Few things make arriving in Melbourne on a cold winter’s morning feel worthwhile. Especially when you’ve just left the sun-soaked streets of Brisbane. But picking up the keys to a 2025 BMW 540d xDrive from BMW Australia? That’ll warm you up real quick.

Parked out the front of BMW Australia’s head office, the 540d looked every bit the modern executive express, understated yet undeniably purposeful. Our test car, finished in Oxide Grey Metallic, wore the M Sport package (fitted as standard on all Australian delivered 540d’s) like a perfectly tailored suit. It’s not shouty, but there’s a quiet confidence in the way it sits. Sharper bumpers, sculpted side skirts, and that wide, low stance give it presence without the need for gimmicks.

The kidney grilles are slimmer and more horizontal than before, flanked by sleek Adaptive LED headlights with a focused, almost predatory gaze. The proportions are spot on too. Long bonnet, short overhangs, and a shoulder line that carries all the way to the muscular rear arches. It's a car that looks just as comfortable pulling up to a client meeting as it would winding through the hills.

It doesn’t scream for attention, but when you walk up to it, key in hand, it has that special something. That quiet sense of occasion. That BMW “rightness” that only a few brands seem to consistently nail.

And then, of course, I opened the door, slid into the cabin, and fired it up...

Slide into the cabin of the 540d, and it immediately sets the tone for what this car is all about - effortless, confident refinement. Hit the start button and you’re greeted not by clatter or grumble, but by the barely-audible hum of BMW’s latest 3.0L straight-six diesel that produces 223kW and 670Nm.

Paired with 48-volt mild-hybrid assistance that recuperates kinetic energy under braking for conversion into electrical energy, it’s buttery-smooth and surprisingly quick off the mark.

Around town, the 540d is a masterclass in composure. The 8-speed ZF gearbox slips through ratios like silk, and the low-end torque (reminder, a monstrous 670Nm) means you’re never caught out when you need to dart into a gap or cruise up an incline. Even in Comfort mode, there's a solid connection between your foot and the drivetrain which is responsive, and never twitchy.

The ride quality is, as expected, genuinely impressive. With adaptive dampers, the car irons out potholes and suburban speed humps with a grace that borders on arrogance. Road noise is minimal. Engine noise? Virtually nonexistent unless you really prod it. It feels, in every sense, like a luxury car first, performance car second. And yet, when you find yourself on an open backroad in rural Victoria...

How does it behave when pushed?

Put it in Sport or Sport Plus and the 540d reveals its other side. The steering weights up, the throttle response sharpens, and suddenly this understated exec sedan starts to show real bite. It’s not trying to be an M5 (which is an entirely different breed of animal that we can’t wait to test out) and it doesn’t need to. The chassis is taut, balanced, and sure-footed thanks to the ridiculously clever xDrive all-wheel drive system. It’s not an edge-of-your-seat kind of sporty, but it’s deeply satisfying.

Coming out of a corner, the diesel torque surges you forward like a wave — muscular and linear. There’s no waiting, no downshift drama, just instant forward motion. Grip is plentiful, especially on the staggered 21-inch setup. It leans more toward grand touring than outright aggression, but make no mistake: the 540d can hustle when it needs to.

Braking performance is solid and progressive. The pedal feel is nicely modulated, not grabby, and inspires confidence even on tighter downhill stretches. In dynamic situations, the car shrinks around you, it feels smaller and lighter than it is, a hallmark of well-engineered German sedans, and one in particular that BMW absolutely nails the brief on, every single time.

Fuel economy? Actually brilliant.

This is where the 540d really flips the script. Despite its size, power, and performance, it returns fuel economy figures that border on wizardry. We saw an average of 5.8–6.2L/100km during a week of mixed driving between city commutes, highway stretches, and spirited weekend/backroad runs. You’re looking at over 1,000km of real-world range from a single tank.

And no, it doesn’t feel like a compromise. In fact, for anyone doing big km or long stints, it makes more sense than a petrol 6 or plug-in hybrid. It’s powerful, refined, and ruthlessly efficient.

Inside the cabin: Modern, clean, very BMW:

The 540d inherits BMW’s latest interior language: curved dual-screen display, flush HVAC controls, and minimalist switchgear and the cabin has a genuinely calming ambience. The materials are top shelf, featuring soft leathers, ambient lighting that subtly wraps around the cabin, and trim finishes that feel expensive, not just flashy. Wireless Apple CarPlay and Android Auto are standard, as is a crystal-clear Bowers & Wilkins audio option that’s worth ticking the box for.

