US dealers told Mercedes they wouldn't sell an electric-only compact G-Class, and Mercedes listened. The automaker has confirmed that its upcoming smaller G-Class — widely nicknamed the "Little G" — will launch in 2027 with both a plug-in hybrid and a fully electric powertrain, scrapping a plan that had called for electric power exclusively.
Dealer feedback that changed a product plan
Mercedes-AMG CEO Michael Schiebe confirmed the shift during a May 19 roundtable, saying US dealers explicitly demanded a gasoline-powered option, per Motor1. That tracks with the broader picture: according to reports citing Handelsblatt, the G 580 EV — the full-size electric G-Class — moved roughly 1,450 units through April 2025, compared to about 9,700 units for internal-combustion engine variants over the same period. Dealers interact with buyers daily, and the sales gap apparently made the case that an EV-only compact G-Class carried real market risk in the US, per Automotive News.
Two powertrains, one nameplate
The hybrid variant is expected to use the same turbocharged 1.5-liter four-cylinder that powers the new CLA, producing 188 hp and 221 lb-ft of torque. Both versions are anticipated to come standard with all-wheel drive and torque vectoring.
The fully electric model carries an 85 kWh NMC (nickel-manganese-cobalt) battery. Mercedes quotes 724 km on the WLTP cycle — the EU range-test standard — which translates to roughly 385 miles by EPA conversion. That would put it well ahead of most compact electric SUVs currently on sale in the US if the EPA number holds up at launch.
What the US market actually gets
Pricing hasn't been confirmed, and Mercedes hasn't announced a base MSRP. Estimates point to a starting figure around $70,000, though that remains unverified. No IRA Section 30D federal tax credit eligibility has been announced; final assembly location and battery sourcing requirements would determine whether either variant qualifies for the $7,500 credit.
Production is targeted for the second half of 2027, with the electric version expected to arrive first. Whether the hybrid follows simultaneously or later hasn't been disclosed.
Schiebe noted that European demand for the electric version is expected to run considerably higher, pointing to strong CLA EV uptake there as evidence. But the decision to add a hybrid for the US reflects how quickly market realities can reshape even well-laid electrification roadmaps.