The BMW 5 Series remains a strong contender in the executive sedan segment, though it now faces increased competition. While German luxury cars are a niche market in Australia, the 5 Series continues to deliver a high-quality experience, particularly with its diverse range of models – from all-electric i5 variants to the high-performance M5. This review focuses on the 540d xDrive, a diesel-powered option that balances luxury with practicality.
Interior: Luxurious, Yet Overly Digital
The 5 Series’ interior is undeniably luxurious, boasting high-quality materials and a sleek design. However, BMW’s push towards digitalization is evident, with nearly all controls integrated into the curved infotainment screen. While visually striking, this reliance on touchscreens and haptic interfaces feels excessive, sacrificing tactile feedback for a minimalist aesthetic. The build quality is excellent, making it competitive with Mercedes-Benz and Audi, but the abundance of glossy plastic surfaces is prone to smudging and aging quickly.
Despite these drawbacks, the cabin remains comfortable and ergonomic. The seats are plush, and the high central armrest creates a lounge-like experience. The customizable ambient lighting and high-end audio options add to the luxurious feel, but mastering the infotainment system takes time.
Performance and Handling: Smooth and Refined
Under the hood, the 540d xDrive features a 3.0-liter inline-six turbo-diesel engine paired with a 48V mild-hybrid system. This setup delivers 223kW of power and 670Nm of torque, providing smooth, effortless acceleration. The all-wheel-drive system ensures secure handling in various conditions.
The ride quality is impressive; the suspension effectively manages rough roads without sacrificing comfort. In sportier modes, the car firms up, reducing body roll and enhancing cornering stability. BMW’s driving tech further enhances the experience, with adaptive cruise control and lane-keeping assist working seamlessly.
Pricing and Competition
At $136,900 before on-roads, the 540d xDrive is among the priciest non-performance 5 Series variants. Competitors include the Mercedes-Benz E300 ($132,000) and Audi A6 45 TFSI S Line ($123,600). The Genesis G80 3.5T Signature Sport ($127,200) also poses a strong challenge, offering luxury features at a lower price point. The electric i5 models range from $155,900 to $219,900, while the M5 starts at $261,700.
Storage and Space
The 5 Series offers adequate storage space, with a wireless charging pad, cupholders, and a center console storage box. The rear seats are spacious, but the middle seat is narrow and raised due to the driveline hump. The boot is decently sized but smaller than those of its German rivals, offering 20 liters less than the Mercedes E-Class and 10 liters less than the Audi A6.
Final Verdict
The 2026 BMW 540d xDrive delivers a refined driving experience with a luxurious interior and powerful engine. While the overly digital controls may deter some, its comfort, handling, and advanced tech make it a competitive choice in the executive sedan market. Despite facing strong competition from established rivals and emerging luxury brands like Genesis, the 5 Series remains a compelling option for those seeking a well-rounded, high-performance vehicle.
