The BMW M340d xDrive Sedan and M340d xDrive Touring models received a three-liter six-cylinder turbocharged diesel engine producing 340 horsepower and 750 Nm of torque. The engine features an aluminum block and cylinder heads, as well as an M Sport sports exhaust system.

The powertrain operates on the "mild hybrid" principle: it is assisted by a starter-generator running on a 48-volt network and adding 11 horsepower. The engine is paired with an eight-speed automatic transmission and all-wheel drive. The sedan accelerates to 100 km/h in 4.6 seconds, while the wagon takes 0.2 seconds longer.

Standard equipment includes an M sports differential on the rear axle, M sports suspension, and front brakes with four-piston calipers and 348 mm diameter discs.