BMW has pared back the power of the 4.4-litre twin-turbo V8 petrol engine found in the latest M5 performance sedan and wagon, as well as the XM SUV, in order to meet incoming emissions laws in Europe.
The German automaker said the latest Euro 7 emissions regulations, due to come into effect in Europe in November 2026, will see the M5’s V8 drop from 430kW to 400kW – with the hybrid system making up the shortfall to keep total system output unchanged at 535kW.
The changes stem from the introduction of the Miller Cycle internal combustion process, which the automaker says improves fuel efficiency and reduces emissions, along with “improved exhaust retreatment”.
The reduction in power from the petrol V8 has been offset by an identical increase from the electric motor integrated into the M5’s transmission, resulting in unchanged on-paper combined power.
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A torque figure for the revised V8 hybrid system hasn’t been supplied, with the current M5 in Australian showrooms delivering 750Nm from as low as 1800rpm.
BMW hasn’t disclosed a specific power reduction for the XM’s V8, which it said will run the same Miller Cycle as part of its Euro 7 compliance strategy, but confirmed the SUV’s combined hybrid output will remain unchanged at 550kW.
The announcement came as part of BMW’s 2026 model-year updates for Europe, which will see M5 models produced from March 2026 adopting the new tune, followed by BMW XM SUVs from April.
BMW Australia told CarExpert there are currently no changes planned for Australian showroom models, with the updates limited to vehicles sold in Europe.
Australia – along with the United Kingdom – has no official date for the introduction of Euro 7 rules for new vehicles, with Australia instead adopting Euro 6d-equivalent emissions regulations from December 2025.
BMW recently scrapped previous plans to drop V8 and V12 engines from its range, citing “above average demand” in key markets such as North America as a factor in the decision.
It comes as Mercedes-Benz is also preparing a next-generation V8, which it says will be ‘electrified’ – meaning paired with a hybrid system similar to the M5’s – for future flagship luxury and performance models including the next S-Class and CLE63 AMG.
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