BMW is embarking on an unprecedented journey into the rugged off-road SUV segment, a territory traditionally dominated by the likes of the Mercedes-Benz G-Class. This strategic pivot comes as the Bavarian automaker seeks to redefine its high-end SUV lineup, moving beyond the commercially challenging XM. The forthcoming vehicle, known internally as the G74, represents a bold departure, emphasizing robust performance and utilitarian design over the sleek, road-biased aesthetics of its predecessors. This new direction is poised to carve out a distinct niche for BMW, combining its signature engineering prowess with a newfound adventurous spirit, all while aiming to capture a segment of the luxury SUV market that values capability as much as prestige.
\nBMW's Strategic Leap: The G74 Emerges in 2029 to Conquer Off-Road Territory
\nIn a significant development for the automotive world, reports from Automotive News on August 13, 2025, confirmed BMW's ambitious plans to introduce a formidable off-road SUV, designated G74. This groundbreaking vehicle is designed to directly rival the iconic Mercedes-Benz G-Class, marking a historic entry for BMW into a segment where it has previously only offered mild off-road packages, such as those seen on the X5 Silver Anniversary Edition. The G74 is slated to inherit the crucial role of BMW's halo SUV, stepping in for the current XM, which has struggled to gain market traction.
\nUnderpinning this new contender will be a specially adapted version of the next-generation X5 platform. While the X5 is a unibody crossover, the G74's foundation will be meticulously re-engineered to deliver the unparalleled off-road capabilities expected of a true challenger to the G-Class. Speculation suggests the G74 will feature a potent internal combustion engine, likely in a sophisticated plug-in hybrid configuration, rumored to generate in excess of 550 horsepower. This powerful setup ensures that the G74 will deliver exhilarating performance, both on and off the asphalt. While an all-electric variant is not ruled out, BMW is proceeding with caution, learning from the mixed reception of other electric off-road vehicles.
\nAlthough no official images have been released, industry observers anticipate a design that prioritizes a boxier, more upright silhouette, diverging from BMW's traditional road-focused SUV aesthetics. It is hoped that the G74's visual language will draw inspiration from the clean, progressive lines of BMW's Neue Klasse concepts, marrying rugged functionality with contemporary design. Production of the G74 is projected to commence in 2029 at BMW's esteemed manufacturing facility in South Carolina, following the planned discontinuation of the XM model. This move solidifies BMW's commitment to delivering a truly distinct and capable off-road luxury vehicle.
\nThe decision to replace the XM stems from its underwhelming performance in the marketplace. Despite its aspirational positioning and striking aesthetics, the XM's high price point and polarizing design failed to attract the desired clientele, particularly in comparison to competitors like the Lamborghini Urus. Sales figures for the XM in the United States, which saw a 24% decline in the second quarter of the current year, underscored its commercial challenges. Furthermore, many enthusiasts found its heavy plug-in hybrid system and SUV form factor to be misaligned with the legacy of the M brand, especially as the first standalone M car since the legendary M1. With the X5 M offering a more accessible, agile, and aesthetically pleasing alternative, the XM's value proposition became increasingly difficult to justify. The G74, therefore, represents a calculated and necessary shift, embracing a new paradigm of performance and utility for BMW's flagship SUV offering.