The fourth generation BMW M3 was announced on the 2007 Geneva Auto Show (Switzerland, March 6th-18th 2007) with the BMW M3 concept. As was the case with the E46 M3 Concept and E60 M5 Concept, the M3 Concept hid almost nothing of the looks of the production version, that had its world premiere on the 2007 Frankfurt Auto Show IAA (Germany, September 13th to 23rd).

Just as the previous M3 generations all introduced a completely new engine, the fourth generation M3 did the same: the BMW S65 engine was introduced. This S65B40 is a naturally aspirated, high revving 4-litre V8 (based on the S85B50 5-litre V10 that powers the E60/E61 M5 and the E63/E64 M6 to date) delivers 420 DIN-hp (309 kW, 414 SAE-hp) at 8,300 rpm and peak torque is 400 N·m (295 ft·lbf) at 3,900 rpm, which represents a power increase of 22% over the E46 M3. The engine weighs 15 kg (33 lb) less than the outgoing six cylinder for a total weight of 202 kg (445 lb). A six-speed manual transmission is standard. As from April 2008, BMW offers a new double-clutch gearbox, called M-DKG (Doppel-Kupplungs-Getriebe) or M-DCT (Double Clutch Transmission) as an option, which reduces shift pauses to less than a tenth of a second and shortens the car's 0-100 kp/h sprint time by 0.2 seconds vs. the SMG. It features both automatic and manual modes in a manner similar to the SMG gearboxes in the E36 and E46. The E92 M3 coupe inherits the carbon-fiber roof from the E46 CSL as part of the weight-saving program.

The new M3 is once again available as a 4-door sedan, based on the E90 3-Series, but unlike the regular models, this car shares the coupe's front end, including headlights. However, it doesn't get the 2-door's carbon-fiber roof. The E93 hardtop convertible version joins the lineup shortly after the E92's launch, while an E91 wagon is due in the first quarter of 2009. A CSL lightweight version is heavily debated and longed for amongst car enthusiasts, and cars suspected to be the new M3 CSL have already been spotted at the famous Nordschleife (North Loop) of the German Nürburgring.

E90 BMW M3 sedan (US)

2009 BMW M3 convertible (US)

BMW Motorsport announced in February 2008 that Rahal Letterman Racing will campaign two factory-backed E92 M3s in the American Le Mans Series in 2009, following a two-year absence by the brand.

Based on the 1986 model year E30 3-Series, the first M3 (Motorsports 3-series) was introduced with a 2.3 L I4 S14B23 engine (or S14 in shorthand). The engine design was based on various BMW genealogy; basic block layout from the M10 4 cylinder (found in the 2002 and 320 series) overbored and reinforced to similar specifications of the BMW M88 inline-6. The valve train and head architecture from BMWs M1 and later M6 inline-6 cylinder was adopted for aggressive breathing, resulting in outstanding performance for the day. The most notable characteristic of the E30 M3 (relative to later M3 iterations) is its racing pedigree. It was campaigned by BMW as well as other racing teams including Prodrive and AC Schnitzer competing in many forms of racing including but not limited to Rally, DTM, Australian touring car and other series.

One of the main reasons for production of the road car was to homologate the M3 for Group A Touring Car racing. One of the reasons often cited for its creation was that it was to compete with the "2.3-16V"-model of the Mercedes-Benz W201 190E which was introduced in 1983, although this was only speculative. When the E30 M3 was in its final years of top level competition, the 2.5 liter S14 engine in full race trim was capable of 340 hp (250 kW) plus, naturally aspirated.