Electric G-Class Stalls: Mercedes-Benz Faces a Stark Reality Check as EV G-Wagen Flops in the Market
Mercedes-Benz’s bold foray into electrifying one of its most iconic and enduring vehicles — the legendary G-Class SUV — has hit an unexpected snag. Despite the brand’s reputation for luxury, engineering excellence, and a devoted customer base, the fully electric Mercedes-Benz G-Class, known officially as the G580 4×4² EQ, has significantly underperformed since its launch. According to a revealing report by German financial newspaper Handelsblatt, the all-electric G-Class has struggled to gain traction in the market, with sales falling far below expectations.
Since its introduction nearly a year ago, the electric G-Class has sold a mere 1,450 units globally, a figure industry insiders now regard as a commercial failure. The ambitious push to modernize and electrify the iconic off-roader seems to have collided with harsh market realities, forcing Mercedes-Benz to reconsider its electric vehicle (EV) strategy around the G-Wagen.
The Electric G-Class: A Tough Sell Despite the Brand Legacy
Mercedes-Benz has long been synonymous with luxury and performance, and the G-Class has been a standout model, adored for its blend of rugged off-road capability and high-end refinement. Traditionally powered by robust six- and eight-cylinder combustion engines, the G-Class has cultivated a fiercely loyal fanbase who value its unmistakable silhouette and muscular presence on and off-road.
The transition to an electric drivetrain with the G580 4×4² EQ was heralded as a forward-thinking step to keep the G-Class relevant in an automotive landscape rapidly shifting towards sustainability and zero-emissions vehicles. Mercedes invested heavily in its EQ electric technology platform, promising an electrified G-Class that did not sacrifice the core attributes that made the SUV legendary.
However, the reality on the ground — or rather on the showroom floors — paints a very different picture. As one anonymous Mercedes executive candidly told Handelsblatt, “The car is sitting like lead at dealers. It’s a complete flop.” Another senior manager bluntly summed up the situation: “It’s a niche model; the sales volume is very low.”
Contrast with Combustion Engine G-Class Sales: A Stark Divide
While the electric G-Class falters, its internal combustion engine (ICE) counterparts continue to enjoy robust demand. Mercedes-Benz reported a record-breaking fourth quarter in 2024 for its G-Class lineup, followed by an impressive 18% year-over-year sales increase in the first quarter of 2025. This growth was driven almost exclusively by traditional gasoline and diesel-powered G-Class variants.
To put the numbers in perspective, by April 2025, Mercedes had sold approximately 9,700 units of the ICE-powered G-Class — nearly seven times the volume of the electric G580. This stark sales disparity underscores the challenges the electric model faces in winning over the core G-Class audience, which still favors the tried-and-true combustion engines for their proven performance and practicality.
Markus Nast, Manager of Global Communication for Mercedes-Benz Compact and Midsize Cars, addressed the market performance in a public statement, emphasizing the company’s flexible approach: “Mercedes-Benz is prepared for all market scenarios… Our customers decide what suits them best. This applies also for the G-Class.”
Why the Electric G-Class Is Missing the Mark
Several critical factors have contributed to the disappointing market reception of the electric G-Class. Among the most significant issues are price, practicality, weight, and driving range — each of which dents the vehicle’s appeal to traditional G-Class buyers and newcomers alike.
1. Price: A Steep Entry Barrier
The electric G-Class carries a considerably higher price tag than its six- and eight-cylinder ICE siblings. This premium pricing places the G580 out of reach for many customers who might otherwise consider the vehicle, especially since the EV variant’s benefits do not fully compensate for the added cost. The high sticker price has been a deterrent in a market where customers expect electric vehicles to either offer comparable value or groundbreaking advantages over gasoline models.
2. Practicality Concerns: Limited Utility Compared to ICE Versions
One of the G-Class’s defining characteristics is its go-anywhere, do-anything utility. It is widely known for its rugged off-road prowess, high payload capacity, and towing capability — features that are central to its appeal.
Unfortunately, the electric G-Class falls short in this respect. The G580 lacks a towbar entirely, eliminating one of the core practical uses that many G-Class owners expect. Furthermore, its payload capacity is restricted to just 415 kilograms, a sharp decline compared to the traditional models. This limitation reduces the SUV’s versatility and functional appeal, especially for buyers who rely on their G-Class for heavy-duty tasks.
