BMW May Be Gearing Up to Build Its Most Rugged and Adventurous SUV Yet

According to an insider tip, the German automaker is building a real-deal off-roader that could rival the Mercedes-Benz G-Class.

Front side view of a gray BMW SUV with mud splatters on the body and tires, parked on a dirt surface with sand dunes in the background. The vehicle features black alloy wheels and a distinctive kidney grille.

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By Gray Van Dyke

Published August 13, 2025

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Updated August 13, 2025

BMW first broke into the SUV market over 25 years ago with the launch of the X5. While the German automaker has since expanded its lineup to include high-riding coupes, hybrid performance models and even EVs, it has yet to field an off-roader in the segment.

Not one that’s comparable to a G-Class or a Range Rover in its luxury and capabilities, anyway.

Two silver BMW SUVs are positioned on a dirt hill with a mountainous landscape in the background. The SUV in the foreground faces slightly to the right, showing its front and side, while the SUV in the background is angled to the left, showing its rear and side. Both vehicles have roof racks and sporty alloy wheels. The scene is set during a misty, golden hour with soft sunlight illuminating the area. — BMW broke into the SUV market with the X5 in 1999, but the brand only recently gave the model a mechanical locking rear differential through the xOffroad package.

However, according to a recent report, BMW is gearing up to take on the likes of Mercedes-Benz, Land Rover and Lexus with a refined all-terrain model that’ll indirectly replace the current XM.

G-class competitor

As first reported by Automotive News, an insider at BMW has said that the brand is developing a rugged SUV with an internal model codename of G74. According to BMWBlog, ‘Rugged’ is also supposedly serving as the working title.

Slated to go into production starting in 2029, the model will roll out on the next-generation Neue Klasse X5 chassis and serve as the marque’s new high-riding halo car.

Black BMW SUV driving on a winding road with desert vegetation in the background. The vehicle features distinctive red accents outlining the kidney grille and along the side windows, with sleek, narrow headlights and sporty black wheels. — The XM was meant to be BMW’s flagship, but its controversial styling and high sticker price mean that it’s been the brand’s slowest seller.

Now, BMW has tried a similar approach with its hybrid XM flagship — and that model hasn’t exactly been a success due to its high price point and controversial styling. On the contrary, it was the brand’s slowest seller throughout last year.

That said, the upcoming G74 will differ in that it will be a true off-roader rather than a pavement-pounding performance SUV. Moreover, in borrowing from the forthcoming X5, there’s potential for it to be a hybrid, an EV or even a strictly gas-powered model.

BMW X5 xDrive 45e SUV driving uphill on a dusty, rocky terrain with mountains in the background, viewed from the rear left side. The vehicle is gray with roof rails and tinted windows. — The G74 will share its platform with the next-generation X5, but word is that the model will also receive some significant tweaks in keeping with its off-road intentions.

That’s SAV to you

Upon the launch of the X5 back in 1999, BMW coined a new term for the vehicle: SAV, or Sports Activity Vehicle. It’s effectively a matter of semantics, but this distinction has influenced the brand’s approach to building SUVs.

After all, even though the model boasted all-wheel drive, off-road engine management and other Land Rover-developed all-terrain features, it was still designed with on-road driving in mind. For instance, BMW engineered the X5 with rear-wheel bias to provide for a smoother ride.

Silver BMW SUV parked on a dirt hill with a starry night sky and mountains in the background. The vehicle has black roof rails and sporty alloy wheels. — BMW coined the ‘SAV’ term with the arrival of its X5 in 1999, but the brand now wants to give its lineup some added utility to remain competitive with its luxury rivals.

The German automaker has since bestowed the X5 with more compelling all-terrain capabilities through the addition of the optional xOffroad package. Along with 2-axle air suspension for increased ground clearance, it also provided real-deal upgrades like a mechanical rear differential lock and underbody protection plates.

In other words, even though the package debuted on a limited-edition 25th Anniversary model, it demonstrates that BMW is actively interested in turning its X5 SAV into a true SUV. At this point, production is only a distant possibility, but this gives the brand plenty of time to refine the G74 concept.

About the Author: Gray is an associate editor at Gear Patrol, covering cars, motorcycles and anything else with wheels. When he’s not chasing the latest industry news, he’s probably wrenching on one of many projects. For better or worse, he believes classics make perfectly practical daily drivers.