BMW plans to expand its lineup with a rugged utility model to challenge the iconic Mercedes-Benz G-Class. Production of the rock crawler is scheduled for the second half of 2029 at BMW’s plant in Greer, South Carolina, US, two people with knowledge of the plan told Automotive News. A BMW spokesperson declined to comment on the automaker’s future product plans.
The new off-roader, codenamed G74, is expected to ride on a variation of BMW’s X5 crossover platform, said one of the people, who asked Automotive News not to be identified when discussing the confidential plan.
The adventure-oriented SUV would be BMW’s first new nameplate since the XM plug-in hybrid crossover launched in early 2023. According to AutoForecast Solutions, BMW plans to drop the XM when production of the current generation ends in November 2028.
A halo SUV
Similar to the XM, BMW’s upcoming SUV is less about driving market share than capturing consumer mind share. For the Bavarian automaker, a flagship off-road SUV would open up a lucrative portion of the market cornered by Mercedes and Land Rover, according to Automotive News.
According to Edmunds, the Mercedes G-Class’s average transaction price in the US of $208,755 ranks second among mainstream luxury models, behind only the Porsche 911. Persuading customers of a G-Class to change brands won’t be easy, however. Edmunds reports that 65% of G-Class trade-ins resulted in another Mercedes purchase, which is significantly higher than the brand’s average of 48%.
Ivan Drury, Edmunds’ insights director, said BMW has the performance pedigree with its M brand to challenge the G-Class credibly. BMW has development experience with the X5, having produced M variants that have pushed the crossover’s limits on the track. But the Munich automaker has also hinted at its off-road ambitions with the xOffroad package on the 2025 X5.
The lifted Silver Anniversary Edition X5 includes a rear locking differential, underbody protection, roof crossbars, and specialized driving modes to handle rocks, sand, and snow. “The X5 platform is the right size to draw from since X7 sizing could pose challenges for off-road adventures,” Drury commented.
G-Class allure
The challenge for BMW will be to replicate the G-Class’s formula of nostalgic styling, off-road capability, and a sticker price that instantly elevates the driver to celebrity status. “The G-Class is an icon that wasn’t born overnight,” Drury explained. “Its particular styling is key to its success; any attempt to mimic the G-Class’s look would likely result in ridicule and rejection.”
Although BMW plans for its next-generation platforms to support an electric future, it might stick with gasoline power for this capable off-road vehicle. The sales results to date of the fully electric G-Class (G 580 with EQ technology) don’t inspire the BMW planners to insist on a fully electric version of their new off-road flagship.