Rear-seat comfort is equally as impressive. There’s excellent legroom for adults, even behind taller drivers, and the outboard seats are nicely contoured and supportive without feeling firm. Headroom is ample despite the sloping roofline, and the rear bench gets its own climate zone, along with air vents, USB-C charging ports, and fold-down armrest with cupholders. Perfect for road trips or the school run.

Kids will have no trouble getting in and out, and the wide-opening doors make fitting a child seat simple thanks to well-positioned ISOFIX points.

Connectivity-wise, the 540d doesn’t miss a beat. As we’ve mentioned previously, Wireless Apple CarPlay and Android Auto are standard, along with a fast pairing and a high-res central touchscreen that’s easy to navigate. There’s also a wireless charging pad up front, dual USB-Cs in the centre console, and more in the rear, meaning everyone stays connected, no matter where they’re sitting.

Boot space comes in at a generous 520 litres, with a wide aperture and low load lip making it easy to throw in luggage, shopping, or a couple of golf bags. The rear seats fold down 40:20:40 for added flexibility, and there’s underfloor storage for cables or smaller items you’d rather not have rolling around.

Servicing & Ownership Costs:

BMW’s Condition-Based Servicing (CBS) system means the car monitors oil, brake pads, fluid levels and usage patterns to alert you when it’s time for a service, rather than sticking to a strict calendar schedule.

In typical usage, you’ll be looking at servicing roughly every 12–18 months or 15,000–20,000km, whichever comes first. BMW’s Service Inclusive Basic plan can be added at purchase, covering 5 years or 80,000km of servicing from around $2,000 AUD at time of writing, which makes it a no-brainer if you’re planning to keep the car long-term.

And thanks to the diesel’s exceptional efficiency, real-world running costs are significantly lower than you’d expect from a premium sedan with this level of performance.

QUICK SPECS:

2025 BMW G60 540d xDrive:

Engine: 3.0L inline 6-cylinder turbo-diesel mild hybrid
Transmission: 8-speed automatic
Power: 223kW @ 4000rpm
Torque: 670Nm @ 1500–2500rpm
0–100km/h: 5.2 seconds
Kerb Weight: 1905kg
Power-to-Weight Ratio: 117kW/tonne
Average Fuel Consumption: 6.5L/100km
CO2 Emissions: 172g/km
Fuel Tank / Range: 60L / approx. 923km
Warranty: 5 years / unlimited kilometres
Service Interval: Condition-based self-diagnosis
Dimensions (L/W/H/Wheelbase): 5060 / 1900 / 1515mm / 2995mm
Cargo Capacity: 520L
Turning Circle: 11.8 metres
Ground Clearance: 154mm
Towing Capacity (Braked / Unbraked): 2000kg / 750kg
ANCAP Safety Rating: 5 stars
Price From (AUD): $134,900

Standard Spec Highlights:

20” M alloy wheels
Metallic paintwork
BMW Iconic Glow illuminated kidney grille surrounds
8-speed Steptronic automatic transmission
Tyre Pressure Monitor
Tyre Repair Kit
Adaptive Suspension Professional (Integral Active Steering, Adaptive Suspension)
Alarm System
Automatic tailgate
Comfort Access
M Sport Package
BMW Iconic Glow Exterior Package
M Sport Brake, Dark Blue Metallic
Interior Trim, Carbon Fibre and high-gloss silver threads, Dark Silver M accents
Travel & Comfort System
Interior Camera
Ambient light
Panorama Glass Roof (non-opening)
Through loading system
Sport seats
Lumbar support - front
Seat heating - front
Driving Assistant Professional
Parking Assistant Professional
Automatic Air Conditioning - 2-Zone
Adaptive LED headlights
Intelligent Emergency Call
TeleServices
BMW ConnectedDrive Services
Connected Package Professional
Bowers & Wilkins Surround Sound (655-watt,18 speakers)
Wireless Charging Tray
Personal eSim
BMW Live Cockpit Professional
Natural Interaction
DAB+ Radio
M Leather Steering Wheel
BMW Individual Leather ‘Merino’ Upholstery
5-year BMW Warranty

The Verdict:

The 2025 BMW 540d xDrive might just be the ultimate all-rounder in the 5 Series lineup. It’s not the flashiest, nor the most headline-grabbing variant, but for those who crave long-legged range, genuine pace, and silent luxury, it’s an absolute gem.

While the world moves toward EVs and petrol-hybrid blends, this diesel holds its own as a compelling option. It’s the kind of car that doesn’t need to shout. Because it knows exactly what it’s capable of.