BMW is entering the rugged luxury SUV market with a G-Class rival, codenamed G74, set to debut in 2029
BMW is stepping into uncharted territory with its first dedicated luxury off-roader, the G74, designed to take on the iconic Mercedes-Benz G-Wagen. Slated for production in 2029 at BMW’s Spartanburg plant in South Carolina, this SUV will replace the XM as the brand’s flagship model. Unlike the road-focused XM, the G74 will prioritise rugged capability, blending BMW’s luxury DNA with serious off-road credentials.
The decision to challenge the G-Wagen is strategic. Mercedes has dominated the high-end off-road market for decades, with the G-Class recently celebrating its 600,000th unit sold. By entering this space, BMW aims to attract affluent buyers who value both prestige and adventure.
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What Buyers Can Expect
The BMW G-Wagen rival will ride on an upgraded X5 platform, offering a unibody construction rather than the G-Class’s traditional ladder frame. While this may limit extreme off-road performance, BMW is expected to enhance the G74 with specialized features like underbody protection, adaptive air suspension, and advanced traction control systems.
Power options remain under wraps, but insiders suggest a hybrid V8 similar to the XM’s plug-in setup could be in the mix. This would position the G74 as a direct competitor to the Mercedes-AMG G63, which boasts 577 horsepower 8. Pricing will likely mirror the G-Wagen’s premium positioning, starting well above $150,000.
Why This Move Matters
BMW’s foray into the luxury off-road segment isn’t just about competing with Mercedes—it’s about filling a gap in its lineup. While the X5 with the xOffroad package offers mild off-road capability, the G74 will be the brand’s first true adventure-ready SUV. This shift reflects changing consumer tastes, where rugged luxury SUVs are increasingly in demand.
However, BMW faces an uphill battle. The G-Wagen enjoys fierce loyalty, with 65% of U.S. buyers trading in their G-Class for another Mercedes. To succeed, BMW must convince buyers that its G-Wagen rival delivers equal prestige and capability.
The Future of Luxury Off-Roading
With Audi and Genesis also eyeing the G-Class segment, BMW’s entry signals a heated battle ahead. If executed well, the G74 could redefine BMW’s image, proving that the brand can compete beyond pavement performance. For now, all eyes are on 2029, when this luxury off-roader finally hits the road.
