Mercedes’ upcoming baby-G was supposed to be the cute, chunky electric-only gateway into G-Class ownership. But the automotive market is changing fast, and so are Benz’s plans, as it reacts to cooling demand for EVs in some markets, especially for its own electric cars. As a result, the boxy SUV will now come with hybrid power.

More: Mercedes Wants This Baby G-Wagen To Win Buyers The Big One Never Could

Internally nicknamed Little G, Autocar reports, the compact, GLB-sized, two-row off-roader is due in 2027 and will still be available as a pure EV. But a companion hybrid model is now in development, using the turbocharged four-cylinder from the latest Mercedes-Benz CLA sedan.

The change speaks to a wider reset inside Mercedes. The company has stepped back from its earlier EV-only plans, with CEO Ola Källenius confirming it will keep selling combustion models well into the 2030s to stay flexible across different markets. Tepid demand for the electric G-Class has, by most accounts, helped concentrate minds.

Read: Mercedes’ Electric G Flops So Hard It Could Change What Comes Next

The hybridized 1.5-liter unit is designed by Mercedes and built by Horse Powertrain in China, a joint venture involving Geely and Renault. Exactly how much kick it will deliver in the Little G is unknown, but the new CLA 220 hybrid makes 208 hp (211 PS) and 280 lb-ft (380 Nm) of torque, and gets to 62 mph (100 kmh) in 7.1 seconds.

In the CLA, the engine is paired with a gearbox-mounted electric motor that allows short periods of engine-off driving.

450-mile Range

Prefer your G a little more refined? The EV variant will reportedly come standard with two motors and all-wheel drive to preserve off-road credibility, Autocar says.

Also: Mercedes’ Smallest SUV Points To A Different Kind Of Compact Future

An 85 kWh NMC battery is tipped to deliver close to 450 miles (724 km) of WLTP range, which would be seriously impressive for something shaped like a luxury brick – it’s not far short of the CLA 350 sedan’s 418-479 miles (672-771 km) figures. The full-size electric G580 with EQ technology, you might recall, is only rated for 280 WLTP miles (450 km).

Regardless of powertrain, the Little G will be sold exclusively with four-wheel drive, and both versions are tipped to feature advanced torque vectoring capable of distributing drive to individual wheels to mirror the off-road ability of the larger G-Class.

Slab Sides

Where the baby G does follow its big brother’s lead, though, is in military-chic charm. Unofficial renders from Nikita Chuyko for Kolesa give us a credible idea of what the finished SUV could look like, showing round headlights, upright glass, three big side windows and a tailgate-mounted spare.

It looks like someone left a G-Class in the dryer too long, and the good news is the slow-selling G580 EV’s $163k price should also shrink, hopefully by around 50 percent.

Unlike many compact crossovers pretending to be rugged, the Little G is said to ride on a bespoke ladder-frame platform rather than sharing underpinnings with Mercedes’ electric GLC or C-Class.

That should help it take on the incoming Land Rover Defender Sport, the Little G’s most natural rival, though that gets a unibody structure. We can’t wait to see them duke it out in the dirt next year.

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Sales of the Mercedes-Benz G-Class surged 23 percent last year to a record 49,700 vehicles. Not bad for a machine that still drives like it could climb a mountain on the school run. Now, those who can’t get enough of the G-Wagen will soon have another compelling, albeit smaller, option.

Read: Mercedes Wants This Baby G-Wagen To Win Buyers The Big One Never Could

The so-called ‘Little G’ is on the way, promising all the boxy attitude of the full-size model in a tighter, more affordable package. Positioned beneath the full-size model, the Little G marks Mercedes’ first serious attempt to stretch the G-Class name beyond a single model line.

A Compact G Takes Shape

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Also known as the mini G and baby G, this new addition to the Mercedes-Benz line-up should have enthusiasts paying close attention. It’s expected to rival the smaller Defender currently in development at Jaguar Land Rover. For now, it’s confirmed to launch as an all-electric model, while a combustion-powered version remains possible in the future.

The latest round of spyshots of the Little G shows the model testing in the depths of the European winter. While this prototype is still under heavy camouflage and some body cladding, there’s no hiding the overall shape. It looks just like a G-Class should, just scaled to about 70 percent and softened slightly around the edges.

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Found at the front are the circular headlights you’d expect, with outer rings that serve as the turn signals. It also has blocky front quarter panels and a remarkably flat hood. This particular prototype can also be seen on a set of mismatched wheels and with a pair of roof rails. Although future powertrain options have not been detailed, this prototype is clearly an EV, as evidenced by the lack of exhaust.

Like the larger G 580 with EQ Technology, the test cars appear to retain signature details such as a side-hinged rear door and an external spare wheel cover. On the electric version, that rear-mounted housing is expected to double as storage for charging cables, echoing the setup already offered on the full-size EV.

