Designing a compact 4x4 car that's good on the road, comfortable and yet also possesses some off road ability is no easy feat. But BMW has come close with the X3 - the smaller brother to the muscular X5. It uses BMWs xDrive four wheel drive system which ensures excellent traction both off-road and on it, while decent body control and good steering feel means the X3 corners very well for an off roader. It's very practical with a large boot and spacious cabin. Built for inner town commuting of passengers, it also holds its ground in the aspect of off-road handling, as it provides a smooth drive always.