Mercedes-Benz is preparing to expand one of its most recognizable vehicle families, but its upcoming smaller G-Class will not simply be a cheaper version of the legendary off-roader. Speaking at the company’s 140 Festival in Stuttgart on October 17, 2026, Mercedes-AMG chief executive Stefan Weckbach confirmed that the smaller model will target a different group of buyers from those purchasing the full-size G-Wagen. Meanwhile, development of the next-generation G-Class is already underway, with executives promising to preserve the qualities that made it famous. The announcements reveal an important balancing act for Mercedes: introducing a more accessible luxury off-roader while protecting the identity, capabilities, and exclusivity of a vehicle whose reputation has been built over nearly five decades.
The Smaller G-Class Will Target an Entirely Different Customer
Mercedes-Benz has made an important distinction between its upcoming compact G-Class and the full-size model that established the vehicle’s reputation. At a media roundtable during the company’s 140 Festival, Stefan Weckbach, who oversees Mercedes-AMG, the G-Class, and Maybach, explained that the smaller SUV will serve a different market segment. He emphasized that the new vehicle would be significantly different from its larger counterpart and would not be aimed at traditional G-Class customers. His remarks suggest Mercedes is developing the model to expand the brand’s audience rather than encourage existing owners to purchase a less expensive replacement.
The strategy could appeal to drivers who appreciate the G-Class’s distinctive styling but have little need for its size, substantial performance, or specialized off-road equipment. A smaller vehicle may also be easier to accommodate in cities, where parking and narrow streets can make a full-size luxury SUV less convenient. Mercedes has not yet defined its intended customer profile in detail or published pricing for the new model. Nevertheless, Weckbach’s comments establish a clear priority: the smaller G-Class must possess enough character to belong to the family while offering a sufficiently different ownership experience to attract new buyers.
Mercedes Is Already Developing the Next-Generation Full-Size G-Class
While the smaller G-Class moves toward production, Mercedes engineers are also working on the future of the original model. During the same Stuttgart gathering, Weckbach confirmed that development of a next-generation G-Class is underway. He emphasized that the company must modernize the vehicle without losing its distinctive character. That objective creates an unusual engineering challenge. The G-Class is expected to incorporate advancing technology, comfort, safety, and efficiency improvements, but changes that undermine its recognizable appearance or established capabilities could alienate loyal customers.
Mercedes-Benz chief executive Ola Källenius reinforced the importance of preserving qualities such as durability, driving characteristics, and long-term quality. His comments reflected lessons learned from previous attempts to modernize established performance models. However, the company has not disclosed when the next-generation G-Class will arrive, whether it will use an entirely new platform, or which engines and electric powertrains will be offered. Its development should also be distinguished from the smaller G-Class project. These are separate vehicles with different positioning, even though both will carry the G-Class identity. Their parallel development illustrates Mercedes’ intention to broaden its off-road luxury portfolio without compromising the flagship vehicle’s standing.
Nearly Five Decades of History Make the G-Class Difficult to Reinvent
The G-Class’s identity stretches back to 1979, when Mercedes-Benz introduced the original W460 as a rugged vehicle designed to operate both on paved roads and demanding terrain. Developed through cooperation between Daimler-Benz and Austria’s Steyr-Daimler-Puch, the vehicle combined a sturdy ladder-frame chassis with functional, angular bodywork. Its upright windshield, distinctive door design, prominent wheel arches, and unmistakable proportions became defining features. Production has remained centred in Graz, Austria, where longtime manufacturing partner Magna reached a milestone of 600,000 completed G-Class vehicles in August 2025.
Over time, the G-Wagen evolved from a primarily functional off-roader into a luxury vehicle associated with exclusivity and substantial performance. Yet its appearance has changed relatively little compared with most other Mercedes models. That continuity explains why the manufacturer is approaching its next generation cautiously. Modernizing the G-Class presents opportunities to improve technology, refinement, and efficiency, but removing too many familiar details could undermine what attracts buyers in the first place. For the smaller G-Class, the challenge is different: borrowing enough of that visual heritage to establish credibility without creating a vehicle that merely imitates the original.
