When BMW introduced the X5 to the market in 2000, it was BMW's maiden entry into the Sports Utility Vehicle category. The first X5 came with a 4.4 liter V8 engine and in 2001 a 3.0 liter engine. Though the new engine was more powerful than the earlier engine, its off-road performance left a lot to be desired. BMW continued to ring in the changes in the X5 engine, with the introduction of the X5 4.6 in 2002. The new vehicle was introduced with a 4.6 liter V8 engine. BMW added better stability control to the vehicle so now people could hitch trailers to the X5. The vehicle also got a CD player. In 2005, the new refurbished X5 hit he roads. The front of the vehicle got a new look with headlights that were ringed with chrome, better lights to combat fog and a new all-wheel drive called Xdrive. This system could transfer all its power to one wheel, whereas the older one could not do so.

The older vehicles had a major disadvantage, they could only seat five. This was corrected in the year 2007, when the second generation of X5's hit the road. The company now added a third row of seats so the vehicle could seat seven, though the third row can only seat children. The 2007 X5 has added 7.4 inches in length and a new chassis made of steel and the front suspension made of aluminum. The new X5 also gets more space to stuff one's goods in the back. The vehicle is now available in two body types, the 3.0si with a 6 cylinder engine and the 4.81 which comes with a V8 engine. Both the 3.0si and 4.8i are available with 18 inch tires, xenon headlights, wipers that are able to smell rain, the IDrive system and a cd player that is inside the glove box. Safety of the passengers has been taken care of with airbags placed in the seats in the front and airbags on the side for all the passengers. The BMW X5 has new antilock brakes for all 4 tires, and a stability system that will warn the driver if there is a danger that the vehicle will roll over.