Electric G-Class, Mercedes-Benz's big commercial failure
Mercedes has sold only 1,450 models of the electric version of the G-Class worldwide since its launch, calling into question the brand's electrification roadmap.
The Mercedes-Benz The electric G-Class was supposed to be the luxury SUV of the future. from the brand with the star, the ecological and sustainable conversion of a true dinosaur that has been on the market (without major aesthetic changes) since 1978. The G-Class has always been an old-school all-terrain vehicle, a tough, robust and powerful model that rivals Mercedes' main competitors such as Volvo, and is the true pride of the brand established in Stuttgart.
In 2020, Mercedes decided to present the electric version of its flagship off-roader, which was intended to conquer the luxury electric 4x4 segment while maintaining the aesthetics of the original model and its commitment to luxury. as explained by German newspaper HandelsblattIt's worth noting that in the same period, Mercedes has sold a total of 9,700 units of the same model with a gasoline combustion engine, almost seven times more than sales of the electric version, despite the brand's marketing efforts.
According to the German media, members of Mercedes' management acknowledged that the electric G-Class was "an absolute failure." The reason is that demand for these electric models has been much lower than Mercedes had anticipated: as an example, the brand sold only 58 units of the electric G-Class in the world's largest market, China, throughout 2024, and has not been able to sell a single unit of the zero-emission model to the United States.
Among the causes of the commercial failure of the 587 hp electric G-Class, the price (163,757 euros) cannot be highlighted, since it is very similar to that of the entry-level models with a 449 hp combustion engine and is almost 60,000 euros cheaper than the AMG G63 model with a V8 gasoline engine (585 hp, slightly below the power of the electric model).
Mercedes-Benz believed the electric version of the G-Class would sell better than the gasoline version, since, after all, who doesn't want a more powerful, cheaper, and more environmentally friendly model? The answer lies in the customer profile of these luxury SUVs, who have little or no interest in electric mobility, and, significantly, in the fact that they offer a real electric range of just over 350 kilometers, a differentiating factor in a model that, despite its off-road capabilities, is often used as a commuter car.
It rains on the wet
The electric G-Class is no exception within the Daimler Group, the parent company of Mercedes-Benz. Its flagship electric sedan, called the EQS, doesn't achieve the sales figures or prestige of the combustion-engine S-Class, which remains the customer favorite in this segment.
The significant financial and commercial hurdle caused by the electric G-Class and the EQS in the financial statements has forced Mercedes to reconsider its roadmap for the electrification of its range, especially with regard to SUVs and off-road models. Initially, the commercial failure of the latest electric models has led the brand to decide to reintroduce models with combustion engines into its future range in the rest of the segments. This calls into question the difficult situation of the company's CEO, Ola Källenius, whom many shareholders consider to be below the level of his predecessor, Dieter Zetsche.