BMW is reportedly developing an adventure-focused rival to the iconic Mercedes-Benz G-Wagen as its new flagship off-roader, with production planned for 2029. 

According to Automotive News, the new model – codenamed G74 – will be based on the BMW X5 SUV and manufactured at the same US factory in Spartanburg, South Carolina.

When approached by CarExpert, BMW wouldn’t confirm the vehicle, which Automotive News reports won’t serve as a volume seller, but instead provide a halo model for the brand like the current, performance-focused XM SUV.

Heading off-road also brings BMW into a potentially lucrative sector, given the high transaction prices for the G-Wagen.

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Above: BMW XM

The new BMW would also face the current L663 Land Rover Defender – which now uses car-like unibody construction, like the X5 – and the BMW-powered, body-on-frame Ineos Grenadier off-roader, as well as the body-on-frame G-Wagen.

The G74 will reportedly be a replacement for the plug-in hybrid (PHEV) XM whose production is expected to end in November 2028.

What will power the new flagship is still unknown, with BMW having greater success than Mercedes-Benz in transitioning to electric power. The brand set a new sales record in Australia in 2024, and one-third of the vehicles it sold were EVs.

BMW may be wary, however, of an anonymous Mercedes-Benz executive who described the battery-electric G-Wagen – which went on sale in Australia in June 2025 – as a failure after slow sales.

Above: Mercedes-Benz G580 with EQ Technology

“The car is sitting like lead at dealers; it’s a complete flop,” the unnamed executive told German business newspaper Handelsblatt.

BMW could use hybrid tech, such as the plug-in hybrid V8 powertrain found in the XM. The company has committed to ongoing internal combustion engines for other high-end models including the latest PHEV V8 G90/G99 BMW M5 sedan and wagon. 

This could provide a rival to the V8-powered Mercedes-AMG G-Wagen. BMW has credibility in the high-performance SUV stakes, but less pedigree in the off-road space where Mercedes-Benz has offered a G-Wagen since 1979.

Above: BMW X7

Using the next X5 underpinnings will give the G74 similar dimensions to the Mercedes-Benz G-Wagen, which in AMG G63 guise measures 4873mm long, 1984mm wide and 1979mm tall with 282mm of ground clearance.

The sizing also provides greater opportunity for off-road prowess compared to the larger BMW X7. 

BMW has over the years offered X5s with an xOffroad package with air suspension and a locking differential, but it has never offered an SUV quite as rugged as the G-Wagen.

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