Mercedes is facing a harsh market reality with its all-electric G580 with EQ Technology. Sales figures published by the German media outlet Handelsblatt suggest that the high-end electric SUV is falling well short of expectations. In stark contrast, the iconic G-Class continues to thrive with its blasting combustion engines. To make matters worse, Mercedes is also lagging in electric sales in Germany, where BMW and Audi rebound.
The electric G-Class was launched one year ago, amid high hopes that its brand heritage and rugged prestige would carry over to the EV era. And win over the high-end market. But the latter proves a sore spot for electrification, as one example after another demonstrates.
“Sitting like lead”
Data compiled by market research firms Dataforce and Marklines reveals that by the end of April 2025, just 1,450 units of the silent all-electric G580 had been sold globally. By contrast, Mercedes sold around 9,700 gasoline and diesel G-Class units over the same period, making the ICE version sell nearly seven times as many units. The G-Class is a success, and the EG Technology is a flop.
Sales performance is especially concerning in key global markets. In China, the world’s largest market for electric vehicles, Mercedes has sold just 58 electric G-Classes since its launch. South Korea saw 61 registrations, while the U.S. has yet to register a single delivery!
One senior executive, speaking to Handelsblatt, bluntly described the electric G-Class as “a complete flop,” lamenting that “the car is sitting like lead on dealership lots.”
Faulty concept?
Internally, Mercedes is attempting to maintain a public face of confidence. “Sales figures are on target,” a spokesperson reacted, while refraining from offering specific goals. However, off the record, Mercedes seems to concede that the vehicle’s concept, an EV based on the existing ICE platform, may have undermined its competitiveness.
Unlike dedicated EVs, the G580 lacks the packaging efficiency typically found in ground-up electric designs. Furthermore, the decision to retain the heavy ladder-frame chassis has resulted in a vehicle weighing over 3,000 kilograms, effectively eliminating its towing capabilities, which are legally restricted to 500 kilograms for passenger car driver’s licenses.
In addition, it seems challenging to convince wealthy buyers of battery power, as evidenced by other flops like the Cadillac Celestiq or the Faraday Future FF9.1.
The compromises made by the electric conversion of the G-Class affect both usability and efficiency. Starting at €150,000 in Europe, the electric version is also significantly more expensive than its ICE equivalents in most markets.
A notable exception is the Netherlands, where steep taxes on combustion engines have made the EV more financially attractive. But while 107 electric G-Classes were registered in the Netherlands, still 132 units, or the majority, featured a combustion engine despite their significant tax disadvantage.
EQE sales also lose traction
The disappointing performance of the electric G-Class is now forcing Mercedes to re-evaluate its upcoming “Little G”, a downsized SUV originally envisioned as an EV-only model. While the company remains officially committed to launching the compact G as an electric vehicle in 2027, internal sources suggest that a combustion engine variant is now under active consideration.
Engineering teams are reportedly exploring how to adapt the modular MMA platform, shared with the new CLA, to accommodate hybrid and ICE configurations.
Troubles rarely come singly. On top of the woes with the electric G-Class, Mercedes also fails to benefit from the upward electrification trend in its home market. In Germany, electric sales almost doubled at 20,041 units during the first four months of 2025, compared to the year before. But both the BMW i5 and Audi A6 E-tron outsold the full-electric Mercedes EQE, which was down 22 percent during the period.
