The all-electric Mercedes G-Class SUV had all the makings of a headline-grabbing icon: crawl assist, deep-water fording, and even Rivian-style tank turns. But the only thing it’s been crawling toward is commercial disappointment. Sales have been dismal.
That’s not unique to Mercedes. Porsche is scaling back electric vehicle-related plans. Ferrari is delaying its second electric model until 2028. Audi’s Q8 e-tron has quietly exited the stage after its Belgian production facility shuttered in February due to weak demand.
Yet global EV sales are booming. So why are premium electric vehicles, especially those from legacy automakers, underperforming?
The Battery-Powered Paradox Of Luxury
“EVs aren’t just ICE cars with batteries,” says Peter Wells, Director of the Centre for Automotive Industry Research at Cardiff University. And that’s especially true for premium models. Luxury EVs need massive battery packs to match the performance expectations set by their gas counterparts, and that inflates prices dramatically.
The electric Mercedes G580 is priced at USD 162,000, USD 14,000 more than its ICE sibling. Range? Just 239 miles, compared to the gas G-Wagen’s 500. Despite sharing the iconic boxy design, most buyers aren’t biting. According to Handelsblatt, Mercedes sold only 1,450 electric G-Class units in Europe through April, while gas versions hit 9,700. An internal source allegedly called the G580 a “complete flop.”
The brand’s official stance is more measured. “Mercedes-Benz is prepared for all market scenarios,” a spokesperson told Handelsblatt, reiterating that the company will offer electric and high-tech combustion options into the 2030s.
However, consumer choices so far speak volumes. In the battle between modern tech and familiar power, the latter still wins, especially when the electric version adds little more than synthetic engine noise and a higher price tag.
Porsche, Audi, Ferrari And The Electric Retreat
Across the board, high-end EVs aren’t hitting targets. Porsche slashed its Taycan production after a 49 per cent year-on-year sales drop. Audi’s electric SUV has been discontinued. Bentley’s debut EV is delayed. Ferrari’s second electric model is pushed to 2028 before the first has even launched.
Even used EVs in this segment are suffering from brutal depreciation. A three-year-old Porsche Taycan can now be found for under USD 50,000 in the United States, down from over USD 100,000 new. Some dealers are reportedly refusing to accept Taycans in trade-ins.
It’s a worrying sign for automakers who built their business models around scarcity and prestige.
The global EV story is far from bleak, just skewed. According to the International Energy Agency, over 20 million electric vehicles are expected to be sold in 2025. That’s more than one in four new cars globally. By 2030, that share could exceed 40 per cent.
But growth is coming from smaller, cheaper electric vehicles, especially in China, where nearly half of all new vehicles sold in 2024 were electric. Asia and Latin America are also surging, with over 60 per cent EV sales growth last year. China alone accounts for over 70 per cent of global EV production and shipped 1.25 million electric cars overseas in 2024.
In contrast, the EU’s EV share dropped to 13.6 per cent in 2024, in part due to the end of government subsidies.
Lessons From China And The USD 25,000 Playbook
What China has figured out, and legacy automakers haven’t, is that electric vehicle adoption won’t be driven by gimmicks. It will be driven by price.
BYD and other Chinese automakers are flooding markets with sub-USD 25,000 models packed with the same core tech found in high-end electric vehicles. And that’s the heart of the issue. In an EV, paying triple doesn’t always get you triple the value.
“The same tech is basically in all electric vehicles. For the first time, spending more doesn’t guarantee a better product,” says Dale Harrow, Chair of the Intelligent Mobility Design Centre at the Royal College of Art.
This changes everything for brands like Jaguar, Bentley, and Porsche that once relied on top-down innovation, launching flagship models and letting technology trickle down. That model doesn’t work when the value proposition is flattened and commoditised.
The Way Forward
To make EVs truly mainstream, automakers must shift from building boutique electric marvels to producing affordable, mass-market vehicles. Think less Cybertruck, more Model T. That’s what created the gas station boom a century ago, and the same strategy could ignite the electric vehicle infrastructure of tomorrow.
Legacy brands can’t afford to chase prestige at the cost of volume. High-end EVs may still have a place, but they are no longer the centrepiece of the electrified future. That future belongs to the USD 25,000 electric commuter, not the USD 160,000 trail warrior.
If the last two years have taught us anything, it’s this: mass adoption doesn’t begin at the top. It starts at the ground level. And those who fail to pivot may soon find themselves stuck in neutral.