Quick Highlights:
- All-new rugged BMW SUV, internally codenamed G74, targets Mercedes-Benz G-Class dominance.
- Based on the next-generation X5 platform, launching in 2029 from BMW’s South Carolina plant.
- Set to replace the flagship XM, with a shift from tarmac performance to hardcore off-road focus.
- Expected to stick with internal combustion, with a hybrid option possible — no full EV planned.
- Boxier, more utilitarian styling with upgraded off-road hardware over current BMW offerings.
The Mercedes G-Wagon is the off-road beast everyone wants in their driveway — but if you’re looking for something that delivers similar swagger with Bavarian engineering, there are already a few options in the market (here’s a deep dive on G-Wagon alternatives). Like me, many enthusiasts have been waiting for a BMW to step into this arena. Soon, though, BMW wants to give you a brand-new reason to think twice before writing a check to Mercedes-Benz.
According to an Automotive News report citing BMW insiders, the Munich automaker is preparing an entirely new all-terrain flagship SUV to go head-to-head with the legendary G-Class. Slated for production in the second half of 2029 at BMW’s Spartanburg, South Carolina plant, the project carries the internal code name G74 and will be built on a heavily adapted version of the next-gen X5 platform.
From Autobahn King to Trail Conqueror
BMW is renowned for its high-speed autobahn cars and Nürburgring-tuned M models, yet the G74 represents a clear shift toward serious off-road capability. Where the XM SUV leaned into brute horsepower and sporty handling, the G74 will channel its engineering muscle into serious off-road ability — think deep ruts, rock gardens, and dunes rather than just switchback curves.
This won’t be a ladder-frame purist like the G-Class, but expect BMW to reinforce its unibody chassis for punishing conditions, integrating rear locking differentials, multiple off-road drive modes, underbody protection, and all-terrain tires straight from the factory. In fact, the G74 will go beyond what’s currently possible in BMW’s xOffroad package, which debuted earlier this year on the X5 Silver Anniversary Edition.
Automotive market strategist Lena Hoffman told us:
“If BMW nails the G74, they won’t just poach sales from Mercedes — they could redefine what a luxury off-roader looks like for the next decade.”
XM Out, G74 In
The G74 is expected to replace the XM in BMW’s portfolio by 2028. The XM has served as the SUV halo model for BMW’s M division, but its focus on road-biased performance has left a gap for a truly rugged flagship.
Historically, BMW has flirted with off-road capability — the original X5 in 1999 was marketed as a “Sport Activity Vehicle” to bridge the gap between SUVs and performance sedans. But the company never went all-in on a hardcore 4×4 to rival icons like the G-Wagon or Defender. The G74 signals a change in that strategy, reflecting the segment’s soaring profitability and demand in markets such as the U.S., the Middle East, and China.
Powertrain: Gas Over Electric (For Now)
While the next-gen X5 will be available with both electric and internal combustion powertrains, industry chatter suggests the G74 will launch primarily as a gas-powered model, possibly with a mild-hybrid assist.
The decision mirrors market trends — the gas-powered Mercedes G-Class continues to outsell its electric EQG counterpart by a wide margin. Buyers in this segment want range, sound, and visceral feel, all of which favor ICE power. A hybrid could appear later, giving BMW flexibility in regions with tightening emissions regulations.
What Might It Look Like?
Although official design sketches are under wraps, based on BMW’s recent rugged concept cues and the functional demands of the luxury off-road segment, the G74 is likely to adopt boxier proportions, squared-off wheel arches, integrated recovery points, and aggressive approach and departure angles. Expect muscular body cladding, optional roof racks, and color palettes inspired by natural landscapes — think desert sands, alpine greens, and deep ocean blues.
Inside, the G74 will likely blend BMW’s tech-forward cabin design with ruggedized materials: grippy rubberized controls, weather-resistant upholstery, and possibly a modular cargo area for overlanding gear.
The Competitive Stakes
BMW isn’t just chasing Mercedes for bragging rights. The luxury off-road SUV segment has exploded in profitability, and BMW’s absence has left money on the table. With the G74, Munich is signaling it’s ready to go toe-to-toe in a category once dominated by Mercedes, Land Rover, and Lexus.
A side-by-side look at the market shows where the G74 could land:
| Model | Platform | Powertrain Options | Starting Price (Est.) | USP / Strength |
| BMW G74 (preview) | Unibody (X5-based) | Gas, Hybrid (possible) | $150K–$180K (est.) | Modern luxury meets hardcore off-road kit |
| Mercedes G-Class | Ladder-frame | Gas ($148,250 G 550), Electric G 580 ($162,650), AMG V8 ($179K+) | Iconic design, proven durability & performance | |
| Land Rover Defender | Unibody (aluminum) | Gas, Diesel, Hybrid | $58,750 base → up to $169,650 top trims | Configurable, luxury off-road with heritage |
| Lexus GX | Ladder-frame | Gas, soon Hybrid | $64,735 base (GX 550) | Reliability + comfort in a luxury-grade 4×4 |
Who BMW Is Targeting
This isn’t aimed at budget-conscious adventurers. BMW is going after high-net-worth buyers who split their time between urban luxury and weekend escapades — think valet-parking outside a Beverly Hills hotel on Friday, clawing up Moab slickrock by Sunday. It’s also likely to attract existing BMW owners who’ve been tempted by the G-Wagon’s status factor but prefer the brand’s driving dynamics and tech ecosystem.
Sources: Automotive News, BMW Blog, Paultan, CarExpert – all reporting on the G74’s development and market context.
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