EV backlash grows as Mercedes-Benz electric G-Wagon struggles to move off dealership lots while petrol version continues to dominate globally

Electric vehicles were once the darlings of the auto industry, touted as the future of transportation.

But now, even luxury car giants like Mercedes-Benz are facing tough lessons as consumer enthusiasm cools.

One of its most iconic SUVs—the electric G-Class—is turning out to be a serious challenge to sell, despite the buzz that once surrounded its launch.

The G580 EV: A Glamorous Launch, A Disappointing Reception

When Mercedes introduced the all-electric version of its legendary G-Wagon, expectations were sky-high.

The new G580 EV, priced at a staggering £154,870, was positioned as the ultimate green alternative for wealthy drivers.

But the reality hasn’t matched the hype.

Since its launch, only about 1,450 units have found homes, while the petrol-powered G-Class sold roughly 9,700 units during the same timeframe, according to German publication Handelsblatt.

One Mercedes executive reportedly didn’t mince words, calling the EV a “complete flop” and saying it’s “sitting like lead at dealers.”

While one manager tried to brush it off as a “niche” product with “low production output,” the numbers clearly tell a different story.

Mercedes Rethinks Its EV Strategy

With sales lagging and margins shrinking, Mercedes is shifting gears.

The company has announced it will prioritize petrol and diesel models over EVs in upcoming releases, aiming to stabilize earnings in 2025.

That’s a notable pivot from earlier ambitions of going all-electric.

And the G-Wagon’s electric flop might be playing a role in even broader changes.

Plans for a smaller, electric-only “Little G” model—expected in 2027—are now being re-evaluated.

There’s growing speculation it could debut as a hybrid instead, part of a new direction where Mercedes balances EVs with combustion-powered offerings.

The Numbers Don’t Add Up for the G580

Despite its futuristic engineering, the electric G-Class comes with some significant drawbacks.

The 116kWh battery powering four electric motors delivers an impressive 579bhp, but the EV is still slower than its gas-guzzling sibling, the G63 AMG.

It takes 4.7 seconds to hit 62mph—0.4 seconds slower—and tops out at 112mph versus the AMG’s 149mph.

Its range also disappoints.

In Europe, the G580 manages just 292 miles per charge under the WLTP cycle.

That’s almost 200 miles less than Mercedes’ CLA electric saloon, which starts at just £45,000.

In the U.S., where the G-Class has long been a hit, the EPA estimates the EV version can only go 239 miles on a full charge.

Other gripes? A limited payload capacity of 415kg, a steep price tag, and no available towbar.

For many buyers, it just doesn’t offer enough to justify the premium.

G-Class: From Military Roots to Celebrity Favorite

The G-Class wasn’t always a status symbol.

Originally introduced in 1979 and developed with Austrian firm Steyr-Daimler-Puch, the G-Wagon was built as a rugged military vehicle called the “Wolf.”

But over the decades, it evolved into a luxury icon, especially among celebrities, pro athletes, and social media influencers.

Mercedes has even experimented with eccentric versions—like the six-wheeled G63 6×6 and the quirky Moncler collaboration that put a puffer coat on the SUV.

But even this storied history and star-studded appeal haven’t been enough to save the electric version from lukewarm demand.

Automakers Across the Board Are Slowing Their EV Push

Mercedes isn’t alone.

Many major car brands are taking a step back from their full-throttle EV strategies.

Volvo, for instance, recently reported a 12% drop in overall car sales in May, with EV sales down 27% year-on-year.

The Swedish automaker is now cutting 3,000 mostly white-collar jobs worldwide to cope with rising costs and dwindling EV demand.

It’s a dramatic shift for a company that once promised to go fully electric.

Alfa Romeo and Stellantis Brands Adjust Course Too

Alfa Romeo is also hitting the brakes on its electric plans.

The much-anticipated electric Stelvio SUV, originally due for production this year, has reportedly been delayed until 2026.

The brand is now considering adding a hybrid variant to better suit the current market climate.

It’s a similar story across Stellantis-owned companies.

Fiat, Citroën, and Jeep—brands that had boldly declared some models would be EV-only—are now offering hybrid versions.

The Fiat 500, the Jeep Avenger, and Citroën C4 X are all examples of this pivot.

Value Over Volume: Mercedes Holds Its Ground

Despite the setbacks, Mercedes insists its core strategy remains unchanged: focus on high-margin luxury vehicles, even if that means selling fewer cars.

The company is doubling down on that philosophy, with CFO Harald Wilhelm confirming that the “value over volume” approach is still firmly in place.

By 2027, Mercedes plans to launch 19 new combustion engine models alongside 17 battery-electric ones.

Most will fall into the upper-tier luxury segment, showing where the brand sees its future—at the top end of the market.

What Comes Next?

The lukewarm reception to electric luxury SUVs like the G580 EV shows just how complex and unpredictable the EV transition really is.

While governments and regulators may push for electric-only futures, the market still has a say—and right now, that voice is clearly favoring petrol and hybrid powertrains.

For Mercedes and other automakers, the challenge is to strike the right balance between innovation and practicality.

EVs may still be the future, but that future is arriving much more slowly than expected.