BMW Reportedly Developing X5-Based Off‑Road SUV to Rival Mercedes G‑Class

BMW Reportedly Developing X5-Based Off‑Road SUV to Rival Mercedes G‑Class

2025-08-13
0 Comments Daniel Rivers

3 Minutes

BMW's new off-road contender: what we know

BMW is reportedly preparing a rugged, X5-derived SUV aimed at taking on the Mercedes‑Benz G‑Class. According to Automotive News, the project — internally known as the G74 — is expected to enter production in the second half of 2029 at BMW’s South Carolina plant. Unlike the traditional image of BMW as a maker of high‑speed sports sedans and Nürburgring‑ready performance cars, the G74 would push the brand deeper into premium all‑terrain territory.

Platform, production and lineage

The G74 is said to ride on a heavily adapted version of the BMW X5 platform. Production would replace the current XM flagship — BMW’s big, M‑division performance SUV — which could be discontinued in 2028. Built on the same South Carolina assembly line as the XM today, the G74 would take over that halo role, but with an emphasis on off‑road capability rather than outright on‑track performance.

Design and off‑road equipment

Expect a boxier, tougher design than the X5, with stronger underbody protection, rugged bumpers, and a more upright silhouette to improve approach and departure angles. BMW recently introduced an xOffroad package on a special X5 Silver Anniversary Edition — including a rear locking differential, dedicated off‑road drive modes, skid plates and all‑terrain tires — and the G74 should extend those features further into standard equipment on the production model.

Likely chassis and hardware

Key off‑road hardware will likely include increased ground clearance (adjustable air suspension is possible), reinforced subframes, selectable terrain modes, rear locking differential, and heavy‑duty cooling and underbody protection. These elements will help the G74 compete with established luxury off‑roaders.

Powertrains and performance

While BMW is developing the next X5 generation with both electric and internal combustion options, sources suggest the G74 will primarily favor internal combustion or a hybrid setup. The electric G‑Class has been slower to sell than the gasoline variant, so BMW may opt for a combustion or plug‑in hybrid powertrain to balance range, towing capacity and customer demand. An M‑tuned performance variant from BMW M is also possible, delivering higher output and enhanced chassis tuning for spirited driving on and off road.

Market positioning and competition

The G74 would be positioned as a luxury halo SUV with serious off‑road credentials, targeting buyers who want premium comfort and brand prestige but also true overland capability. Direct comparisons will be made with the Mercedes‑Benz G‑Class and rivals such as the Range Rover and Defender; BMW’s differentiator could be a sportier driving character combined with dedicated all‑terrain hardware.

Summary

BMW’s G74 project signals a deliberate move into high‑end off‑road territory, leveraging the X5 architecture while adding rugged design, underbody protection and advanced off‑road technology. With production earmarked for late 2029 in South Carolina and potential hybrid or combustion powertrains, the G74 aims to become BMW’s answer to the G‑Class — a halo SUV that blends luxury, capability and brand cachet.

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