Weak demand for Mercedes G580 EV spurs plans for smaller G-Class with hybrid powertrain

Mercedes-Benz's ambitious entrance into the all-electric luxury SUV market with the G580 EQ evidently seems to be off to a rocky start. Since its April 2024 introduction, the all-electric G-Class has raised questions internally in the brand for sub par sales that have forced it to re-consider the futures of its electric off-roaders.

Sales disappointment across regions

As per a recent Handelsblatt report, top Mercedes officials have lashed out at the sales of the G580 as a "complete flop" and said that the model "sits like lead in dealers' showrooms."

Since its launch, the G580 has sold just 1,450 units in Europe and a paltry 58 units in China, one of the most important EV markets for Mercedes. The situation isn't much better in Australia either, where just 156 G-Class units—including internal combustion versions—were sold until the end of May 2025. That’s less than 2 per cent of Mercedes-Benz’s total Australian sales and a 20.8 per cent drop compared to 2024.

Mercedes rethinks its EV SUV strategy

In response to this slow traction, Mercedes-Benz is now exploring the development of a smaller, more versatile G-Class model, internally referred to as the ‘Little G’. Originally conceived as an EV-only vehicle, the new model will feature both electric and petrol-hybrid options for maximum flexibility across markets.

This possible change is aided by the Mercedes Modular Architecture (MMA), which forms the basis for the next-generation CLA lineup. This platform enables smoother integration of multiple powertrain configurations, in contrast to the tailored EV platforms of the EQE and EQS—both of which have also been poorly selling.

Also watch: Mercedes G 580 EQ launched in India at ₹3 crore. Claimed range of around 420 kms. #shorts

The lukewarm reception to the G580 reminds us of the challenges that luxury players face while they transition towards electric mobility. For Mercedes-Benz, it's a blunt reminder that customer preference is hankering for diversity and versatility, but not full EV commitment as of yet. With the 'Little G' likely to have hybrid and electric versions, the company appears to be returning to reality checks—where performance, price, and utility are all relevant.

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