When most people think of BMW, images of sleek sports sedans tearing up the autobahn or tackling the Nürburgring’s twisting corners likely come to mind. However, the German automaker is reportedly preparing to venture off the beaten path—literally. According to a recent report by Automotive News, BMW is developing a rugged off-road SUV designed to compete with the iconic Mercedes-Benz G-Class.

The upcoming all-terrain BMW, internally codenamed G74, is expected to enter production in the second half of 2029 at BMW’s South Carolina plant. Sources suggest the SUV will ride on a modified version of the BMW X5 platform, giving it a familiar yet robust foundation suited for serious off-road adventures.

The G74 is likely to serve as an indirect successor to BMW’s XM, the large, performance-focused SUV developed by BMW’s M division. While the XM has established itself as a flagship SUV in BMW’s lineup with an emphasis on power and sporty driving, the G74 will take on a different mission: conquering rugged terrain while maintaining BMW’s signature luxury and capability. The XM is expected to be discontinued in 2028, potentially making way for the G74 on the assembly line.

BMW has already started dipping its toes into off-road territory with the xOffroad package on the X5 Silver Anniversary Edition. This package includes a rear locking differential, specialized off-road drive modes, extra underbody protection, and all-terrain tires. The G74 will likely expand on these features with even more advanced off-road capabilities and a boxier, more rugged design tailored for adventure.

Unlike the upcoming X5, which is being developed with both electric and gasoline powertrains, the G74 is expected to prioritize internal combustion. This decision aligns with sales trends showing that gas-powered G-Class models sell significantly faster than their electric counterparts, averaging 16 days to sell versus 41 days for the electric version. However, a hybrid powertrain for the G74 remains a possibility, offering a middle ground between performance and efficiency.

BMW has not officially confirmed these plans, with a company spokesperson declining to comment on speculation regarding future products. Still, the G74 represents an exciting evolution for BMW, expanding its SUV lineup into uncharted off-road territory while taking on one of the most legendary names in luxury off-roading—the Mercedes G-Class.