 5.2 seconds, but what’s truly impressive is the refinement, responsiveness and linearity in its power delivery. Supplemented by a 48-volt mild-hybrid system, the powertrain is eager and gutsy in all proceedings, making the drive effortless be it in town or on the freeway. It’s quiet as well with hardly a clatter to be heard. It’s rare to find a diesel mill that drives and feels so similarly to a petrol engine.

The engine pairs incredibly well with the 8-speed automatic transmission and all-wheel drive system. The whole package feels like a cohesive part, working discretely in the background without once bringing attention to itself. Also seamless is the idle stop start which relies on the mild hybrid electric generator to spin up the engine. The result is an imperceptible, jolt-free engine start up.

The xDrive all-wheel drive is rear biased which means it retains the sporty driving feel that the 5 Series is renown for with the added assurance of AWD grip. Push the big saloon into a corner at speeds and it obeys without a fuss. Pile on the throttle on corner exit and the rear remains tidy allowing full power transfer to the tarmac.

The steering is bang on accurate, too, with just the right amount of heft and feedback for the driver to know what’s going on under the front axle. It’s pleased to know that the 5 Series is still very much a driver’s car and kudos to BMW for once again getting the dynamics right.

Make no mistake, the sporty handling is in no way a compromise to ride comfort, for the ride quality is excellent thanks to those adaptive dampers. In normal drive mode, road imperfections are smoothed out with aplomb, with only the nastiest of bumps and ruts make it through to the cabin. Of course, a Mercedes-Benz E-Class or Genesis G80 is still softer, but the BMW is close.

One of the advantages of fitting a diesel engine into a large vehicle like the 5 Series is that you get really good range out of a single tank of diesel. On paper the 540d averages a very efficient 6.5L/100km. Even more impressive, our real-world tested average with around 450km of mixed driving returned a thriftier 6.3L/100km. Those figures translate to about 950km of range from its 60L fuel tank, amazing.

At a glance, safety is taken care by Autonomous Emergency Braking (AEB), Adaptive Cruise Control, Blind Spot Alert, Rear Cross-Traffic Alert, Lane-Departure Warning and Lane-Keep Assistance, Road Sign Recognition, front and rear parking sensors and 360-degree camera.

BMW continues to offer condition-based servicing for its vehicles including the 5 Series. Unlike having a set servicing schedule based on distance or time interval, the 540d’s servicing is determined based on how the car is driven. This means servicing is more frequent if the car is often used for short distance travel or in extreme cold condition, or less frequent otherwise. Normally, the 540d’s servicing interval is 12 months or 20,000km.

The BMW Service Inclusive Basic package covers your scheduled servicing needs for 5-year/80,000km, whichever comes first. Priced at $3,355, the Basic package includes your annual vehicle checks, oil changes, all filters, spark plugs and labour costs for the duration of the package.

The 5 Series comes with a five-year/unlimited-kilometre factory warranty which is currently the norm for premium brands.

Verdict

2026 BMW 540d xDrive pricing and specification

Price (excluding on-road costs):	From: $136,900 As tested: $139,100 Options fitted: 21” BMW Individual aerodynamic wheels 954, Bicolour Jet Black – $2,200
Warranty:	5 years/unlimited kilometre
Warranty Customer Assistance:	3-year roadside
Service Intervals:	Variable or 12 months/20,000km
Country of Origin:	Germany
Engine:	3.0-litre in-line 6 cylinder turbodiesel, 48V mild hybrid: 223kW @ 4,000rpm, 670Nm @ 1,500-2,500rpm Electric motor: 13kW / 200Nm
Transmission:	8-speed automatic
Drivetrain:	All-wheel drive
Combined Fuel Consumption (L/100km):	Claimed: 6.5/ Tested: 6.3
Fuel Capacity (L):	60
Body:	4-door sedan, 5 seats
Dimensions (L/W/H/W-B):	5,060/1,900/1,515/2,995
Kerb Weight (kg):	1905
Towing Capacity (kg):	Braked: 2,000 /Unbraked: 750