The diesel engine that powers the MINI ALL4 Racing was designed by BMW Motoren GmbH in Steyr, Austria, to be used in endurance races under the toughest conditions. The twin turbo engine with a capacity of 2993 cubic centimetres is based on a BMW production engine and generates over 300hp at 3250 revs per minute. This allows the MINI ALL4 Racing to hit a top speed of 178 kilometres per hour. The diameter of the air restrictor is 38 millimetres.
The engine is also equipped with a dry sump lubrication in order to limit the overall height and guarantee optimal lubrication under extreme conditions. The wiring was reduced to the bare minimum in order to further reduce the weight of the car.