in my car there is a spot for it its on the middle of the hood when u open it, mine has a small rectangular cut to it but no light, i think the 325's have it mine is a 318 so i dont know, but in the manual it also says its there cuz it has the bulb number listed in the manual.
If you do a search this topic was discussed... 2ish years ago. I called my knoweldgeable parts guy and got him to fax me a copy of the parts diagram and there is indeed a part number for a light, if you look at your hood insulation you will see a perferated place for the light. However, my parts guy said he's never seen one or heard of an E36 actually having one in it... and he's been working for BMW Dealership in the parts department for a long long.... long long... time. But do a search, I believe Elpresidente was the one that actually uploaded and posted the fax with the diagram with parts numbers.
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