BMW scraps rugged Mercedes-Benz G-Class rival – report

BMW has reportedly cancelled plans to develop an off-road SUV to rival the Mercedes-Benz G-Class and Land Rover Defender, even as rival German brand Audi continues to explore a similarly rugged luxury model.

Development of the BMW off-roader has ended, according to BMW Blog, after the project reportedly failed to receive final approval for production.

The model was intended to target the booming premium off-road SUV segment, led by the Land Rover Defender, which reached a record high of 115,404 deliveries in 2025.

Mercedes-Benz sold 49,700 G-Class SUVs globally in 2025, an increase of 23 per cent over the previous year. The lineup has since expanded to include the electric G580 with EQ Technology, while an open-top G-Class has been confirmed and a smaller 'baby G' is also in development.

Despite the segment's growth, it appears too small for BMW to justify developing a dedicated platform.

Believed to carry the codename G74, the SUV was reportedly originally planned for the company's Neue Klasse architecture, which underpins models such as the new iX3.

Amid cooling luxury EV demand, BMW then reportedly considered developing the off-roader from the CLAR architecture used by the new X5, which supports petrol, diesel, plug-in hybrid, electric and hydrogen powertrains. That's in contrast with the G-Class, which uses a bespoke body-on-frame architecture.

The BMW off-roader's lineup may also have spawned high-performance BMW M variants, after BMW M boss Frank van Meel told CarExpert earlier this year he "wouldn't say no" to such a model.

BMW has never publicly confirmed development of the off-roader and has therefore made no official announcement regarding the reported cancellation.

The reported cancellation comes as BMW plans to cut 8000 jobs, and as Audi continues to evaluate a G-Class rival of its own.

Reports from Motor1 in May 2026 quoted Audi CEO Gernot Döllner as saying the company was "evaluating" a rugged SUV aimed primarily at the US market.

Audi previewed the idea with the Q6 e-tron Off-road Concept in early 2025, featuring an increase of 160mm in ground clearance over the regular Q6 e-tron, with tracks widened by 250mm, and portal axles designed to dramatically improve off-road climbing ability.

Fellow Volkswagen Group brand Bentley has also explored the idea with the Bentayga X Off-Road Concept, powered by a 4.0-litre twin-turbo V8. The regular Bentayga shares its Volkswagen Group MLB Evo platform with the Audi Q8 and several other premium SUVs.

More broadly, if it chooses to go electric, Audi could also draw on the expertise of fellow Volkswagen Group brand Scout, which is being revived in the US as a dedicated off-road marque.

The reborn Scout brand is scheduled to launch the Traveler SUV and Terra dual-cab ute in the US in 2027 (with the brand under consideration for Australia), offering electric and range-extending electric vehicle (REEV) powertrains.

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