BMW introduced the 540d as part of the seventh-generation 5 Series in 2017, expanding the model line with a six-cylinder diesel aimed at buyers who wanted strong long-distance performance without moving into the full M Performance tier. It arrived first as the 540d xDrive Sedan, with a Touring body added soon after, both positioned above the more mainstream diesel 5 Series variants and below the gasoline 540i and M550i. The nameplate was always tied to the 5 Series rather than standing alone as a separate model line.
In BMW’s modern naming system, the 540d identifies a 5 Series model with a diesel engine, while xDrive denotes all-wheel drive. That formula has remained central to the model’s identity. The 540d quickly became known as one of the more distinctive upper-end diesel offerings in BMW’s lineup, combining the long-range efficiency traditionally associated with BMW diesels with the smoother, more effortless character of a straight-six and the added traction of xDrive.
The model stayed in production through the life of the G30-generation 5 Series and continued into the next generation. BMW refreshed the 540d for the latest 5 Series era, where it remains part of the range as the 540d xDrive Sedan and 540d xDrive Touring, now updated with mild-hybrid technology. Across its history, the 540d has been one of BMW’s clearest expressions of the brand’s executive-diesel formula: discreet, fast in real-world driving, and aimed at drivers who value refinement and distance capability as much as outright performance.