BMW entered the SUV market more than 25 years ago with the launch of the X5 in 1999. Since then, the German automaker has significantly expanded its lineup, adding coupe-styled crossovers, high-performance hybrids, and even fully electric models. Yet, one piece of the puzzle has always been missing: a true off-roader capable of standing toe-to-toe with icons like the Mercedes G-Class or the Range Rover.
According to a report from Automotive News, BMW is developing a brand-new rugged SUV, internally known by the codename G74. Sources close to the project suggest the working name could be BMW Rugged, a straightforward hint at the vehicle’s purpose. Production is expected to begin in 2029, riding on the next-generation Neue Klasse X5 platform.
The mission is to create a flagship SUV that will indirectly replace the current BMW XM, a model that received mixed reviews due to its polarizing design and steep price tag. Unlike the XM, however, the upcoming G74 will not be a road-focused performance SUV but a true premium off-roader, engineered to handle demanding terrain while still delivering BMW’s signature luxury experience.
Powertrain options are still under wraps, but industry insiders expect a range of possibilitie, from plug-in hybrids to fully electric versions, with gasoline variants likely offered in specific markets. This flexibility would align with BMW’s modular Neue Klasse architecture.
Historically, BMW has always branded its SUVs as SAVs (Sports Activity Vehicles) to highlight their road-oriented DNA compared to traditional off-road rivals. The original X5, for instance, debuted with all-wheel drive and some Land Rover-inspired hardware but was ultimately designed with a rear-wheel-drive bias for sportier handling. Over time, though, BMW has steadily enhanced the X5’s off-road credentials. The xOffroad Package added two-axle air suspension, a mechanical rear differential lock, and protective skid plates, clear signs that the automaker has been laying the groundwork for a more adventure-ready model.
The G74 project, then, isn’t coming out of nowhere. Instead, it represents the natural evolution of SAV philosophy into something more rugged and capable. BMW has plenty of time to fine-tune the concept, ensuring its upcoming off-roader can finally stand as a credible rival to the segment’s long-established champions.
