Hardcore off-road BMW? Bavarian brand plotting 2026 Lexus GX, Land Rover Defender and Mercedes-Benz G-Wagen rival based on 2026 X5 mid-size SUV: report

A new report from industry source Automotive News claims BMW is working on a brand new nameplate designed specifically to be an off-road capable rival to the likes of the Lexus GX and Mercedes-Benz G-Wagen.

Quoting insiders with knowledge of the program, Automotive News says the incoming off-road focused model is codenamed G74 and is due as far out as the second half of 2029, planned to be built at BMW’s Spartanburg plant in the USA.

Apparently it is developed from the current X5, suggesting it will be a mid-size rival to the Lexus GX, with potential rivals also including Land Rover’s Defender.

Automotive News also suggests this new off-road model will effectively replace the XM flagship combustion performance SUV when production of the current version ends in 2028.

Of all the German brands, BMW is perhaps least known for off-road SUV antics, although it has flirted with the idea before, offering the original X3 as a rally raid machine, and most recently showing a current-generation X3 M50 with some off-road modifications at the Rebelle Rally in the USA.

The 2024 X3 featured custom skid plates, an all-terrain wheel and tyre package, roof rack kit, storage boxes, light pods, and protective film for the paint.

Meanwhile the current X5 is available in the US with an xOffroad Package which adds all terrain tyres, air suspension, and a rear limited slip differential to help bolster the standard car’s off-road abilities, albeit not to the same extent as some of its rivals.

The lucrative off-road market continues to grow around the world, not just in the USA where this new BMW is planned to be built, but also in China where even Lexus recently showcased an entire range of overlander-style versions of its NX, GX, and RX at the Shanghai Motor Show earlier in 2025.

Chinese domestic brands are sprouting off-road focused spin-offs, like Chery’s Jetour, or GWM’s Tank, while more luxury-focused brands are making a point of having a G-Wagen-style off-road capable flagship model, like BYD’s YangWang U8 or the lesser Denza B5.

It’s possible the X5 off-road spin-off could land in Australia, given the current X5 (which starts from $138,600 before on-roads for the base xDrive 30d) is sourced from the USA for our market, despite requiring right-hand drive.

Given the brand’s lack of track record off the tarmac, it would have to prove itself against the increasingly popular Lexus GX (currently the top selling vehicle in the large SUV $120k+ market segment) and strong-selling Land Rover Defender (currently the second-best selling large SUV between $80k and $120k), although it will also face tough competition from expensive mainstream flagship off-roaders, the Nissan Patrol (a new-generation version will have arrived by 2027), and the perennial Toyota LandCruiser 300 series.