Mercedes' $150,000 Electric G-Class Faces Dismal Market Reception

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2025 Mercedes-Benz G580 with EQ Technology, a full electricity model of Mercedes-Benz's symbol SUV, promised an innovative change to the brand when the debut in early 2024. The vehicle has a strong performance that shows a total of 579 horsepower and 859LB-FT torque with four electric motors while maintaining a familiar angular appearance. 

These impressive specifications and solid styling seemed to be a recipe for success. The starting price in the US market starts at $161,500, including $1,150, and includes a variety of luxury standards.

But a new report by German journalist Handelsblatt has shown that the electric G-class is failing. The sales volume is so low that Mercedes-Benz is reconsidering the strategy of this SUV model in the future. According to the German report, as of April 2025, about 1,450 in Europe and only 58 electric G-classes were sold in China. 

To understand this gloomy context, the auto manufacturer sold 10,987 G-Class SUVs in the United States in 2024, an increase of 12 percent compared to 2023. An anonymous Mercedes executive said in a translated statement in Handelsblatt, "The vehicle is sitting like a dealer. It's completely failed." Another executive called the electric model "niche model" and admitted that the sales volume was "very low."

The exact reason for the lack of popularity of electric G-class is not clear. But you can estimate some factors. First of all, the high start price ($161,500 $1,150 destination destination fee) can limit accessibility. In addition, according to the EPA estimates, relatively limited mileage, which is only 239 miles, can cause buyers' concern. 

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Some drivers mentioned that the indoor space of the vehicle was small in actual SUVs such as cross-country skiing, paddle board, and mountain bicycle, and that the ride comfort (rugged, high center of gravity, old-fashioned spring suspension) and mobility were low. 

EV owners point out that "actual driving distance anxiety" is very realistic, and that electric cars, not Tesla, point out that it is difficult to use the Tesla charging station, and it is difficult to use the faster charging speed. These problems can be a miniature of difficulties in the electric vehicle market where legacy automakers are rapidly evolving.

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Mercedes-Benz is changing its strategy in the face of the difficulties of the electric G580. The smaller G-Class variation, which had been developed for several years, was originally planned for its original EV. However, the poor sales of the G580 are known to have changed this plan. The company is now considering whether it will also provide an internal combustion engine model that can include hybrid support. 

The vehicle seems to be able to support both ICE and EV configuration using the same platform as the company's large rear wheel drive model. This vehicle is expected to be released in 2026 or 2027, depending on the current product plan. In the rapidly changing electric vehicle market, automakers are faced with a challenge to plan new products in situations where the future changes are unknown.

Mark Phury

Mark Phury

Mark Phury is the Founder and Lead Writer, United States at Carbed.net. Before that, he sold car insurance during his college years. He graduated from the Economy and Business Administration with a Master's Degree in European Business Management.

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