Jil McIntosh: When we compare vehicles here at Driving.ca, they aren’t always exactly head-to-head. Every now and again we go farther afield, and this is the case here. Our two test vehicles are relatively close in their as-tested prices and that, plus their size, is mostly what they have in common.

So, in one corner we have the BMW X2 M35i, which starts at $60,400 and on ours is optioned to $71,800; and in the other corner, the Lexus NX 350h, beginning at $56,715 and optioned to $70,108. We’re essentially tackling this: If you have $70,000-ish to spend, which one does the better job of being what it’s supposed to be? Is it the BMW at being a hot-hatch, or the Lexus at being a gas-electric hybrid? Peter, how about we start with their specs?

Peter Bleakney: The all-wheel drive Lexus NX 350h runs with a 189-hp 2.5L gas engine assisted by three electric motors – two up front and one driving the rear wheels. One of the front motors is hooked to a planetary gearset that mimics a continuously variable automatic transmission. Combined system output is 239 horsepower, but Lexus doesn’t publish a torque figure.

The BMW X2 M35i is also all-wheel drive and gets its scoot from a 2.0-L turbocharged four-cylinder making a robust 312 horsepower and 295 lb-ft of torque from 2,000-4,500 rpm. It comes with a seven-speed dual-clutch transmission, mechanical limited slip differential, adaptive damping, and four-piston brakes up front with M-compound pads. There are paddle shifters for those times when you want to play with the gears, and briefly holding the left paddle triggers a 10-second boost function that puts drivetrain and chassis parameters in their sportiest modes but doesn’t unleash any more horses from the corral.

Looking at these specs, the two SUVs obviously have different missions, and that is reflected in their fuel consumption. The X2 M35i is rated at 9.3 L/100 km city, 7.7 highway, and 8.6 combined (premium grade fuel required) whereas the Lexus hybrid sips regular-grade gas at a sanctimonious 5.7 L/100 city, 6.4 highway, and 6.0 combined.

But before we put these crossovers through their paces, Jil, let’s look at their styling. What thinkest thou? Do they convincingly advertise what’s in the tin?

JM: I think they do speak to their respective purposes. They’re almost the same length, but the NX is a bit taller and looks more SUV-ish, while the X2 has more of a car-like profile. Both grilles are polarizing, so pick your poison. At the butt end, the NX is very matter-of-fact sport-utility, ready to take on your groceries or your luggage, while the X2 is chunky and angular, with catch-me-if-you-can attitude.

2025 BMW X2 M35i and 2025 Lexus NX 350hPhoto by Jil McIntosh

Inside is the same. Both are dominated by large screens, but the X2’s includes the instrument cluster, and has far more functions set behind the glass; while the NX sets its climate controls apart and with a couple of dials, so it’s a little less distracting when you’re making adjustments. The Lexus’ cruise control and some other functions are handled via touchpads on the steering wheel, and you look at the icons that appear in the head-up display that indicate where to touch the pad to activate them. If you don’t like using a head-up, you’re out of luck. As for cabin styling, the BMW’s extensive use of metallic trim looks more performance-oriented than the NX, along with its interesting split console, where the upper portion is seemingly cantilevered in space (there’s a brace hidden under it) with a storage area below.

I’m more into everyday commuters, so I’ll tackle the NX. It’s a self-charging hybrid – you don’t plug it in – and it switches automatically between gasoline, electricity, or a combination, depending on driving conditions. It does that very well, but when the engine kicks in, it has a harsh, rough growl to it. That might be okay in a lower-priced mainstream model, but doesn’t really fit the profile of a 70-grand Lexus. Otherwise, the NX pretty much ticks the boxes for what it’s meant to be. The steering is responsive if lacking in feedback; it handles corners competently; and the ride is smooth and comfortable. It’s not vague or floaty, but it’s not as tightly buttoned-down as the X2 is. For that, you’re our go-fast bad boy, Peter, so what say you?