The Little G Will Use a Purpose-Built Platform Rather Than a Smaller Version of the Existing One
Mercedes is developing dedicated underpinnings for the smaller G-Class instead of adapting an existing compact SUV platform. At the 2025 Munich motor show, then-technology chief Markus Schäfer explained that the vehicle required its own architecture to deliver the authenticity expected of a G-Class. He described the structure as a miniature ladder-frame concept, although not identical in construction to the full-size model. The engineering work involves a substantial number of unique components, including much of the bodywork. Even elements such as door handles have required special attention because the G-Class’s distinctive design does not translate easily to other Mercedes platforms.
That decision highlights how seriously the manufacturer is approaching the project’s mechanical identity. Creating a dedicated platform is generally more complex than adapting an existing vehicle, but it allows engineers to develop suspension geometry, body proportions, and structural characteristics around a specific purpose. For the Little G, that purpose includes credible performance beyond paved roads. The manufacturer has not published detailed chassis specifications, suspension travel, or ground-clearance measurements. It would therefore be premature to assume the smaller model will match the full-size G-Class in extreme terrain. Nevertheless, the dedicated engineering approach suggests Mercedes wants more than a conventional crossover wearing familiar bodywork.
Familiar Round Headlights and Boxy Proportions Will Remain
Although Mercedes intends to distinguish the smaller G-Class from its larger sibling, the new model will retain several recognizable design features. Camouflaged prototypes photographed during development reveal an upright, angular shape, a traditional three-window side profile, and a rear-mounted spare wheel. The smaller vehicle also appears considerably lower than the full-size G-Class. Autocar’s November 2025 photographs showed a prototype that appeared shorter than a nearby Mercedes EQS SUV, which measures approximately 1,718 millimetres in height. For comparison, the current standard G-Class stands approximately 1,969 millimetres tall.
Mercedes’ former design chief Gorden Wagener previously explained that the smaller vehicle would adopt a slightly sharper and more youthful interpretation of the established G-Class styling. Round headlights remain part of that approach, although their detailing and surrounding design will differ. These changes could help the vehicle appeal to customers who prefer the original’s distinctive character but want something less imposing. However, prototype appearances do not establish the final production dimensions. Manufacturers frequently conceal design details during testing, and Mercedes has not confirmed exact measurements, cargo capacity, or the interior layout. The result is expected to look unmistakably related to the G-Wagen without being visually interchangeable with it.
Gasoline and Electric Versions Are Now Part of the Plan
The smaller G-Class has undergone a significant change in its powertrain strategy. When Mercedes first discussed the project, it was widely expected to be an exclusively electric vehicle. That approach changed during development. In May 2026, then-Mercedes-AMG chief executive Michael Schiebe confirmed that the company intended to offer both combustion-engine and fully electric versions. He explained that feedback from American dealerships played an important role, with retailers arguing that a gasoline-powered alternative was necessary to appeal to customers who were not ready to switch to electric vehicles.
Industry reporting suggests the combustion model could use a small turbocharged four-cylinder engine with hybrid assistance, while the electric version may employ a dual-motor all-wheel-drive arrangement. However, Mercedes has not finalized those technical details publicly. Battery capacity, driving range, engine output, and charging performance therefore remain unconfirmed. Offering two powertrain choices could help Mercedes accommodate different driving habits and charging conditions across North America, Europe, and other markets. It would also give the company flexibility as demand for electric vehicles evolves. For prospective buyers, the important development is that the Little G is no longer expected to depend entirely on electric propulsion.
Genuine Off-Road Capability Remains Part of the Promise
Despite its different customer positioning, Mercedes does not intend to turn the smaller G-Class into a purely cosmetic off-roader. During the October 17 event, Stefan Weckbach confirmed that the Little G would offer strong off-road capability. That promise is significant because the full-size G-Class has long been defined by its ability to handle difficult terrain. The current combustion-powered model retains a ladder-frame chassis, three mechanical differential locks, and selectable low-range gearing. Mercedes lists a maximum climbing capability of a 100% grade on suitable surfaces, equivalent to a 45-degree slope, along with approximately 241 millimetres of ground clearance.
