Mercedes-Benz Revises Strategy for Upcoming Compact G-Class

Daily Car

24/02/2026

Mercedes-Benz is adjusting its powertrain strategy for the highly anticipated compact G-Class, often referred to as the 'Little G' or 'Baby G'. Initially announced as a fully electric vehicle, the company will now also offer a hybrid version in response to shifting market demand for electric vehicles. The new model is expected to launch in 2027.

Powertrain Diversification

The decision reflects a broader strategic pivot at Mercedes-Benz, which now plans to continue selling combustion-engine models into the 2030s. The hybrid system for the compact G-Class will reportedly use a turbocharged 1.5-liter four-cylinder engine. This engine is a Mercedes-Benz design built by Horse Powertrain, a joint venture involving Geely and Renault. While specific output for the compact G-Class is not confirmed, the same engine in the new CLA 220 hybrid produces 208 horsepower and 280 lb-ft of torque, paired with a gearbox-mounted electric motor that allows for brief periods of electric-only driving.

Electric Variant Details

The fully electric version remains a key part of the lineup. It is expected to feature a dual-motor, all-wheel-drive configuration to maintain the G-Class family's off-road credentials. Reports suggest it will be equipped with an 85 kWh battery, targeting a WLTP range of nearly 450 miles (724 km). This range figure is notably higher than the 280-mile WLTP rating of its larger sibling, the full-size G 580 with EQ Technology, indicating significant advancements in efficiency.

Platform and Capability

Unlike many compact SUVs that use a unibody construction similar to passenger cars, the compact G-Class will be built on a dedicated ladder-frame platform. This type of chassis, where the body is mounted on a separate, rigid frame, is known for its strength and durability, making it ideal for serious off-road use. Both the hybrid and electric versions are anticipated to include advanced torque vectoring systems. This technology can distribute power to individual wheels, which helps to simulate the locking differentials found on the full-size G-Class and enhance traction on difficult terrain.

Market Positioning

Sized similarly to the Mercedes-Benz GLB, the compact G-Class will enter the market as a premium, two-row off-roader. Its design is expected to closely follow the iconic, boxy styling of the original G-Class, featuring round headlights and a tailgate-mounted spare tire. The vehicle is positioned to compete directly with models like the upcoming Land Rover Defender Sport. While official pricing has not been announced, it is projected to be significantly more accessible than the full-size G-Class.

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