With the European market launch of the new X1 small SUV, BMW is now rushing the second-generation of its larger X3 SUV towards production.

Spied here testing on the streets of Germany, the video reveals that the new X3 gets a more sloping front hood and larger front air intakes, while the crossover’s profile is cleaner and resembles the crossover’s smaller brethren.

It also appears that the new X3’s dimensions have grown a bit allowing some breathing distance between itself and the X1.

Based on the next 3-Series platform architecture, the new X3 will come with all-wheel drive, though it is possible that the Bavarian automaker may also offer rear-wheel drive only variants of the compact SUV.

Depending on the market, engine options will include four- and six-cylinder diesel and gasoline units topping out with the 306HP 3.0-liter turbocharged inline-six petrol. A new hybrid version is also expected to be on offer.

The new X3 will be produced alongside the X5 and X6 models at BMW’s Spartanburg plant in South Carolina, with sales expected to start in 2011.

Video via: Bimmerpost