BMW Plots Bold Off-Road Flagship to Take on G-Class and Redefine Luxury SUVs

Is BMW Finally Building a True G-Class Rival?

BMW’s SUV lineup is already a buffet of choices, but there’s always been one thing missing: a no-compromise, go-anywhere off-roader that could stare down the Mercedes G-Class, Lexus LX, or Range Rover without flinching. That gap might not last much longer. According to multiple industry insiders, BMW is quietly developing a flagship SUV—internally dubbed the G74—designed to take on the world’s most iconic luxury 4x4s. Production is reportedly set for BMW’s Spartanburg, South Carolina plant, with a launch window in the second half of 2029.

Why Is BMW Targeting the G-Wagen Now?

Let’s be honest: the G-Class is more than just a luxury SUV. It’s a status symbol, a rolling fortress, and a cult favorite among everyone from off-road purists to celebrities. BMW’s current top-tier SUV, the XM, is a performance monster but leans heavily toward on-road thrills. The G74, on the other hand, aims to fill a different niche—one that’s less about lap times and more about conquering the unbeaten path.

Market data backs up the move. According to Edmunds, a whopping 65% of G-Class trade-ins in the US go right back into another Mercedes. That’s loyalty you can’t buy with just horsepower or tech. To break into that club, BMW needs something genuinely different—something that can get muddy, climb rocks, and still look sharp outside a five-star hotel.

What Makes This BMW Off-Roader Different From an X5 or X7?

While BMW’s X5 and X7 are both capable in their own right, they’re more about comfort and speed than crawling through boulder fields. The upcoming G74 is expected to ride on the next-generation X5’s unibody platform, which might sound odd at first. But here’s the twist: this setup could actually make the SUV more nimble and capable off-road, especially when paired with serious upgrades like beefed-up suspension, specialized off-road software, and a rugged new look.

Recent releases like the X5 Silver Anniversary Edition, which comes standard with the xOffroad package, hint at BMW’s growing appetite for adventure. Think of the G74 as the natural evolution—bigger, tougher, and built to tackle terrain that would send a regular X5 running for cover.

Will BMW Stick With Gasoline Power or Go Electric?

With the electric Mercedes G-Class struggling to gain traction in the market, BMW is expected to play it safe—at least for now—by sticking with internal combustion engines for its off-roader. That’s a smart move. While EVs are making waves in the luxury segment, many hardcore off-roaders still prefer the reliability and range of traditional powertrains, especially when venturing far from civilization.

That said, don’t be surprised if BMW eventually offers a hybrid or plug-in variant down the line. The brand has a history of blending performance and efficiency, and regulatory pressures aren’t going away. But for the first generation, expect a focus on proven tech that won’t leave you stranded in the wilderness.

Could This New SUV Replace the BMW XM?

Here’s where things get interesting. The G74 isn’t just another addition to the lineup—it could actually replace the XM as BMW’s halo model. The XM, launched as the first standalone M car since the legendary M1, made waves with its bold design and hybrid powertrain. But according to AutoForecast Solutions, production could end as soon as November 2028, just five years after its debut.

Why the shift? BMW seems to believe that a rugged, high-end SUV will resonate more with today’s luxury buyers than a road-focused performance SUV. It’s a calculated gamble, but one that aligns with global trends. The luxury off-roader segment is booming, and buyers are increasingly looking for vehicles that can handle both city streets and wild trails.

How Will BMW Convince G-Class Loyalists to Switch?

This is the million-dollar question. G-Class owners are notoriously loyal, and Mercedes has spent decades building that trust. BMW’s answer? Offer something that’s just as capable, but with a distinctly Bavarian twist—think sharper handling, cutting-edge tech, and a design language that stands out from the crowd.

There’s also talk of an M-badged variant, aimed squarely at the Mercedes-AMG G63. If BMW can deliver the same blend of brute strength and on-road refinement, it might just tempt a few G-Wagen devotees to make the jump. But make no mistake: winning over this crowd won’t be easy. It’ll take more than a fancy badge and a big engine.

What Does This Mean for the Future of BMW SUVs?

The arrival of the G74 signals a major shift in BMW’s SUV strategy. Instead of chasing the Lamborghini Urus or Porsche Cayenne on the track, the brand is doubling down on versatility and adventure. It’s a move that could pay off big, especially as luxury buyers demand more from their vehicles than ever before.

The big takeaway? BMW’s new off-roader isn’t about perfection—it’s about smarter adjustments. Start with one change this week, and you’ll likely spot the difference by month’s end. Whether you’re a die-hard BMW fan or just curious about the next big thing in luxury SUVs, keep your eyes on Spartanburg. The next chapter in the off-road wars is about to get very interesting.