Dealers Pressured Mercedes To Put Gas Engines In The Baby G-Class

The Breakdown

• Mercedes had planned to sell the smaller G-Class exclusively as an EV.
• Dealers in the United States insisted it should have gas engines as well.
• Uneven EV adoption was also a contributing factor.

With nearly 50,000 units sold in 2025, the venerable G-Class had its best year since the reputable off-roader came out in the late 1970s. Mercedes is now preparing to capitalize on the Geländewagen’s commercial success with a so-called “Little G” designed to capture the essence of its bigger brother in a more compact package and at a lower price point.

It’s been a long time coming. The German luxury brand first teased the model nearly three years ago. More recently, a camouflaged prototype was spotted near the Nürburgring looking exactly as you’d expect: like a 75-percent-scale version of the full-fat G. While the test vehicle was purely electric, Mercedes has now confirmed there will also be a combustion engine under the hood.

The company initially planned to sell the boxy SUV exclusively as an EV but changed course for a couple of reasons. When dealers in the United States got a sneak preview of the smaller G-Class, they asked whether ICE versions could also be offered. U.S. retailers ultimately played an active role in convincing Mercedes to add gas engines to the lineup.

Mercedes Is Giving Dealers What They Want

Speaking to Automotive News, Mercedes-AMG CEO Michael Schiebe confirmed dealers in North America were a determining factor in the decision to develop a combustion-engine version:

'The clear feedback from our U.S. dealers, which we from time to time also asked, was we need an ICE version. We said ‘Yes, Ok. Let’s put an ICE version in there.’ It needs to have enough power, and it will definitely happen.'

However, there’s more to the story. Mercedes realized uneven EV adoption could make the baby G-Class less appealing in parts of the world where charging infrastructure remains underdeveloped. For prospective customers concerned about range anxiety, the gas-powered model will eliminate worries about running out of juice.

While Mercedes has refrained from going into specifics about the downsized G, the company’s head honcho has said it will be a “completely new development.” That statement suggests it won’t use the existing G-Class architecture, nor will it be based on the new CLA.

Photos by: Mercedes-Benz

Photos by: Mercedes-Benz

It Will Be A Proper G-Class

Former Chief Technology Officer (CTO) Markus Schäfer said it would be “as authentic as possible,” leading us to believe it’ll feature a ladder-frame setup with genuine off-road capability. Rumor has it the new G-Class variant will measure around 173.2 inches (4.4 meters) long, while the prototype also reveals it will retain a rear-mounted spare wheel.

The smaller G-Class is expected to go on sale sometime next year, although it remains unclear whether the gas model will be available from day one. Since the ICE version seems to be an afterthought, Mercedes could launch the EV first and add the combustion-powered derivative later.

Small Mercedes G-Class teaser (right)

Photo by: Mercedes-Benz

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Motor1's Take: Mercedes made the right move by adapting the petite G-Class to support combustion engines as well. The ICE version will presumably cost less and likely enjoy broader global appeal than the EV. Demand for the latter could be limited by underdeveloped charging infrastructure, whereas its gas-powered sibling won’t face the same challenge.

Given the huge success of the full-size G-Class, its little brother is shaping up to become another money-printing machine for the three-pointed star. Now that we know Mercedes also plans to offer an ICE version, we wouldn’t be surprised if it eventually outsells its larger counterpart.

A Third G-Class Is On The Way:

The New Mercedes G-Class Cabriolet Is Almost Here

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