The final M20 engines were fitted to the E30 3 Series wagon (estate) and convertible model built in April 1993.

[18] A Solex 4A1 four-barrel carburetor was used in the M20B20VE ("VE" is for vergaser- "carburettor" in German),[20] and it has a compression ratio of 9.2:1 and a redline of 6,400 rpm.

In September 1982 (coinciding with the release of the E30 3 Series), the fuel injection was updated to LE-Jetronic with a redline of 6,200 rpm.

[23] In 1987, the M20B20 was again revised with the addition of Bosch Motronic engine management, a catalytic converter and a compression ratio of 8.8:1.

Fuel injection was K-Jetronic, the compression ratio is 9.5:1, the power output is 105 kW (143 PS; 141 hp)[14] and the redline is 6,400 rpm.

In September 1983, the M20B23LE's fuel-injection, exhaust and camshaft were upgraded and power increased to 110 kW (148 hp) with a redline of 6,500 rpm.

The 102 kW (137 hp) version continued to be available in certain markets with strict emissions regulations (such as Switzerland) until replaced by the 325i.

[33][23] The compression ratio was reduced to 8.8:1 but thanks to the more sophisticated electronics power remained nearly as before, at 125 kW (170 PS; 168 hp).

The initial version, called the M20B27ME, produces 92 kW (123 hp) and 240 N⋅m (177 lb⋅ft) at 3,250 rpm for models without a catalytic converter.

In the United States, BMW's corporate average fuel economy was at risk of not meeting requirements by 1984, primarily due to higher sales of their bigger, more expensive cars in the early 1980s.

[36] In late 1987, the fuel injection was upgraded to Motronic 1.3 on the US market plastic bumper 325e and 528e 'Super Eta',[37][38] the cylinder head changed to the "885" version, the compression ratio was reduced to 8.5:1 and the redline increased to 5,200 rpm.

In the early 1990s BMW South Africa used components from the Alpina C3 2.7 to produce an E30 specifically for Stannic Group N production car racing.