3. Weight: The Burden of Batteries
Electric vehicles often face challenges due to the added weight of battery packs. The G580 is no exception, tipping the scales at a hefty 3,085 kilograms (6,746 pounds in the U.S. market). This significant weight increase affects the vehicle’s dynamics, handling, and overall performance.
For an SUV celebrated for its nimbleness in challenging terrain, the electric version’s bulkiness undermines the very traits fans love about the G-Class. The extra mass also contributes to increased tire wear and reduced braking efficiency, which may concern potential buyers used to the ICE model’s more responsive feel.
4. Driving Range: Limited Distance Between Charges
Driving range remains a sticking point for many electric vehicles, and the G580 is no exception. Although rated at 294 miles under the WLTP (Worldwide Harmonised Light Vehicle Test Procedure) cycle — a European standard — the EPA (Environmental Protection Agency) rating used in the U.S. paints a less favorable picture with just 239 miles per full charge.
Given the G-Class’s rugged, adventurous image, where owners expect to tackle long off-road journeys and remote terrain, this range can feel inadequate. Range anxiety, combined with the vehicle’s slow charging times, reduces confidence in the EV variant’s usability for extended trips, further limiting its appeal.
5. Emotional and Cultural Factors: Tradition vs. Innovation
Beyond technical and practical concerns, the electric G-Class faces an emotional barrier. For many loyalists and enthusiasts, the G-Class is more than a vehicle — it’s a symbol of rugged luxury, mechanical mastery, and a lifestyle. The throaty growl of a powerful V8 engine is part of the identity.
As one Mercedes executive remarked with blunt honesty: “People want a real G-Class — with six or eight cylinders.” This highlights a broader challenge luxury automakers face: electrification must not just be a technological upgrade but an emotional one, preserving the soul of iconic models.
The Future of the “Little G”: Reconsidering the Electric-Only Approach
The commercial struggles of the full-sized electric G-Class have ripple effects across Mercedes-Benz’s broader SUV electrification plans, particularly the development of the so-called “Little G.” This upcoming smaller G-Class variant was initially slated to be offered exclusively as an electric vehicle, reflecting the company’s ambitions to accelerate its EV lineup.
However, recent reports indicate that Mercedes-Benz is now rethinking this strategy. Sources within the automaker suggest that internal combustion engine versions of the Little G are under serious consideration, alongside its electric variant. A key engineer involved in the project told Handelsblatt that research and development costs for the combustion version are “manageable,” and an ICE option is being actively “examined.”
The Little G is still expected to debut as an electric SUV by 2027, but mounting pressure from dealers and consumers could lead Mercedes-Benz to introduce hybrid or pure combustion versions shortly after launch. This pragmatic shift underscores the difficulties in pushing EV-only models within traditionally combustion-loving market segments.
Lessons Learned: Balancing Innovation with Customer Expectations
The electric G-Class saga offers valuable insights for Mercedes-Benz and other luxury automakers navigating the transition from combustion to electrification. It illustrates the limits of brand equity when confronted with tangible shortcomings in utility, price, and emotional resonance.
Brand Power vs. Practical Utility
No matter how strong the heritage, customers will prioritize practical utility and real-world usability. The G-Class is a case in point where the allure of a legacy model cannot fully compensate for compromises in performance and functionality.
The Importance of Listening to Customers
Mercedes’ dual-drivetrain approach — maintaining both combustion and electric G-Class versions — acknowledges that customer preferences vary widely. The company’s willingness to reconsider plans for an ICE Little G variant signals a more flexible and customer-centric approach.
The Challenge of Electrifying Iconic Models
Luxury brands must strike a delicate balance between pushing technological boundaries and respecting the identity of beloved vehicles. EV versions must deliver not only on emissions but also preserve the character and experience that customers expect.
Conclusion: The Road Ahead for Mercedes-Benz’s G-Class Electrification
Mercedes-Benz’s experience with the electric G-Class highlights a sobering reality check in the automotive industry’s electrification journey. While EVs represent the future, they must align with consumer needs, brand values, and practical realities to succeed — especially when reinventing legendary vehicles like the G-Wagen.
The current market response suggests that the path forward for Mercedes-Benz involves a more nuanced electrification strategy, combining innovation with tradition. Offering a mix of combustion, hybrid, and electric options may be the best way to satisfy a diverse customer base and preserve the iconic status of the G-Class.
As the industry continues to evolve, the lessons from the electric G-Class’s commercial struggles will resonate widely — reminding automakers that electrification is not just about technology but about meeting the complex expectations of passionate, discerning customers.