It looks like a 3 Series Touring, but this is a disguised prototype of the next BMW X3, spotted testing at the Nurburgring.

The second generation of the SUV is expected on sale in late 2010 and should be BMW’s most driver-focused 4x4 yet.

Active steering, active roll compensation and an active rear diff should all be available.

BMW has a sportier SUV – the X1 – in development, so the X3 will be a more upright and traditional 4x4.

The current model sells around 100,000 a year, but BMW wants the new-generation X3 to shift 160,000 per annum.

The X3 should go on sale here in 2011, with prices starting at £30,000.