The rumored BMW rugged SUV designed to rival the Mercedes-Benz G-Class has reportedly failed to secure final internal approval, according to BMW Blog, citing sources familiar with the program. The vehicle, known internally as the G74, is said to remain in limbo as BMW continues to streamline its product lineup.
BMW G74 Reportedly Fails to Secure Final Approval
Rumors of BMW developing a dedicated off-road SUV to compete directly with the Mercedes-Benz G-Class have circulated for some time. While BMW already offers the high-priced XM ultra-luxury performance SUV, it competes in a different segment despite carrying a similar price tag.
According to BMW Blog, sources familiar with the project said the G74 has not passed its final approval stage. As a result, the future of the reported model remains uncertain.
Economic Factors Said to Influence the Decision
BMW has never officially acknowledged that the G74 was under development. However, the same sources cited by BMW Blog claim the project may have been shelved because it targeted a market segment considered too small to justify the investment required to develop a bespoke luxury off-road vehicle.
BMW Blog also reported that BMW is currently focused on streamlining both its vehicle lineup and workforce, limiting its willingness to pursue niche products.
The report notes that the era when BMW introduced niche models such as the 3 Series GT and the 5/6 Series GT has passed, which may explain why the company is reportedly reluctant to launch a direct competitor to the Mercedes-Benz G-Class and Range Rover at this time.
Project Could Still Be Revived
Despite the reported setback, nothing has been officially confirmed by BMW. The report notes that the company can still approve or cancel a project as late as 18 months before production begins.
The G74 was reportedly targeted for a 2029 launch, leaving time for BMW to revive the program if the company changes direction. According to the report, BMW’s current multi-platform strategy also allows it to adjust future product plans more quickly than many competitors.
Reported Development Timeline
BMW’s reported plans for a G-Class rival first surfaced in 2024, when the project allegedly began as a benchmarking exercise involving the Rivian R1T. According to BMW Blog, the electric pickup impressed BMW engineers and executives, leading the company to explore an adventure-focused vehicle.
The report states that the original concept was fully electric and based on the Neue Klasse NA5 platform. A full-scale design model was reportedly completed, although it remains unclear whether it ever progressed into a functional prototype.
BMW Blog further reported that weaker electric vehicle market conditions later prompted a shift to the G65 CLAR flexible platform, which also underpins the next-generation BMW X5 (G65). According to the report, that approach would have enabled the G74 to offer multiple powertrain options, including plug-in hybrid and fully electric variants, along with dedicated off-road hardware to complement its rugged design.
For now, however, the report indicates that BMW has paused progress on the project, leaving the future of the rumored G74 uncertain.
