The BMW E46 M3 first appeared in 2001. The E46 sports a 3.2 litre engine, notable for developing over 100 bhp per litre (333 bhp in all). The car had an electronically limited top speed of 155 mph and 0-62 mph arrived in 4.8 seconds. De-limited the E46 M3 is rumoured to hit 186 mph.
On the options list was the SMG II Drivelogic six-speed transmission. The system featured an F1 derived paddle-shift gearbox. However, the system received a luke-warm reception from critics, although posing-power ensured that it remained a popular choice with consumers.
In mid-2003 the M3 CSL was released for a limited run of 1,400 examples. Output was increased to 360 bhp, weight was dramatically reduced, and semi-slick tyres were included. The roof was made of carbon fibre, as were the interior door panels, boot lid, and rear integrated spoiler. To further reduce weight a lighter exhaust was utilised, as was lighter glass, the removal of the radio, air conditioning, side air bags, and sat nav.
In 2005 BMW introduced the Club Sport (CS) package offering the steering rack and M-Track DSC from the CSL.