BMW Canada just showed off a new, hotter X2. The X2 M35i gets more power and the first application of an M Sport limited slip differential on the front axle.

The X2 offers a sportier take on the compact crossover, with its sleeker styling and coupe-like roofline. Now BMW is adding some extra grunt under the hood to let the power better match the looks.

It starts with the 2.0L turbocharged four-cylinder. It's the first M Performance four-cylinder and the company's most powerful four. That means 302 hp and 332 lb-ft of torque that are delivered from just 1,750 to 4,500 rpm. That's 74 hp and 74 lb-ft better than the X2 xDrive28i. 

The revisions to the engine are extensive. A reinforced crankshaft has larger main bearings and the pistons have a slightly lower compression ratio (9.5 vs 10.2:1) to allow for more boost from the larger turbo. The intake has been modified for higher flow, and the cooling is likewise uprated to handle the extra power.

BMW's xDrive all-wheel drive is standard, along with an eight-speed automatic that has M35i-specific ratios, more cooling, and launch control. The M Sport front differential uses a Torsen limited-slip unit with up to 39 percent lockup to help put power to the front wheels.

The suspension has been retuned to suit the M badge. Stiffer springs and dampers along with a 10 mm lower ride height should improve dynamics. Adaptive dampers are available, with two different modes. The M35i offers upgraded brakes as well as a quicker rate steering ratio that BMW says delivers a more precise and direct feel.

Inside, the X2 M35i offers an M Sport wheel with paddles and sports seats. M Sport seats with integrated headrests are available and offer big bolsters with more support in corners. Outside, it comes with Cerium Grey trim elements, like the grille and mirror caps, and a new body kit. The headlights are full LED, and there is a twin-pipe M Sport exhaust.

The X2 M35i is set to arrive in Canada in February, with pricing closer to that date.