For years, if you were looking for a new sports sedan, you’d likely ask, “How much horsepower does it have?” “What’s it like on the track?” and “How quick can it get to 60 mph?” Once you’ve done a bit of research and answered these questions, models from BMW’s M Division generally come close to the top of the short list, and the BMW M3 always rules it.
However, BMW may have just accidentally knocked the M3 off the top with the release of another, softer-edged and more approachable sports sedan that still delivers all the goods. It’s been 35 years since the M3 first debuted and ruled the U.S. sports sedan market, but the M340i is the performance sedan you want this year.
Luxury Sports Sedans Aren’t Going Anywhere Anytime Soon
While we go on about how the SUV and pickup truck market rules here in the U.S., brands have not given up on the sports sedan. In recent years, the segment has evolved into a faster, more refined, and far more everyday-usable one compared to the solely fire-breathing machines of the past. It has become a proving ground for technology, hands-on driver appeal, and versatility.
Models like the Alfa Romeo Giulia blend Italian stylings with rapid 0–60 mph times; the Cadillac CT5-V Blackwing proves you can still have American muscle and finery, and models like the Mercedes-AMG C63 S E Performance are causing all sorts of issues for the market stalwarts, thanks to a hybrid turbo-four with 671 horsepower on tap and 0-60 time of less than four seconds. Some lean hard towards luxury and others towards outright performance, and while the SUV market dominates the sales charts, it is the sports sedan market that shows off what a marque can do for driving lovers.
How The BMW M3 Became The Go-To Sporty BMW
The BMW M3 has earned its reputation by keeping to a specific philosophy: take the compact, well-balanced 3 Series platform and turn everything up without losing the fundamentals. Early models like the E30 M3 were built for homologation needs, but they also introduced high-revving engines, near-perfect weight distribution, and a chassis tuned for precision rather than outright comfort.
As the years have rolled on, the formula has adapted with the times, with naturally aspirated inline-sixes giving way to V8s, and eventually to turbo-sixes, but the focus on sharp front-end response, driving balance, and engaging steering has always been epic.
Technically, what has made the M3 so good over the years is how deeply BMW’s M Division reworks the base car. You get reinforced subframes, stiffer bushings, wider tracks, better suspension systems, bespoke braking, and far more powerful engine choices. What we usually get from an M3 is a car that feels great in a straight line and can be put through its paces in the corners. So, there is not a lot to hate about it.
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The BMW M340i Does A Lot, And It Does It Cheaper
It is clear that we are fans of the M3 here, but despite our love for it, it may not be the most sensible buy this year versus its less powerful sibling: the 2026 BMW M340i. There are two grades of the new M340i, one with rear-wheel drive and the other with all-wheel drive, and prices for them start over $15,000 cheaper than the M3. Pricing for the 2026 M340i is as follows.
|
2026 Model |
MSRP |
|---|---|
|
BMW M340i (RWD) |
$61,550 |
|
BMW M340i xDrive (AWD) |
$63,550 |
$60K is not a cheap performance sedan any way you look at it, but according to BMW, the 2026 BMW M3 has starting prices of $78,400 for the “entry-level” trim.
Near M3 Performance Without The Hardcore Edge
Just comparing the prices would be silly; a new Giulia has a starting price just shy of $45,000, so it’s a lot cheaper than both the M3 and the M340i, and it still offers up to 280 horsepower on tap. Where the new M340i looks to be the smarter choice is in the engine it is equipped with and the output of it. The 2026 M340i specs are as follows.
|
Spec |
2026 BMW M340i |
|---|---|
|
Engine |
3.0-Liter Twin-Turbocharged Inline-Six |
|
Transmission |
Eight-Speed Automatic |
|
Horsepower |
386 hp @ 5,200 – 6,500 rpm |
|
Torque |
398 lb-ft @ 1,900 – 4,800 rpm |
The new BMW M3 boasts a 473-horsepower 3.0-liter turbo-six, while the M3 Competition is far more powerful, with a maximum output of 523 horsepower from the inline-six under the hood of the xDrive model.
