BMW is working on an all-new, rugged SUV, known internally as the G74, aimed squarely at rivalling the iconic Mercedes-Benz G-Class.

Production is scheduled to commence in the second half of 2029 at the company’s manufacturing facility in South Carolina. Industry insiders suggest the model will be based on a heavily revised version of the current X5 platform, but with significant modifications to enhance its off-road credentials. The G74 is expected to sit at the top of BMW’s SUV line-up as a new flagship for serious all-terrain performance.

In a notable strategic decision, BMW plans to keep the model powered by an internal combustion engine, potentially paired with hybrid technology. This approach reflects ongoing global demand for petrol-powered luxury SUVs, a segment that continues to attract strong interest even as electric vehicle sales in certain niches. such as the all-electric Mercedes-Benz G-Class, show signs of slowing.

Hints of BMW’s future direction surfaced recently with the introduction of the xOffroad package for the X5 Silver Anniversary Edition. This package includes all-terrain tyres, underbody protection and a rear locking differential – features that could be further developed and refined for the G74.

While the German manufacturer has made it clear that pickups remain outside its brand identity, senior figures within BMW have expressed a willingness to explore more rugged SUV concepts. The company is acutely aware of the growing global demand for vehicles that combine comfort, premium features, and genuine off-road capability, a market in which the G-Class has enjoyed decades of dominance.

If the G74 delivers on its promise, BMW could soon be competing in one of the most exclusive and competitive corners of the SUV market, offering an alternative for customers seeking both luxury and the ability to tackle demanding terrain with confidence.