With the G580 EQ, Mercedes-Benz seems to be making a bold entry into the all-electric luxury SUV industry, albeit with a shaky beginning. The all-electric G-Class, which was introduced in April 2024, has prompted internal debate at the company about poor sales, leading to a reconsideration of the future of its electric off-road vehicles.

Disappointing sales in all areas

According to a recent Handelsblatt piece, the sales of the G580 have been described by senior Mercedes executives as a "complete flop" and as "sitting like lead in dealers' showrooms."

The G580 has only sold 1,450 units in Europe and a measly 58 units in China, one of Mercedes' key EV markets, since it was released. Australia is not in a far better position either, with only 156 G-Class units, including those powered by internal combustion, sold there through the end of May 2025. This represents a 20.8% decline from 2024 and less than 2% of all Mercedes-Benz sales in Australia.

Mercedes reconsiders its approach to electric SUVs.

Because of this slow traction, Mercedes-Benz is currently investigating the possibility of creating a smaller, more adaptable G-Class model, which is known internally as the "Little G." Initially intended to be an exclusively electric vehicle, the new model will now have both electric and gasoline hybrid versions in order to provide the greatest possible market versatility.

The Mercedes Modular Architecture (MMA), which serves as the foundation for the upcoming generation of CLA models, facilitates this potential shift. Unlike the customized EV platforms of the EQE and EQS, which have both performed poorly in the market, this one allows for a more seamless integration of various powertrain setups.

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.

Read Also: While EVs Dominate Headlines, CNG Cars Quietly Take Off

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