Two problems related to air bag not deploy have been reported for the 2012 BMW X3. The most recently reported issues are listed below.
I am receiving a "passenger restraint malfunction" warning. This means that if I have any passengers in my car and an accident occur the air bag will not deploy on that side. This is a very unsafe situation that should be covered by BMW 10 year warranty.
Takata recall: I recently bought my used car from a Nissan dealership. Within the first month of operation, I noticed that a "passenger restraint system malfunction" would appear in the center console. It has not gone away since then. It will only display this message in the beginning when I turn my car on, while it's stationary. After that it just display's the airbag symbol in the bottom left corner of the odometer. This has me a little concerned since I do not want to be driving with anyone else if that means the passenger airbag will not deploy in case of an event. When I did my research online, I found out that several of other BMW owner where complaining about the same issue.