Starting in October 1991, the engine of the BMW 525tds (E34) was installed in the Touring model as well as in the sedan. The newly developed engine (M51B25) was provided with a turbocharger in this model and - in a first for BMW - with a charge-air cooler. Together with the familiar indirect injection (swirl-chamber injection) and digital diesel electronics (Bosch DDE 2.1), this power plant provided exceptionally good handling in the diesel range. The sporty family and touring car was particularly popular with customers, offering the practical large tailgate. A total of 42,000 examples were produced by June 1996 when the production run came to an end, and this made it the most popular Touring diesel model in the series.