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I don't think it's mislabeled as an SUV. Because of a bad back injury, I cannot sit comfortably in a regular sedan/coupe/hatchback. However, the X1 has a higher seating position like an SUV and I can sit comfortably in it. In a 2/3/4/5 series BMW, you sit with your legs almost straight out in front of you. In the X1 you sit more like in a chair with your legs lower than your body, and that makes all the difference in the world.
Ground clearance in the X1 is 7 inches which is similar to other small SUVs like the RAV4 & CR-V. Most regular coupes/hatchbacks/sedans have around 5 inches ground clearance.
Yes, it's not as tall as an X3 or X5, but it's certainly splits the difference and is over 60" in height. Tell me a hatchback that is taller than 60"??
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