[11] Production of the XM started in December 2022 at the BMW US Manufacturing Company plant in Greer, South Carolina, with deliveries commencing in 2023.

[15] The XM's internal combustion engine, the twin-turbocharged BMW S68,[16] has been revised to have a stronger crankshaft, and the turbochargers have been placed closer to the exhaust manifold.

This trim offered a total of 350 kW (476 PS; 469 hp) and a torque output of 700 N⋅m (516 lb⋅ft) for a 0 to 62 mph (100 km/h) sprint in 5.1 seconds.

It shares the M xDrive all-wheel drive system, M Sport differential, and eight-speed M Steptronic transmission from the regular XM.

[19][20][21] A more powerful edition, named "Label Red", was announced on the same day the XM was unveiled, on 27 September 2023.