After sales of the 2010 X3 peaked at 6,075 units last year, BMW went back to the drawing board and redefined the X3 as we know it. The all-new 2011 BMW X3 has everything its scrawny predecessor didn’t. The new X3 has better handling, more horsepower and is more fuel efficient than ever. It also features a longer and wider body that makes this SUV not only handle better, but also look better.

Cars.com writes: “With a slightly larger size, a new eight-speed automatic transmission and standard all-wheel drive, the five-seater combines signature BMW driving prowess with crossover utility.”

With the exciting new changes, the X3 now challenges its rivals for the top spot in the luxury SUV class. Although it’s very competitive against models like the Audi Q5, Lexus RX 350, Mercedes GLK 350 and Nissan EX35, consumers have welcomed the changes BMW has made. In the first three months of this year, X3 sales in the US more than quadrupled over the same period last year, selling almost as much as all of 2010 combined.

The 2011 BMW X3 is equipped with a 240 horsepower, naturally aspirated, 3.0-liter inline six-cylinder engine that is fuel efficient. The X3 is also available in the high-performance xDrive35i trim that includes the 300-horsepower 3.0-liter turbocharged six-cylinder engine, which surpasses the best horsepower rating of many of the X3’s top competitors.

With either engine, the 2011 X3 comes standard with all-wheel drive and a highly efficient eight-speed automatic transmission with manual shift capability. Despite adding length and power to this year’s model, the xDrive28i is rated to get 19 mpg in the city with a 26 mpg highway mileage rating.

Of the features that have been redesigned, the most impressive is the new revamped suspension. BMW claims the new electronic damping system is so fast that when the front wheels hit a bump, it can adjust the damping before the rear wheels hit the bump, creating a sporty yet smooth ride.

The interior of the X3 has also received significant improvements. The additional rear space allows passengers to ride in the rear seat with optimal comfort and legroom. Sight lines have been improved as passengers sit higher, allowing for easier entry and exit. There’s also an optional panoramic moonroof that gives the cabin an airy, airy feel.

With the upgrades to the interior and exterior of the X3, consumers would have to assume that the price of this top-of-the-line SUV would increase, right? Your assumptions would be wrong then. At $37,625, which is $2,100 less than the 2010 X3, all the hype for this 2011 model is well deserved.

With BMW expanding its factory in Spartanburg, South Carolina, this marks the first year the X3 has been built in the United States. With the new X3 taking the 2011 luxury SUV class by storm, consumers will continue to look for great things to keep coming out of Spartanburg.