BMW is revving up to take on Mercedes-Benz and Land Rover in a key vehicle segment—as the automaker digs in to expand its market share.
The details: According to a report from Automotive News, the Munich-based company is developing a new off-road-capable SUV, codenamed G74, to rival the Mercedes-Benz G-Class and Land Rover Defender. Yep, look out, G-Wagen.
Design elements will likely align with the company's new Neue Klasse lineage– with some more traditional rugged styling cues.
Inside, the BMW off-roader is expected to feature three-row seating for up to seven people—with more premium materials.
The off-road performance features include long-travel air suspension, up to three locking differentials, advanced four-wheel drive, and four-wheel steering. The rugged SUV will launch with a gas-powered engine—though BMW has not ruled out an electric variant, according to reports.
What they’re saying: “We’re aware of the market potential [of such a vehicle]. It’s more than just discussions. We have been planning this for a while. It will definitely need an internal combustion engine,” a BMW Senior Manager told Autocar.
Why it matters: Launching a competitor to vehicles like the Mercedes G-Wagen gives BMW an even higher-profit play in the premium sector, with a halo vehicle that can help draw other buyers to the brand.
Between the lines: BMW’s plans to launch an off-roader to appeal to buyers, who might be considering a G-Wagen or Defender, come as the automaker continues to grow its share in various segments of the premium market.
BMW’s high-performance “M” brand just posted its best first-half sales period to date, delivering nearly 105,962 vehicles globally through June—up 6.5% from H1 2024.
The automaker has also been winning in the EV segment (including all-electric and plug-in models)—with its Q2 2025 sales increasing by 10.2% year-over-year, hitting 161,462 units.
BMW’s overall sales increased by 1.4% in the U.S. in Q2 2025—whereas Mercedes saw a 14% drop in its North American sales in Q2 compared to the same period in 2024.
Bottom line: The BMW, codenamed G74, signals that BMW is aiming to deepen its positioning in the high-margin luxury segment—building on its record M-division sales, double-digit EV growth, and steady U.S. gains to capture market share from chief competitors like Mercedes-Benz.
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