Bespoke Bones Beneath The Boxy Body

Underpinning the new model will be a bespoke chassis. According to the former chief technology officer of Mercedes, Markus Schäfer, the Little G will have a “miniature ladder-frame chassis,” adding that it will have similar qualities “when it comes to suspension and wheel size,” to the larger model.

EV Rollout Plan

Mercedes is set to launch the baby G as a fully electric SUV. Exact battery sizes and motor outputs are still under wraps, but expect it to borrow heavily from the tech already rolling out in Merc’s newer EVs, including the GLA and GLC electric models.

What it won’t get, according to Schäfer, is a range-extender setup. Smaller and mid-size Mercedes models are steering clear of that halfway-house solution, which means the Little G should stick with proper, full battery-electric hardware.

As for combustion power, nothing is confirmed. Mercedes hasn’t shut the door on it, but it hasn’t opened it either. If an ICE version does materialize, it’ll likely depend on the market. For now, the company is keeping its options open.

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Mercedes held their capital markets day presentation yesterday and announced plans to stage seven world premieres in the next three months. That’s an impressive number, especially considering the company has already introduced the facelifted S-Class and GLC 53.

The automaker didn’t delve into many specifics, but confirmed the new Mercedes-Maybach S-Class debuts in March. The company added the AMG GT 4-Door arrives later this year, while the SUV variant follows in 2027. That year will also see the unveiling of the G-Class Cabriolet.

More: New Mercedes G-Class Cabrio Teased As Testing Begins

While details are light, a slide suggested Mercedes will introduce 16 vehicles this year. Six of them will be fully electric, while the others will have internal combustion engines.

Many of these will be “Top-End” vehicles, which implies we can expect a number of new S-Class variants including the aforementioned Maybach. Some of the others are presumably AMG versions.

As for the Top-End EVs, spy photographers have snapped a facelifted EQS on multiple occasions. It’s expected to feature starry lighting units, a new 800 volt electrical architecture, and an upgraded powertrain. The latter could combine an improved battery with more efficient motors.

2026 will also see the introduction of five Core ICE-powered vehicles and three EVs. One of the latter appears to be the new GLC EQ L for China, which was mentioned in one of the presentations.

On the Entry side of things, there will be a new ICE and EV model. It will join the CLA and GLB, suggesting this could be the redesigned GLA.

2027 will see the introduction of 14 models, three of which will be fully electric. A vast majority of these will become part of the brand’s Core family, while some of the Top-End models could be the facelifted SL.

Mercedes also mentioned a new long-wheelbase GLE for China, which will presumably be based on the facelifted crossover. However, it’s unclear when either model will arrive.

Financials

Fun stuff aside, Mercedes announced adjusted earnings before interest and taxes fell from €13.7 ($16.3) billion in 2024 to €8.2 ($9.7) billion last year. The company blamed the drop on challenges in China, tariffs, and foreign exchange headwinds. On the bright side, the company reduced research and development costs related to future architectures and technologies.

Investors probably won’t like the news, nor will they be thrilled by the proposed dividend of €3.50 ($4.15) per share. That’s significantly less than last year’s payout of €4.30 ($5.10).

H/T to Motor1

Mercedes-Benz’s decision to offer an all-electric version of the G-Class hasn’t come without controversy. After all, one of the most iconic and traditionally rugged off-roaders can now glide along in complete silence.

Still, fresh off a strong 2025 for the G-Wagen lineup in America, Mercedes is moving ahead with its electrification strategy, now aiming to boost interest in the G580 with EQ Technology.

Read: Mercedes’ Electric G Flops So Hard It Could Change What Comes Next

The electric G-Class is currently offered with a $10,000 Incentive Bonus, now available whether you lease or buy the vehicle outright. Previously, this discount was capped at $5,000 and applied only to lease agreements, according to Cars Direct.

Whether that’s enough to sway potential buyers is another matter entirely.

The G580 starts at $164,550 including destination. However, as is often the case, finding one at base MSRP is nearly impossible. A quick search on Cars.com turned up 224 listings, with only a single example priced at MSRP. Most hovered between $180,000 and $190,000.

Even so, at base price, a $10,000 discount, while not insignificant, doesn’t sound like it will do much to tip the scales. It amounts to roughly 6 percent off, and for typical G-Class buyers, that might equate to a minor financial blip, not a reason to commit.

Sales Flop

Mercedes recently confirmed it delivered 49,700 G-Class vehicles globally last year, a 23 percent jump over the previous year and a new high-water mark for the model. What it didn’t share is how many of those were the electric G580 and how many still carried internal combustion.

However, reports from early last year described the G580 as a sales “flop,” noting that just 1,450 examples had been sold in Europe as of April 2025, and only 58 in China. It was also claimed that Mercedes had failed to sell a single example in the US, though that was never officially confirmed.