With every manufacturer cashing in on the Sport Utility Vehicle (SUV) craze, BMW is definitely late to market. However, what it’s brought is a new, muscular-looking all-wheel-drive model it’s dubbed a “sports activity vehicle.”

Late or not, the new, almost car-like X5 is destined to sell big — even up against other formidable competition such as the Lexus RX 300, Mercedes-Benz M-Class, and the new Acura MDX.

All are among the growing number of “hybrids” that integrate features of cars and SUVs in a car-like multi-purpose vehicle. The trend will continue as people tire of the big, “truckish” SUVs with heights that make them hard to get in and out of, usually ride pretty rough and handle like, well, a truck.

The X5 sports an 111-inch-wheelbase and is primarily designed for on-road use. It’s also a nice size for parking and fits easily into a garage.

The X5 lacks the low-range gear set a genuine SUV has, but a Hill Descent Control stabilizes vehicle speed on steep declines during off-road driving. The X5 also does well on slippery roads with plenty of vehicle control assists — including an anti-lock brake system and something called Dynamic Stability Control that functions as a type of electronic traction control.

Its all-independent suspension is similar to that in BMW’s 5 and 7-Series models and the unibody chassis has a clean-sheet design. The nearly 50/50 weight distribution makes the X5 feel much like a BMW sports sedan, with sharp, communicative steering and very confident handling.

There’s an optional $2,470 Sport Package available that contains a sport suspension that gives the X5 an overly stiff ride and tends to jerk it sharply from side to side on even moderately bad roads. Save your money unless you plan on driving off-road more than on the blacktop.

The X5, which stickers at $49,400, has the sophisticated 4.4-liter 282-horse V8 from the 5-Series sedan under the hood, It’s quiet, smooth and deceptively quick, moving the X5 to 60 mph in 7.5 seconds. The 32-valve DOHC V8 is married to an outstanding 5-speed automatic that can be shifted like a clutchless manual. However, weighing in at a hefty 4,828 pounds, you may not want to push it nearly as hard as you would a lower, lighter BMW sedan.

Interiorwise, the X5’s wood-and-leather interior has the typical understated luxury found in most high-performance German sedans. The no-nonsense instrumentation is easily read and the smooth controls are right where you expect them to be. An electric tilt/telescopic steering wheel is also part of the package.

The X5 comfortably accommodates four tall adults and an $850 Activity Package contains heated front seats. You can also get a heated steering wheel for an extra $150. Other major options include a power glass sunroof, CD player and a $1,990 navigation system. Rear side-impact airbags are also a $385 option.

There’s modest cargo room with the 60/40 split-fold rear seats in their normal position. Easier loading can be facilitated using a $380 retractable load floor, that features a floor panel that rolls out on ball-bearing rails up to 24 inches, and can handle up to 330 pounds.

Whines: Fuel economy is not as good as most other vehicles in this class — an estimated 13 mpg in the city and 17 on the highway. But you don’t buy an SUV for fuel economy, so get over it. With all its power, weight and performance, it goes without saying that the X5 will suck some gas.

Kudos: The BMW X5 is ruggedly built, well-equipped and quite comfortable. Except for the Mercedes ML55 — which stickers at about $20,000 more — the X5 offers above seriously average performance for this class.

Bottom Line: Those who want a fun-to-drive BMW sedan but need more utility will find the X5 to fit the bill as a great compromise — one that compromises nothing in comfort, style, performance or utility.