Ask most enthusiasts about the origins of German all-wheel drive, and the answer is nearly always the same: Audi Quattro. But while Ingolstadt’s rally weapon hogged the spotlight in the early 1980s, BMW was quietly preparing its own take on all-weather traction—one that would arrive without fanfare, but ultimately shape the trajectory of the brand for decades to come. That car was the E30 325iX, BMW’s first all-wheel-drive model, revealed 40 years ago at the 1985 Frankfurt Motor Show.
Built on the second-generation 3 Series platform, the 325iX was never meant to chase rally glory. It had a different goal: to bring BMW’s renowned driving dynamics to snow belts and alpine climates where rear-wheel drive had its limitations. It succeeded—with engineering restraint, mechanical cleverness, and a drivetrain layout that prioritized the brand’s core values.
Rear-Biased Traction, Munich Style
While BMW didn’t market the system as xDrive—that wouldn’t come until 2004—the hardware in the 325iX laid the groundwork. The permanent AWD setup used a viscous coupling in the center differential to split torque 63% rear, 37% front, preserving a distinctly rear-drive feel. A second visco lock in the rear differential further aided traction, ensuring confident behavior without sacrificing balance.
The powertrain was otherwise familiar: a naturally aspirated 2.5-liter M20 inline-six mated to either a 5-speed manual or 4-speed automatic. But everything forward of the transmission was reimagined—front driveshafts, a chain-driven transfer case, and revised front suspension geometry to accommodate driven front wheels. Weight was up by around 130 kg over a standard 325i, but so was year-round usability.
North America received only the sedan variant; BMW never imported the wagon. Production began in 1986, and while total global output reached around 30,000 units, the 325iX remained a low-volume specialist—a mountain-town oddity in a sea of E30s.
Early Praise, Limited Reach
Critics were impressed. Auto Zeitung called the 325iX a “handling champion,” applauding its composure in adverse conditions. The AWD system may not have been as sophisticated as what followed, but it struck a rare balance: traction without numbness, security without sacrificing agility. Still, it wasn’t a mainstream hit. The added complexity and cost kept the 325iX from mass-market appeal, and rear-wheel drive remained the enthusiast’s default. But for those who lived with snow six months a year, the iX offered something rare—a BMW that didn’t need to be garaged in January.
The 525iX: Technically Impressive, Commercially Forgotten
BMW expanded the formula in 1991 with the E34 525iX, bringing all-wheel drive to the 5 Series for the first time. It featured a more complex system—still rear-biased at 64%, but now controlled by electronically managed multi-plate clutches in both the transfer case and rear differential. Inputs came from the ABS sensors, allowing the drivetrain to adjust in real time based on wheel speed differentials.
It was technically impressive, but the cost was steep. The 525iX was heavier, thirstier, and slower than its rear-drive counterpart, and buyers didn’t bite. By the time production ended in 1995, just under 10,000 units had been sold—barely a footnote in 5 Series history. The E39 skipped AWD altogether.
From Niche to Mainstream: The 1999 X5 and the xDrive Era
All-wheel drive returned to BMW in a very different form: the 1999 X5. Marketed as the world’s first Sports Activity Vehicle, the E53 X5 was built on a modified 5 Series platform, but with a new AWD system based on planetary gearsets. Torque was split 38:62, aided by DSC, Hill Descent Control, and Automatic Differential Brake (ADB-X). It marked the first time BMW approached all-wheel drive as more than just a winter convenience—it was now a lifestyle play.
The true turning point came in 2004, with the debut of xDrive. This fully variable system could send 100% of torque to either axle in milliseconds, governed by steering angle, throttle input, and stability control data. First launched in the facelifted X5 and the new X3, xDrive quickly spread across the 3 and 5 Series, and eventually became a staple in nearly every BMW model line—from crossovers to M cars to EVs.
Looking Back at the 325iX
In hindsight, the E30 325iX wasn’t just a one-off experiment. It was a strategic hedge—a test bed that proved BMW could engineer an AWD system without diluting the driving experience. It wasn’t the fastest E30. Or the most collectible. Or the lightest. But it was quietly influential.
Forty years on, the iX badge is back—on electric crossovers instead of sedans—and xDrive is now standard fare in large swaths of the BMW portfolio. But none of it would have happened without that quietly innovative sedan from 1985. The 325iX didn’t scream for attention. It just worked. In the snow. In the rain. And temporarily in the shadow of Quattro.