BMW Says New X5 Prioritizes Performance Upgrades Over Off-Road Capability

BMW executives stated that the all-new X5, codenamed G65, was not developed with enhanced off-road capability as a priority; engineering resources were instead focused on other aspects. Compared to its predecessor, the new X5 features a larger body, increased cargo capacity, a wider range of powertrain options, significantly improved fuel efficiency, and optimized driving dynamics through BMW’s "Heart of Joy" technology—making it the most capable X5 generation to date. Philip Koehn, Senior Vice President of BMW Luxury Vehicles, BMW ALPINA, and Rolls-Royce, noted that although he once witnessed the previous-generation X5 (G05) performing demanding off-road maneuvers at the Monticello Motor Club in New York, he believes typical customers do not use the vehicle in such extreme conditions. He added that further enhancing the X5’s off-road performance is currently not part of BMW’s plans. Additionally, BMW is developing a new model internally codenamed G74, under the project name “Rugged,” slated for launch in 2029. Positioned as a three-row SUV tailored for adventure-oriented scenarios, it will surpass all previous X models in off-road capability and feature unique elements such as tailgate-mounted seats. It will be more than just a raised X5. The new X5, meanwhile, will continue with a two-row seating configuration.