The Mercedes G-Class electric SUV might have been hyped for its off-road prowess and flashy features like tank turns, but reality bites: sales are dismal. And Mercedes isn’t alone. Ferrari is delaying its next EV due to lackluster demand, and Porsche, despite its pedigree, is slashing EV plans because of tepid sales for its Taycan and Macan models. If the legacy giants can’t make it work in the EV space, what’s really going on?
Audi’s pulled the plug on its Q8 E-tron, blaming the global dip in demand for luxury EVs. Yet, EV sales as a whole are up. So what’s the disconnect? Here’s the thing: These luxury EVs are priced into the stratosphere, demanding fat wallets for batteries that match their gas-guzzling counterparts. The electric G-Wagen, for instance, will drain $162,000 from your bank account, with Range Rover’s EV set to go even higher. The days of commanding premium prices are waning fast.
Mercedes moved a paltry 1,450 G-Class G580s in Europe compared to 9,700 of the cheaper combustion models. It’s a 45-year-old design, shiny new updates or not, and with potential tariffs on European imports, don’t expect the U.S. to bail them out. An insider’s calling the G580 a “complete flop.” Mercedes insists they’re ready for any market scenario, but the market’s leaning towards cheaper, traditional engines.
Customers aren’t buying the electric roar when they can have the real V8 growl for less. Why pay an extra $14,000 for a vehicle that looks nearly identical to its gas counterpart? Especially when the electric version can only manage a 239-mile range compared to the gas version’s 500 miles.
Most of these G-Wagens, electric or not, are more about city cruising in style than tackling the wilderness. For those truly off-road inclined, the Rivian R1S offers more range and power at a lower price. The real problem for these automakers is that their luxury EVs aren’t living up to the hype, and they’re losing to smaller, more affordable models that have mass appeal.
China’s leading the charge with affordable EVs, while Europe’s feeling the pinch after ending subsidies. The IEA predicts EV sales will top 20 million by 2025, with China dominating the market. Meanwhile, luxury brands like Porsche are backtracking on their EV plans due to poor sales, and Lamborghini’s pushing its first EV launch to 2029.
The market’s clamoring for entry-level EVs, not overpriced status symbols. Dale Harrow suggests automakers should shift focus to affordable models, much like Ford’s Model T strategy. China’s already figured this out, with nearly 40% of their EVs priced under $25,000. Real adoption and charging networks will grow from this affordability, not gimmicks like tank-turns. The Model T revolutionized the gas station; why not do the same for EVs?
