The E70 featured the torque-split capable xDrive all-wheel drive system mated to an automatic gearbox.

[2] BMW marketed the X5 officially as a "Sports Activity Vehicle" (SAV),[3] rather than an SUV, to indicate its on-road handling capability despite its large dimensions.

[5][6] The X5 is primarily manufactured in North America, at BMW Group Plant Spartanburg.

The X5 is also modified for armoured security versions, at the BMW de México Toluca plant.

It was developed shortly after BMW Group's acquisition of British off-road vehicle manufacturer Land Rover.

[8] The first generation X5 shares many components with the Range Rover (L322) model (specifically the hill descent control and off-road engine management systems).

The second generation featured key improvements, including BMW's iDrive system as standard across models, and an optional third row of seats for increased seven-passenger capacity.

[9] The M Performance variant was unveiled at the New York Auto Show in April 2009, and went on sale in September 2009 (2010 model year).

Sharing its drivetrain with the X6 M, the X5 M featured BMW's first turbocharged M Power V-8, producing 555 bhp (414 kW) and 500 lb⋅ft (680 N⋅m) of torque.

BMW added a Plug-in Hybrid Electric Vehicle model (the xDrive40e), which was powered by a turbocharged inline-4 engine.

The result is a combined power output of 290 kW (389 hp) from its larger 24 kWh battery pack.