Speed And Power You Can Actually Enjoy Every Day
Despite the vastly more powerful engine in the M3, though, the M340i is comparably no slouch. Reports say that the new base-trim M3 can hit 60 mph in as little as 3.9 seconds, while the M3 Competition xDrive can scorch to 60 in as little as 2.8 seconds. However, BMW says that the new M340i can still sprint to speed in 4.4 seconds if you opt for rear-wheel drive or 4.1 seconds if you go for the all-wheel drive model.
Yes, it is marginally slower than the entry-level M3, but if you want a sports sedan that can be used every day and still put around the track, then we doubt the 0.3-second difference is going to irk most people. Especially because of the price difference. The new M340i delivers but doesn’t give you a feeling of excessive, rip-your-face-off speed at the lights.
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Where The 2026 BMW M340i Really Delivers
Just because the M340i is cheaper, may be seen as not a real M to some, and is slightly slower than its brutal M3 counterpart, doesn’t mean that it still isn’t made for driving like you stole it.
According to the 3 Series’ 82 out of 100 overall rating on J.D. Power (which incorporates the M340i), you aren’t missing out. The J.D. Power rating includes a very reputable reliability rating of 81 out of 100, and more importantly, a driving experience rating of 84 out of 100.
Turbocharged Straight-Six Performance That Feels Very BMW
The new M340i is equipped with BMW’s TwinPower B58 turbocharged inline-six, arguably one of the best BMW engines ever created. Horsepower and torque are staunch, and power is delivered with a punch over a broad, usable torque curve that starts very low in the rev range and stays stable through the mid-band. This isn’t an engine where you don’t have to chase the redline to enjoy it.
The engine under the hood of the M340i uses a twin-scroll turbo, high-precision direct injection, and variable valve timing (Double VANOS), so you get a smooth yet very urgent feel underfoot. The B58 is a closed-deck design, so you get a lot of rigidity that allows high cylinder pressure without ruining composure, and even with the integration of a 48-volt mild-hybrid system to plug any lag gaps, you don’t get something that feels electric.
What really sets it apart, though, is how it retains the character of BMW sixes. It is designed for mechanical silkiness that its rivals’ modern turbo-fours can’t replace, and a subtle yet noticeable exhaust note that builds as you lean into it more. You don’t get the aggressive and high-strung power of the S58 used in the M3, but that is exactly why the M340i is a smart choice; it’s made for composed, engaging, and still enjoyable use every day.
xDrive Balance And Grip That Work In The Real World
You might think that if you opt for the more expensive xDrive model, you lose some of the “purer” RWD fun that the base model offers. This isn’t a problem, though; the xDrive AWD system is designed to make the M340i still feel like a rear-wheel-drive sports sedan, just with an added layer of intelligence.
When you are driving normally, the system maintains a rear-biased torque split, sending the majority of the power to the rear axle to keep things balanced. The front axle only comes alive when it is needed. So when you plant your foot or when there are rapid changes on the road you’re driving on and reduced traction, the system kicks in and shores up the ride.
Mechanically, it relies on an electronically controlled multi-plate clutch in the transfer case, which varies torque distribution in real time. The system adjusts on the fly, and does so preemptively (not just reacting to slip). Alongside the stability control system and rear differential, the M340i feels naturally composed and confident every day and in the wet. Just what you’re after, really, if you don’t live on a track.
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The Sweet Spot The BMW M340i Hits
The BMW M3 may be the more raucous of the two and will outpace most M340i drivers in most scenarios, but if you want a sports sedan that acts like it should when you hit the gas, in the corners, and when you’re on the commute, the M340i just gets it right.
Comfort And Refinement That Deserves Respect
Where the M3 leans into its dual-purpose nature with stiff springs, aggressive seating options, and a constant sense of tension in the chassis, the M340i is slightly more dialed back to feel genuinely relaxed when you aren’t chasing apexes. The Adaptive M suspension soaks up bumps in the road with a level of compliance that the M3 arguably doesn’t offer, and even on larger wheels, the M340i is designed to be subtle.