The electric G 580 with EQ Technology demonstrates another approach to maintaining those capabilities. It uses four individually controlled electric motors, a 116-kilowatt-hour battery, and specialized off-road functions, including G-TURN, which allows the vehicle to rotate on loose terrain. These are established features of the full-size electric model, not confirmed specifications for the Little G. The smaller SUV’s dedicated platform suggests Mercedes is paying attention to durability and traction, but its actual performance remains to be demonstrated. Whether it can satisfy demanding off-road enthusiasts will depend on future testing rather than styling or family resemblance alone.
The Smaller G-Class Will Be Manufactured in Hungary, Not Austria
Mercedes has confirmed that the smaller G-Class will be manufactured exclusively at its Kecskemét factory in Hungary, establishing a separate production base from the traditional G-Class facility in Graz, Austria. The decision was announced in July 2026 as part of a major expansion of the Hungarian operation. Mercedes has invested approximately €1 billion in the site under its 2022–2026 business plan, adding new bodywork and assembly halls, a paint shop, and battery assembly facilities. The factory’s footprint has expanded from approximately 200 to 440 hectares, and it employs more than 5,000 skilled workers.
The manufacturing investment is particularly relevant because Kecskemét is becoming an important centre for Mercedes’ electrified vehicle production. The plant began producing the new electric C-Class in July and is designed to accommodate different vehicle programs through flexible manufacturing systems. Locating the smaller G-Class there could help Mercedes integrate its production into a broader industrial network while maintaining the specialized manufacturing traditions associated with the full-size G-Class in Graz. However, the company has not announced production capacity specifically allocated to the smaller model. Its eventual manufacturing volumes will depend on demand, finalized product configurations, and the timing of its commercial introduction.
Mercedes’ CEO Says the Little G Could Arrive Within Two Years
The smaller G-Class has been in development since its announcement at the 2023 Munich motor show, and prospective customers now have a clearer indication of when it could arrive. During an October 2026 interview with Bloomberg, Mercedes-Benz chief executive Ola Källenius indicated that the vehicle would be introduced in less than 24 months. That places its expected arrival before October 2028. The statement is more specific than earlier comments, although it does not establish an exact launch date, model year, or timetable for customer deliveries.
Previous industry reports had pointed toward production beginning in 2027, with the electric version expected to arrive before the combustion-powered model. Those expectations remain plausible, but Mercedes has not confirmed that both powertrains will become available simultaneously. The company’s development schedule has also changed since the project was first announced, partly as its technical direction evolved. Camouflaged prototypes have appeared during testing, and executives have revealed information about the vehicle’s architecture, appearance, and intended customers. Still, essential details remain outstanding, including final dimensions, interior specifications, pricing, driving range, and market availability. Until Mercedes releases its production specifications, the most reliable conclusion is that the Little G is approaching its introduction, but several decisions affecting buyers have yet to be publicly finalized.
Record G-Class Sales Give Mercedes a Strong Reason to Expand the Family
Mercedes’ determination to broaden the G-Class range follows a particularly successful period for the original vehicle. In 2025, the manufacturer reported approximately 49,700 G-Class customer deliveries worldwide, an increase of 23% and the model’s strongest annual performance on record. Mercedes also credited the electric G-Class with attracting additional customers. The broader importance of SUVs remains evident in the company’s latest financial disclosures: sport utility vehicles accounted for approximately 56% of Mercedes-Benz passenger-car sales during the first nine months of 2026. Expanding the G-Class family therefore offers an opportunity to build on an established luxury brand rather than create an entirely unfamiliar product identity.
The pricing difference between the current flagship and the upcoming smaller model could become especially important. In the United States, the 2026 Mercedes-Benz G 550 carries a starting manufacturer’s suggested retail price of approximately US$153,900, while the AMG G 63 begins at approximately US$198,750. The smaller G-Class is expected to occupy a lower price position, but Mercedes has not announced how much it will cost. Making the distinctive G-Class design available at a lower price could attract customers who previously considered the vehicle financially or practically out of reach. Yet the manufacturer must avoid weakening the exclusivity that contributes to the full-size model’s appeal. With two separate G-Class projects advancing, Mercedes is pursuing a delicate strategy: bringing new customers into the family while ensuring its original off-road icon remains something special.
