2003 facelift
In 2000, development on mid-cycle updates began scheduled for 2003. By late 2001, a radical design update was chosen favoring the new brand design theme. In 2002, following discontent towards the 2001 E65 design, a more conservative appearance was instead chosen and frozen for 2003 production.[15]
In July 2003, the facelifted X5 was presented for the 2004 model year at the IAA 2003 in September, with new headlights, a few new exterior colors, a new four-wheel drive system and upgraded engines. Production started at BMW's Spartanburg plant on 26 September.[13][16] The grilles were enlarged, as well as their actual slats being modified in a 'flame surfaced' style. In keeping with the E39 facelift of 2001, the 2004 X5's headlights got corona rings around all four headlamp projectors. The tail-lights also received a facelift similar to the BMW E39, and the exterior glass went from a "dotted" pattern to a cleaner "line" pattern. BMW invented a new four-wheel drive system dubbed xDrive shared both in the X5 and X3 in 2004. Instead of using the previous X5 system which consisted of power being split 38:62 (front:rear) and DSC to brake wheels without losing traction, xDrive could vary power to the front or rear axles in milliseconds, transferring up to 100% of engine power to either axle, thus allowing the vehicle to regain traction quickly.
The X5 got the new 4.4i engine which debuted in the 2002 7 Series; power output rose from 290-315 hp. Also from April onwards, a new X5 4.8is was offered (see below), producing 355 hp. Sales began in September 2003.
Several new extras were added to the 2004 X5 such as:
Originally announced in the end of 2003 along with the rest of the X5 facelift, the X5 4.8is first started shipping in April 2004. It had a new larger 4.8 L engine (which replaced the 4.6 L engine), and was also later used in the 2005 750i/Li. It also included a slightly modified bodykit (parts of the bottom bumper became painted the body color), 20" wheels, and along with the 4.6is, were the only X5's ever to have a large chrome-tipped exhaust which hid the quad pipes.
- Soft-boot close feature (the top part of the trunk latches itself closed)
- Trailer Stability Program (making it an ideal tow vehicle)
- Adaptive Headlights (available only with xenon HID headlamps; these can swivel with the direction of travel of the car (if light switch is in "Automatic" or "Auto"). Bi-Xenon headlights for both low and high beam replaced the low beam HID headlights)
