On both new gasoline models of the BMW X5, sending the newfound power to the standard xDrive intelligent all-wheel drive system is BMW's new 8-speed automatic transmission with Steptronic control. The new 8-speed transmission is standard in the BMW X5 xDrive50i and X5 xDrive35i, and raises the industry standard for compactness, efficiency, and gear selection. The new transmission weighs no more than its 6-speed predecessor, yet offers closer ratios in the lower gears for improved acceleration and two additional "tall" gears for relaxed, efficient cruising. BMW's 8-speed automatic was introduced on the 5-Series Gran Turismo and 760Li Sedan in the fall of 2009.

Using the console-mounted e-shifter, the BMW X5 driver chooses from three shifting programs: Drive, Drive Sport, and Manual. In Manual mode, the driver selects from the eight forward gear ratios via the + / - action of the shifter (push forward to downshift; pull back to upshift). At any speed, Neutral is easily selected via a forward push of the selector from Drive and, when at a standstill, Park is selected by depressing the "P" button atop the shifter, or by pushing the Engine Start-Stop button (doing so will also stop the engine).

BMW's Brake Energy Regeneration system is also fitted to the gasoline X5 models. It incorporates a special deep-cycle Glass Mat battery with programmed alternator disengagement so that, most of the time, the vehicle's battery is only charged while the vehicle is coasting or braking. Over time, the Brake Energy Regeneration system can save 1-2% on fuel consumption. Brake Energy Regeneration is another feature in BMW's EfficientDynamics portfolio of small features and adjustments which have a cumulative effect on the efficiency-performance balance of each BMW vehicle.