BMW is preparing to enter the high-end off-road SUV market, aiming directly at the iconic Mercedes-Benz G-Class. The move comes as demand for capable luxury adventure vehicles grows, with the G-Class continuing to dominate the segment despite its age. Mercedes sold nearly 50,000 G-Classes in 2023 alone, a record for the model, demonstrating clear consumer appetite for this type of vehicle. This success has prompted other brands, including Audi and Genesis, to consider similar offerings.

Project Details and Timeline

The project, internally known as G74, is still in early development, with an expected launch toward the end of the decade. Though BMW has not officially confirmed the vehicle, numerous reports provide details on its potential features. Production is planned for BMW’s Spartanburg, South Carolina plant, alongside existing SUV models like the X5 and X7.

Platform and Design

The new SUV will likely be built on a modified version of the platform used in the next-generation BMW X5, leveraging the existing CLAR architecture. This platform will be reinforced for enhanced off-road performance. Design renderings suggest a boxier, more upright silhouette compared to BMW’s current crossovers, featuring chunky tires, increased ground clearance, and rugged cladding. The interior will adopt BMW’s minimalist Neue Klasse design language, with a large central infotainment display and potentially a third row or even tailgate seating inspired by the Rolls-Royce Cullinan.

Powertrain Options

BMW hasn’t revealed specific powertrain details, but multiple options are expected. The current BMW XM’s twin-turbocharged 4.4-liter V8 plug-in hybrid, producing up to 738 horsepower, is a strong contender. A non-electrified version of this engine is also possible. Some level of electrification – whether mild-hybrid, plug-in hybrid, or fully electric – seems probable, given BMW’s commitment to future emissions regulations. BMW M CEO Frank van Meel has even indicated openness to an M-badged high-performance variant.

Pricing and Market Positioning

Given the G-Class’s pricing – starting around $155,000 for the base G550 and reaching $199,000+ for the AMG G63 – BMW’s offering will likely start above $150,000. A high-performance M variant could approach or exceed the $200,000 mark. The SUV may also replace the BMW XM as the brand’s halo model, with production of the XM potentially ending around 2028.

The upcoming BMW SUV represents a strategic move to capitalize on a growing market segment. With the G-Class facing little direct competition for decades, BMW’s entry could significantly alter the landscape, offering buyers a viable alternative in the luxury off-road space.