Earlier today, Automotive News confirmed what we’ve been hinting at since 2024: BMW is developing an all-new SUV, internally codenamed G74 and carrying the working title “Rugged.” Our BMW sources say the Rugged will mark the brand’s entry into an all-new segment. Far from being a dressed-up G65 X5, it’s a ground-up model with a distinct mission and engineering approach.
From Competitor Tests to Reality: How the Rugged Was Conceived
The Rugged will be built at BMW’s Spartanburg, South Carolina plant, but that wasn’t always the plan. Back in 2022 and 2023, BMW executives and engineers were quietly evaluating competitor products, including the Rivian R1T, which earned high praise within the company. Those tests planted the seed for a more adventurous, off-road-capable BMW — one positioned to compete directly with premium lifestyle SUVs and trucks.
The original concept for the BMW Rugged was a very different machine. It was conceived as a purely electric model built on the Neue Klasse NA5 iX3 platform, therefore, it would had to be built either in Debrecen, Hungary or San Luis Potosi, Mexico. According to insiders, a full-scale design model was allegedly created, although it’s unclear whether it graduated to a functional prototype. As market conditions began to shift and EV demand cooled, BMW leadership decided to rethink the approach. The NA5-based project was shelved in favor of a new plan: keep the Rugged name, but move the vehicle to the CLAR architecture under the G74 codename. This change opened the door to multiple drivetrains, including plug-in hybrid and fully electric versions.
CLAR Platform Brings Hybrid and EV Flexibility
The platform switch also means the Rugged will share powertrain technology with the upcoming G65 X5. That points to the top electric version delivering performance similar to the iX5 M70’s rumored 610+ horsepower, while the plug-in hybrid could offer between 500 and 550 horsepower. The EV variant will use BMW’s next-generation Gen6 battery and motor technology, targeting at least 700 kilometers of range on the WLTP cycle, though final figures are still to be confirmed.
Interior to Showcase Neue Klasse Design Language
Size and capability will be central to the Rugged’s appeal. Sources say it will be a large SUV with three-row seating, a wide-opening panoramic roof, and even tailgate seating aimed at outdoor enthusiasts, taking cues from rivals in the segment. Inside, the design and technology will follow BMW’s upcoming Neue Klasse approach, which will first be seen in the G65 X5 due next year.
Launch Scheduled for 2029 With Multiple Drivetrains
According to both our reporting and Automotive News, the BMW Rugged is scheduled to launch in 2029. That timeline gives BMW ample opportunity to refine the product, adapt to shifting market conditions, and incorporate the latest hybrid and EV advancements into what will be its most off-road-oriented mainstream model yet. Far from a tougher X5, the G74 Rugged represents BMW’s first serious attempt to break into the adventure SUV space — a move that could redefine the brand’s image in one of the most interesting premium segments, at least in our opinion.
[Initial report by AutoNews]