BMW Is Reportedly Developing an X5-Based Mercedes G-Class Rival
BMW is apparently working on a rugged all-terrain SUV based on the next-generation X5’s platform as an indirect successor to the sporty XM.
By Caleb MillerPublished: Aug 13, 2025
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Marc Urbano|Car and Driver
BMW is developing an off-road SUV to rival the Mercedes-Benz G-class, according to a report from Automotive News.
This future SUV would be based on the next-generation X5’s platform and would likely feature a gas engine.
Production will reportedly start in 2029 at BMW’s South Carolina factory, replacing the XM SUV.
The name BMW usually conjures up images of high-powered sports sedans cruising at triple digits on the autobahn or tearing up the twisty Nürburgring racetrack, but now the German automaker is getting ready to explore new environments. According to a report from Automotive News, BMW is developing an off-road SUV intended to go into production later this decade and take on the legendary Mercedes-Benz G-class.
Automotive News cites anonymous BMW insiders who say that production of the all-terrain BMW will kick off in the second half of 2029 at BMW’s factory in South Carolina. The new SUV reportedly carries the internal code name G74 and will ride on an adapted version of the BMW X5’s platform.
Marc Urbano|Car and Driver
The off-road SUV will likely serve as a sort of indirect successor to the XM, a large SUV developed by BMW’s M performance division with a focus on big power and sporty driving. The XM has served as a flagship for BMW’s SUV lineup, and the G74 off-roader would occupy a similar halo-model role, just with a bias towards exploring untouched terrain instead of carving up tarmac. The XM is currently built in South Carolina and could be discontinued in 2028, replaced on the assembly line by the G74.
BMW recently added an xOffroad package to the BMW X5 for its Silver Anniversary Edition, which included a rear locking differential, special off-road drive modes, extra underbody protection, and all-terrain tires. The G74 should take the all-terrain upgrades even further, and will likely feature a boxier, more rugged design.
While the next generation of the BMW X5 is being developed with both electric and gas powertrains, we expect this off-road SUV to stick to internal combustion. The electric G-class isn’t selling nearly as quickly as the traditional gas model, taking an average of 41 days to sell versus 16 days for the gas-powered G-class, according to Automotive News. The BMW G74 could potentially end up with a hybrid powertrain, however. We’ve reached out to BMW for comment on this report and will update this story when we’ve heard back.
