BMW Prepares to Challenge Its Longtime Rival: A Rugged New SUV to Compete with the Mercedes G-Class and Change the Game

BMW is planning to introduce a new and distinguished model in the luxury high-performance SUV segment, internally called the G74, aiming to be a direct competitor to the Mercedes G-Class, the iconic luxury off-road vehicle. Production of this model is expected to start in the second half of 2029 at BMW’s Spartanburg plant in the United States, refocusing the brand’s efforts on true off-road capable sporty SUVs.

Through this new SUV, BMW hopes to provide a strong and distinct alternative to the current sporty XM model, which is expected to end production by late 2028. The company will shift focus toward offering a full-size SUV that blends maximum power, serious off-road capabilities, and a high level of luxury and technology.

Key Features of the G74’s Design and Engineering Philosophy:

• Advanced Technical Architecture:
  
  

  • Built on a significantly modified version of the next-generation X5 platform rather than the larger X7 platform, enhancing performance flexibility on demanding terrains.
    
    

• Robust and Aggressive Styling:
  
  

  • Expected to feature a bold exterior aligned with strong off-road SUVs, including a raised body, longer suspension travel to improve approach, departure, and breakover angles suited for rugged conditions.
    
    

• Versatile Capabilities:
  
  

  • Designed to accommodate seven passengers across three rows, providing extra spaciousness, wrapped in a luxurious interior with premium materials and the latest infotainment and comfort technologies.
    
    

• Sophisticated Suspension System:
  
  

  • Equipped with air suspension offering a wide range of travel, plus three locking differentials, and four-wheel steering for enhanced control and agility on rough terrains or in tight spaces.
    

Expected Mechanical and Powertrain Specifications:

• Traditional Internal Combustion Engine (ICE):
  
  

  • BMW is expected to use a conventional gasoline or diesel engine, possibly supported by a mild hybrid system, emphasizing authentic power capabilities in response to weak demand for luxury electric SUVs.
    
    

• No Exclusive Focus on Electric Power:
  
  

  • With diminished sales of the electric Mercedes G-Class, the G74 will likely stick to traditional engines with technologies to improve efficiency and performance.
    
    

• Advanced Off-Road Assistance Tech:
  
  

  • Software systems specialized to ensure safe navigation on challenging roads, enhanced safety features including 360-degree cameras and topographic sensors.
    

Comparison Table Between BMW G74 and Current BMW XM Model

How BMW is Redefining the Luxury SUV Segment with the G74

• Filling a Market Gap:
  
  

  • Despite a broad portfolio, BMW lacks a true rugged and powerful SUV focused on serious off-road performance. The new G74 aims to fill this void.
    
    

• Catering to Luxury and Performance Seekers:
  
  

  • Combining genuine off-road capabilities with high luxury and cutting-edge tech, BMW expects to attract a new clientele seeking multi-purpose luxury vehicles.
    
    

• Changing Performance Strategy:
  
  

  • Moving away from the heavily sporty XM, the G74 will adopt a more professional and practical approach, becoming a best-in-class rugged SUV for families and adventurers.
    
    

Anticipated Challenges and Opportunities:

• Market Competition:
  
  

  • The segment is highly competitive with established legends such as Mercedes G-Class, Range Rover, and Lexus LX enjoying strong customer loyalty.
    
    

• Demand for Conventional Engines:
  
  

  • Despite the electric vehicle trend, there remains strong demand for traditional powertrains in capable luxury SUVs, giving the G74 an advantage.
    
    

• Future Prospects:
  
  

  • Potential for a fully electric or hybrid variant in the future aligning with BMW’s long-term electrification goals.
    
    

With the launch of the G74, BMW embarks on a bold plan to redefine the concept of luxury rugged SUVs by marrying high performance, true off-road ability, and expected luxury. This SUV will not only challenge the legendary Mercedes G-Class but also shift the landscape in the luxury multi-utility segment with a distinctively German engineering touch.

Car enthusiasts and the off-road segment eagerly await further official details and the release that promises to reshape competition in this coveted class.