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BMW has reportedly abandoned its plan to develop a rugged off-road SUV designed to take on the Mercedes-Benz G-Class and Land Rover Defender, even as rival Audi pushes forward with its own luxury off-roader.
According to a report from BMW Blog, development of the high-riding model came to a halt after the project failed to secure final approval for production. The decision marks a strategic retreat from one of the hottest segments in the premium SUV market.
The segment in question has been booming. Land Rover set a new record with 115,404 Defender deliveries in 2025, while Mercedes-Benz sold 49,700 G-Class units globally during the same year — a 23% increase over 2024. Mercedes has also expanded the G-Class lineup with the electric G580, confirmed an open-top variant, and is developing a smaller “baby G” model.
Yet despite the growth, BMW apparently concluded the segment was too niche to justify the investment required for a dedicated platform. The SUV, believed to be code-named G74, was initially planned for BMW’s Neue Klasse architecture, which also underpins models like the new iX3. As luxury EV demand cooled, BMW reportedly considered switching to the CLAR architecture — the same platform used by the new X5, which supports petrol, diesel, plug-in hybrid, electric, and hydrogen powertrains. That’s a stark contrast to the G-Class, which uses a bespoke body-on-frame chassis.
High-performance BMW M variants of the off-roader were also being considered. BMW M boss Frank van Meel told CarExpert earlier this year that he “wouldn’t say no” to a rugged M model. But with the project now dead, those plans are off the table.
BMW has never publicly confirmed the development of the off-roader, so no official announcement has been made about its cancellation. The news comes as BMW prepares to cut 8,000 jobs globally, part of broader cost-cutting measures as the industry shifts toward electrification.
Industry analysts see the move as a pragmatic decision. “BMW is focusing its resources on core models and the transition to electric vehicles,” said John Smith, senior analyst at AutoForecast Solutions. “Building a niche off-roader from scratch would require a massive investment with uncertain returns, especially given the dominance of the Defender and G-Class.”
Meanwhile, Audi is not backing down. The German automaker continues to evaluate a G-Class rival, primarily targeting the US market. Audi CEO Gernot Döllner confirmed in May 2026 that the company is “evaluating” a rugged SUV. The brand previewed the idea with the Q6 e-tron Off-road Concept in early 2025, which featured a 160mm increase in ground clearance, 250mm wider tracks, and portal axles for improved climbing ability.
Bentley, another Volkswagen Group brand, has also explored the concept with the Bentayga X Off-Road Concept, powered by a 4.0-liter twin-turbo V8. The Bentayga shares the MLB Evo platform with the Audi Q8 and other premium SUVs. If Audi chooses an electric route, it could draw on the expertise of Scout, the revived off-road brand under Volkswagen Group, which is set to launch the Traveler SUV and Terra dual-cab ute in the US in 2027.
The decision by BMW to walk away from the rugged SUV segment underscores the challenges automakers face in balancing niche product ambitions with the massive investments required for electrification. While the premium off-road market is growing, it remains a fraction of the overall SUV market, and BMW appears to have decided that the numbers simply don’t add up.
For now, the G-Class and Defender continue to dominate without a direct BMW rival. And with Audi still exploring the space, the battle for the ultimate luxury off-roader is far from over — just without Munich’s involvement.
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