BMW has put the development of its large off-road SUV, the G74, on hold. The model was planned to compete directly with the Mercedes-Benz G-Class but is now delayed due to falling sales in China and rising tariffs. This move is part of a wider review of BMW’s future lineup and technology strategy.
G74 Project Faces Business Challenges, Not Technical
The G74 had advanced quickly in recent months. Initially intended as an all-electric vehicle on BMW’s Neue Klasse platform, the project was later shifted to the CLAR architecture. This change allowed for multiple powertrain options, including petrol, diesel, plug-in hybrid, and electric versions. However, internal sources from BMW’s Munich headquarters indicate the project is currently stalled, though no official statement has confirmed a freeze.
Market Factors Drive Rethink of Product Plans
BMW CEO Milan Nedeljković revealed the company is reassessing “which technologies, model variants, and drivetrains” will be needed going forward. He highlighted that worsening market conditions in China were a key reason for this review, noting adjustments had already begun by June.
Besides China’s weakening demand and competition from sophisticated local brands, BMW faces additional challenges like higher US tariffs, stricter European regulations, and currency volatility. These pressures are causing BMW and other German automakers to rethink their strategies in major markets.
Electric Sales Grow Despite Pause on G74
While the G74 project is on hold, BMW’s electric vehicle sales continue to rise. In the second quarter, BMW Group reported a 5.2% increase in fully electric vehicle deliveries, reaching 116,807 units. Europe is leading this growth with a 38% rise, helped by the new iX3, which has nearly 100,000 orders worldwide.
In Spain, BMW has introduced an entry-level iX3 model, signaling a focus on expanding its electric lineup. Meanwhile, in the US, combustion engine vehicles still show strong sales growth, supporting BMW’s approach to maintain a range of propulsion technologies tailored to regional markets.
No Timeline for Resuming G74 Development
BMW has not provided a timeline for when the G74 project might restart. Although only this model is currently affected, the situation reflects broader uncertainties that could impact other future programs if geopolitical and market conditions do not improve. Fans hoping for a BMW rival to the Mercedes G-Class will need to wait longer, with no confirmed return date.
Source: motor.es