Mercedes-Benz’s ambitious leap into electrifying one of its most iconic vehicles — the G-Class — is facing serious turbulence. Despite a strong brand legacy and cutting-edge EQ technology, the all-electric G580 has failed to capture the interest of consumers, according to a new report by German newspaper Handelsblatt. With only 1,450 units sold since its launch nearly a year ago, the electric G-Class is now being labeled a commercial failure by insiders.
“The car is sitting like lead at dealers,” an anonymous Mercedes executive told Handelsblatt. “It’s a complete flop.” Another manager described it bluntly: “It’s a niche model; the sales volume is very low.”
ICE G-Class Sales Shine in Contrast
While the electric variant struggles, its internal combustion engine (ICE) counterparts continue to thrive. Mercedes-Benz recorded a record-breaking quarter in Q4 2024 and followed it up with an 18% year-over-year increase in Q1 2025 for the G-Class lineup, driven almost entirely by traditional gas and diesel variants. By April 2025, the ICE G-Class had sold approximately 9,700 units — almost seven times more than the electric model.
In a statement to the media, Markus Nast, Manager of Global Communication for Mercedes-Benz Compact and Midsize Cars, reaffirmed the company’s dual-drivetrain strategy: “Mercedes-Benz is prepared for all market scenarios… Our customers decide what suits them best. This applies also for the G-Class.”
Why the EV G-Class Misses the Mark
Several factors contribute to the G580’s underwhelming performance. Price remains a major hurdle. The electric G is substantially more expensive than its six- or eight-cylinder siblings. Practicality is another sore point: the EV version lacks a towbar and offers a payload capacity of just 415 kg — a sharp contrast to the go-anywhere utility of its combustion predecessors.
Weight and range further complicate matters. Tipping the scales at 3,085 kg (6,746 lbs in the U.S.), the G580 is burdened with a reduced driving range — just 239 miles on the EPA cycle, far below its WLTP-rated 294 miles.
For loyalists of the G-Class — often drawn by the SUV’s ruggedness and performance — the electric iteration appears to fall short on too many fronts. As one Mercedes executive admitted candidly: “People want a real G-Class – with six or eight cylinders.”
Ripple Effects: The Future of the “Little G” in Question
The electric G-Class’s market flop is prompting a reassessment of Mercedes-Benz’s future SUV plans — particularly the upcoming “Little G,” a downsized version originally planned as an EV-only offering. Sources within Mercedes now suggest that internal combustion versions are under serious consideration. An ICE variant is being “examined,” and R&D costs are reported to be “manageable,” according to one engineer quoted by Handelsblatt.
The Little G is still expected to launch as an EV by 2027, but mounting pressure from consumer preferences and dealer feedback could see a hybrid or combustion-engine option follow shortly after.
Conclusion: A Lesson in Brand vs. Utility
The electric G-Class saga highlights a growing challenge for luxury automakers: brand power alone cannot override the practical and emotional expectations customers have for legacy models. For Mercedes-Benz, the road ahead may involve recalibrating its electrification strategy — blending innovation with realism — especially when dealing with legends like the G-Wagen.
