BMW and Mercedes-Benz go head-to-head across the prestige car market, but BMW’s missing rival to the G-Class off-roader could plug one of its last remaining gaps.
BMW could be about to expand its SUV range into uncharted territory for the brand, with plans for a hardcore off-road 4x4 taking shape.
In a report by Automotive News, insiders working on the new vehicle suggest an SUV with the capability to rival the Mercedes-Benz G-Class could reach production by 2029.
The new model may not be an expansion of BMW’s line-up, however, but rather a replacement for the high-performance XM SUV, the halo car of BMW’s M division.
With no plans for a second-generation XM, the production capacity at BMW’s Spartanburg plant in South Carolina will instead be utilised for production of the new SUV after the XM wraps up in late 2028.
Unlike the Mercedes-Benz G-Class, which uses a more traditional ladder-frame chassis construction to underpin its off-road capabilities, BMW’s off-roader is set to use a variation of the X5 chassis.
In a move that mirrors that of Range Rover models, the BMW off-roader will likely use a monocoque platform with subframe and suspension changes front and rear to give it the off-road edge compared to the more road-focused X5.
To test the appetite for a more off-road-oriented model, BMW has launched an xOffroad package for the X5 in North America.
While relatively modest in its changes, the package adds all-terrain tyres on 20-inch wheels, raised air suspension with height adjustment, underbody skid plates, and a limited-slip rear differential.
The hardware changes still fall short of the low-range gearing and front, rear, and centre locking differentials found on the G-Class.
Sales of the new BMW model, the first since the XM was launched in 2023, are expected to be modest.
Like the XM, which was designed as a halo model to attract attention to the brand, the new X-model will adopt a similar role.
Market research in the United States indicates that the G-Class has a much higher retention rate of owners than other Mercedes-Benz models, which may make it difficult for BMW to tempt customers away.
BMW also faces a battle in conveying the new model’s off-road credibility, something Land Rover and Mercedes-Benz have decades of supporting history in.
While little is known about the potential powertrains and off-road systems for the new model, the next-generation BMW X5, due to launch in 2027, could provide a glimpse of the likely powertrain options.
With slow sales of the electric G-Class, BMW may opt for a more traditional internal combustion route, and a focus on the North American market means petrol rather than diesel is shaping up as the likely choice.
Kez Casey migrated from behind spare parts counters to writing about cars over ten years ago. Raised by a family of automotive workers, Kez grew up in workshops and panel shops before making the switch to reviews and road tests for The Motor Report, Drive and CarAdvice.