PB – Well, Jil, hopping into the X2 M35i for me was a very pleasant experience because (a) this cabin’s coral red and black perforated leather looks fab, (b) the M Sport Seats (part of the $2,500 M Sport Pro Package) hug me in all the right places, and (c) I didn’t have to look at the X2’s exterior anymore. Okay, that’s a bit mean, but this whole contentious, ungainly BMW styling slant is wearing a bit thin for me. ‘Nuff said.

Get behind the thick-rimmed steering wheel, and this hot-rod X2 is a different story. From the driving position to the way it interacts with the road, the term “hunkered down” leaps to the forefront. The BMW telegraphs a mechanical eagerness, instantly engaging the driver with its accurate steering and quick moves. The M35i dives into corners like a fox on a vole, but there is a downside – the ride is firm. Select Sport or Sport+ and it gets stiffer. The X2 M35i more suited to smooth, sweeping roads than the acned tarmac we have here in the Greater Toronto Area.

It’s quick too, although some turbo lag means the power delivery isn’t particularly linear. Keep your foot in it and this hatchback/crossover goes on a legitimate tear, its rush to the redline underscored by a volley of woof and braps from the exhaust (some piped in through the sound system) that add to the drama and anger the more mature (my wife).

Speaking of mature, Jil, when I was flinging the BMW willy-nilly around our icy photo-shoot, I’m sure you were thinking, “What a juvenile eejit.” Au contraire. I was exploring the balance of the car with stability control off to ascertain if there was any power oversteer to be had from the AWD system. None to speak of, but it does love a nice neutral slide. As does this eejit.

2025 BMW X2 M35i
2025 BMW X2 M35iPhoto by Peter Bleakney

Apart from the firm ride, the X2 M35i is a fine daily driver. The interior is plenty roomy for four, and its interesting design and excellent build quality give this small BMW an upscale, expensive feel. Front and centre is a curved screen housing a 10.7-inch instrument display and a 10.25-inch touchscreen interface. This is BMW’s latest iDrive 9 system complete with “Hey BMW” voice control that does its best to cater to your needs. The system is quick, with killer graphics, but gone are the hard buttons, dials and rotary iDrive controller that we loved about BMW. If you need to adjust seat heat, for instance, call up the climate screen and start poking away at the screen.

I found the Lexus interface much more user friendly with its larger central screen and generous lower portion dedicated to HVAC, where the touch points were larger and well laid out.

So Jil, what do we do with these two luxury compact crossovers that, while having almost identical as-tested prices are vastly different when it comes to their stated missions? Can we pick a winner?

JM: I did suspect you were indeed “exploring the balance of the car” rather than being a “juvenile eejit,” at least until you yelled, “Yee-HAW!” out the window. And yes, they are so very different, and I think we have to concentrate on which one better defines its place in its segment.

The X2 M350i plays very well to its strengths. It’s zippy fast, despite that moment of lag, and that steering is razor-sharp and it corners flat and confident. Those seats hug indeed, and that interior has such a premium look and feel to it. I found its everything-in-the-screen controls annoying to operate, and it’s a hike to get over that tall sill and into those set-far-from-the-door seats when you’re my height. But overall, if I’m spending this kind of money, the X2 feels like it lives up to it.

I like the NX 350h for its well-done hybrid system, its better fuel economy, and its vastly simpler controls. But there’s a fair bit of plain plastic inside, and that coarse, noisy engine doesn’t sound remotely premium. Perhaps I’m nitpicking here, but between those two issues, I’d likely consider getting a Toyota RAV4, where I’d expect more noise and plastic than in a Lexus, and keep that $22,600 difference in my pocket. For me, the X2 is a better hot hatch than the NX is a high-end hybrid. What say you?

PB: I’m with you on this one, Jil. As much as I appreciated the Lexus NX 350h’s fuel economy and more user-friendly interface, its groaning drivetrain and somewhat vague dynamics took off some of the sheen. Don’t get me wrong, the NX is an excellent vehicle and you’ll never lose when betting on Lexus’ legendary reliability and quality. But for me the BMW X2 M35i always felt on point, providing a driving experience that blended legit pace and handling with terrific seats, an uber stylish cabin, and yes, impressive fuel economy for a non-hybrid. Gosh, maybe I could even grow to not squint when looking at it.

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