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Lots of regular non enthusiasts would probably mistake a X3 M40i for a real M car, but every owner knows they don't own a real M car.
This is funny because my friend just recently purchased a X3 M40i and believe me he had no idea what the M stands for. He did not know about the M heritage. All he knew was that he bought a BMW X3. He thought that the car was just named an X3 M40i, hysterical. So yeah you are right he now knows what M stands for (I explained) and knows that his X3 M40i is not an M car.
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