Diesel is not dead! 2025 BMW 5 Series range gains new diesel grade to sit along electric car variants as it battles Mercedes-Benz E-Class and Genesis G80

BMW is not giving up on diesel, with the German giant confirming the arrival of an oil-burning version of the new 5 Series sedan.

The new grade, dubbed the 540d xDrive, lands later in the year, about 12 months after the launch of the eighth-generation executive saloon in November last year.

Pricing will be revealed closer to the launch, but the diesel 5 Series will sit above the entry-level petrol-powered 520i sedan ($114,900 before on-road costs), but likely under or close to the all-electric i5 eDrive40 ($155,900) and the M-fettled i5 M60 xDrive ($215,900).

A wagon version of the M60 xDrive is also available, topping the range at $219,900.

The 540d xDrive uses a 3.0-litre six-cylinder turbocharged diesel engine, with 48-volt ‘mild hybrid’ technology, for a total system output of 223kW of power and 670Nm of torque.

It drives all four wheels via an eight-speed torque converter automatic transmission and the big sedan can launch from 0-100km/h in just 5.2 seconds.

BMW says the fuel consumption for this new grade is 5.8-6.3 litres per 100 kilometres on the combined cycle.

The Australian 540d will come standard with the M Sport Package and that includes sporty flourishes, 20-inch alloy wheels and metallic paint. It also gains an illuminated kidney grille and adaptive LED matrix headlights.

Inside you get niceties like leather upholstery, a 655W Bowers & Wilkins surround sound system, and BMW Operating System 8.5.

In Europe BMW has just added this grade, another entry diesel variant, and new plug-in hybrid versions of the both the sedan and wagon. Given the low sales figures for large luxury sedans Down Under, it’s unlikely that any new grades will make it here for the time being.

BMW is enjoying solid sales growth with the new 5 Series - its sales are up by 110 per cent compared with the same period last year.