BMW is reportedly developing a rugged, all-terrain SUV aimed squarely at competing with the iconic Mercedes-Benz G-Class. According to recent reports, this forthcoming model, internally dubbed G74, will be based on the next-generation X5 platform and is set to begin production in the second half of 2029 at BMW’s South Carolina factory. The G74 would serve as an indirect successor to the flagship XM, pivoting BMW’s halo SUV focus from performance on tarmac to serious off-road capability.
Unlike earlier crossovers designed primarily for sporty road manners, the new G74 is expected to feature a markedly boxier, more rugged design and incorporate genuine off-road enhancements. Building on the precedent set by the recent xOffroad package for the X5 Silver Anniversary Edition, which added a rear locking differential, unique off-road drive modes, underbody protection, and all-terrain tires, BMW’s new off-roader will push the envelope further to enable world-class all-terrain exploration.
Powertrain Expectations
The powertrain for the G74 is likely to be a traditional internal combustion gasoline engine, in line with market data showing stronger demand for gas-powered luxury off-roaders compared to their electric counterparts. Although BMW’s future X5 lineup offers both electric and gas options, the G74 is expected to focus on internal combustion, with the possibility of a hybrid powertrain under consideration to balance performance and efficiency.
Production
Production of the current BMW XM, the brand’s high-powered, M-developed SUV, may end by 2028, opening the assembly line for the G74 to take over as the new halo SUV in BMW’s roster. BMW’s spokesperson has declined to comment on speculation about future products, but industry expectations and anonymous insiders point to the G74 becoming a flagship for BMW’s SUV division, targeting an audience seeking luxury and off-road prowess.
Final Word

If launched as reported, the BMW G74 would mark a significant expansion of BMW’s capabilities in the luxury off-road segment, bringing a formidable new competitor to a landscape long dominated by the Mercedes-Benz G-Class. Prospective buyers can anticipate a vehicle with distinctive styling, robust off-road hardware, and BMW’s trademark engineering and refinement when it arrives near the end of this decade.