Inside, it is the same. The M340i gets a cabin design that is as modern as the M3’s. You get BMW’s Curved Display as standard, which combines a 12.3-inch instrument cluster with a 14.9-inch central touchscreen, both of which run the iDrive 8.5 interface. It’s the same hardware architecture you get in the new M3, but it’s toned down with less performance telemetry overload and more everyday focus.
The dash is fitted with soft-touch Sensatec as standard, while optional Vernasca leather for the seats, door panels, and armrests is available. The M3 leans harder into motorsport with more aggressively bolstered seats and a more track-focused philosophy. In the M340i, the brushed aluminum or open-pore fine wood trim options, ambient lighting, and softer-feeling design make it all feel a lot more accessible.
The M340i doesn’t lose out on comfort; the standard sports seats are designed for a blend of long-distance comfort and track use; the thick-rimmed, leather-wrapped, and M-badged steering wheel is comfortable on and off the track, and the noise cancellation does a very good job of keeping out wind noise.
The M340i is designed as a slightly softer sports sedan than the M3. However, both the M3 and M340i can arguably be called practical for their class. The new M3 and M340i both have an impressive 16.9 cubic feet of storage space with the seats in place and 40:20:40 split-folding seats. Compared to the new BMW M3, the 2026 M340i’s passenger space dimensions are as follows.
|
2026 BMW M340i |
2026 BMW M3 |
|
|---|---|---|
|
Headroom (Front/Rear) |
38.7 Inches / 37.6 Inches |
40.6 Inches / 37.8 Inches |
|
Shoulder Room (Front/Rear) |
56 Inches / 54.6 Inches |
56 Inches / 54.6 Inches |
|
Legroom (Front/Rear) |
42 Inches / 35.2 Inches |
41.6 Inches / 35.6 Inches |
Interior space is comparable, but again, it will cost you an awful amount less for effectively the same level of room inside the M340i.
Lower Running Costs Than The M3 Make Long-Term Ownership Sensible
Starting prices for the M340i are lower than the M3’s, and so are the estimated overall running costs. According to RepairPal, it will cost you, on average, $1,161 a year to maintain an M3. There are currently no maintenance prices on RepairPal for the M340i, but considering that it has a less powerful and slightly less stressed engine, we are relatively confident in suggesting that it will cost you less to upkeep.
The M340i’s less powerful engine also helps in terms of fuel efficiency. FuelEconomy.gov says that the new M340i can achieve 29 combined mpg (27 mpg in the city and 33 mpg on the highway). They also say it will cost you $2,400 a year for gas. On the other hand, the new M3 can achieve just 19 combined mpg (16 mpg in the city and 23 mpg on the highway), costing you $3,650 a year for gas.
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Why The BMW M340i Is The Performance Sedan To Buy This Year
When you compare the BMW M3 and the BMW M340i, it is clear that the new M3 is the far more aggressive beast and will likely still appeal to those of you who want peak BMW M power and track guts. It is also clear, though, that the M340i looks a lot less like a “soft M.” It doesn’t try to compete directly with the M3 in terms of power and what you expect from it, and that’s why it works; it’s designed to focus on real-world use without the price tag, extremes, and hardcore edges of its pure-M sibling.
“Even if you add every option available, the M340i is still roughly $9,000 cheaper than the base M3. That’s straight-line performance on par with an M3, plus all the luxuries you could imagine. The M3 could likely beat my car around a track, but I don’t live on a track, and neither do 99.9% of you. The BMW M340i xDrive may just be the car for all reasons, especially now that Mercedes-AMG has gone the turbocharged four-pot route. Like the Golf GTI, it’s all things to all men, but just in a more expensive and luxurious bracket.” – CarBuzz
It gets the blend of comfort, practicality, pricing, and power just right. It can effectively sprint like the base model M3; it still gets the driving dynamics right; it will be a lot easier to live with, and it still looks like a luxury BMW sports sedan should look. A recent CarBuzz review of the M340i sums it up nicely.
Sources: BMW, RepairPal, FuelEconomy.gov, CarBuzz, J.D. Power.