BMW Reportedly Developing Rugged Flagship SUV To Challenge Mercedes G-Class

BMW is developing a rugged flagship SUV to rival the Mercedes G-Class

BMW is said to be working on a new top-tier SUV aimed at competing directly with established luxury off-roaders like the Mercedes-Benz G-Class, Lexus LX and Range Rover. The model, internally referred to as the G74, is expected to debut in the second half of 2029 and could replace the XM as BMW’s flagship offering.

Positioned for Off-Road Capability

The G74 will reportedly be built on the next-generation X5’s unibody platform rather than the X7’s, a move that may enhance its agility and performance on challenging terrain. Industry speculation suggests that the SUV will retain internal combustion power, aligning with market trends that have seen limited demand for electric luxury off-roaders in this segment.

BMW’s recent moves, such as introducing the X5 Silver Anniversary Edition with enhanced off-road capabilities, indicate growing interest in vehicles designed for adventure. The G74 is expected to feature rugged styling, upgraded suspension systems and advanced off-road software to boost its capability in demanding environments.

Potential Successor to the XM

The arrival of the G74 may signal the end of the XM, BMW’s high-performance SUV launched as the first standalone M model since the M1 sports car. Forecasts suggest XM production could wrap up in late 2028, just ahead of the G74’s planned introduction. Unlike the road-focused XM, the G74 would be geared toward rugged utility, appealing to buyers who prioritise capability as well as luxury.

An M-badged variant of the G74 is also possible, offering performance levels to rival the Mercedes-AMG G63 while maintaining its off-road credentials. However, competing for G-Class buyers will be a challenge, as the model enjoys strong brand loyalty in key markets like the US.

If realised, the G74 could mark a significant shift in BMW’s SUV strategy, filling a long-standing gap in its portfolio and broadening its appeal in the high-end luxury SUV segment.