In 1996, the M60B30 was superseded by the new junior V8 BMW M62B35 model. This engine was based on the M62B44 engine, which had its cylinder diameter reduced to 84 mm and a short-stroke crankshaft installed in its block.

Only since 1998 have the sleeves changed from nikasil to alusil. The upgraded motor had new pistons compared to its predecessor, the M60B30, but the ceramic-metal connecting rods stayed the same.
The camshafts and cylinder heads have been slightly altered; the new ones have the following features: rise 9/9, phase 236/228. The inlet is 32 mm in diameter, the outlet is 28.5 mm, the plates and springs are lightened, and the valves are identical to those on the M60.
Single-row timing chain, magnesium cylinder head covers, and an average service life of 150–200 thousand kilometers. A programmable thermostat has been added, the intake manifold has been upgraded, new throttle valves have been installed, and the ignition coils resemble those found on the M52 series. Engine management system Bosch DME M5.2.
The motor underwent some modernization in 1998 and was renamed M62TUB35. Notable innovations include the Bosch DME M7.2 engine management system, a new intake manifold with narrow channels, an electronic throttle, and a variable valve timing system on the VANOS intake shaft.
Other modifications of M62: M62B44, M62B46, M62B48.
Specifications
| Production years | 1996-2003 |
| Displacement, cc | 3498 |
| Fuel system | injector |
| Power output, hp | 235 /5800 rpm 245 /5800 rpm (TU) |
| Torque output, Nm | 320 /3300 rpm 345 /3800 rpm (TU) |
| Cylinder block | aluminum V8 |
| Block head | aluminum 32v |
| Cylinder bore, mm | 84 |
| Piston stroke, mm | 78.9 |
| Compression ratio | 10.0 |
| Features | no |
| Hydraulic lifters | yes |
| Timing drive | chain |
| Phase regulator | no VANOS (TU) |
| Turbocharging | no |
| Recommended engine oil | 5W-30 |
| Engine oil capacity, liter | 7.5 |
| Fuel type | petrol |
| Euro standards | EURO 2/3 |
| Fuel consumption, L/100 km — city — highway — combined |
17.0 9.1 12.0 |
| Engine lifespan, km | ~320 000 |
Disadvantages of the M62B35 engine
Additionally, these engines are protected from sulfur in the fuel by a Nikasil coating;
VANOS provides the same modest resource of 150,000 km as a single-row timing chain;
Air leaks in the intake manifold are frequently the cause of floating engine speeds;
Water-cooled generators are unreliable and difficult to repair; they also have coolant and oil leaks from beneath the valve cover.
