Evolution (1996 to 1999)

Introduced in 1995, the BMW M3 E36 Evolution represented the most significant mechanical upgrade of the E36 M3 range, headlined by the move from the original 3.0-litre engine to the more powerful 3.2-litre naturally aspirated inline-six. This update brought meaningful gains in power and torque, along with chassis and braking improvements, making the Evolution sharper and more capable while retaining the E36’s refined, usable character. Offered primarily in coupe form, with select sedan and convertible variants depending on market, the Evolution cemented the E36 M3’s reputation as a true dual-purpose performance car rather than a pure homologation special. Total E36 M3 production sits at approximately 71,242 cars worldwide, with Evolution (3.2-litre) models accounting for roughly half of that figure, making them more common than early 3.0-litre cars but still increasingly scarce. In the Australian market, the E36 M3 Evolution was officially sold and is generally preferred over earlier cars due to its improved performance and drivability, with values driven by manual transmission preference, originality, mileage, and condition, as clean 3.2-litre examples continue to thin out locally.