Mercedes-Benz delivered 48,632 G-Class vehicles globally during 2025, marking the highest annual sales total in the model's 46-year history. The figures, released by the company in January 2026, represent a 14.7 percent increase over 2024's previous record of 42,401 units and cap a remarkable commercial resurgence for a vehicle that seemed destined for extinction a decade ago.
The G-Wagen, as enthusiasts still call it despite Mercedes dropping the name officially years ago, began life in 1979 as a utilitarian military and agricultural vehicle. Its ladder chassis, solid axles, and boxy styling prioritised function over aesthetics. For decades, production barely exceeded 10,000 units annually, serving niche markets including European farmers, Middle Eastern sheikhs, and the Austrian army which originally commissioned the design.
The transformation into fashion statement accelerated through the 2000s and 2010s as celebrities embraced the G-Class's distinctive appearance. Kim Kardashian, Arnold Schwarzenegger, and numerous footballers adopted the vehicle, generating publicity that traditional marketing couldn't match. Mercedes recognised the opportunity, gradually repositioning the G-Class from agricultural tool to luxury statement piece.
The 2018 redesign proved pivotal. Mercedes replaced the ancient W463 platform with the updated W464, retaining the iconic boxy silhouette while introducing modern chassis technology, improved interior quality, and powerful AMG variants. Base prices started around £100,000 in Britain, with AMG G63 models exceeding £170,000. Demand exploded.
"The G-Class occupies unique territory," explained Ola Källenius, Mercedes-Benz CEO, in the company's annual results presentation. "It combines off-road capability most owners never use with luxury interiors and performance that rivals sports cars. The contradiction is precisely the appeal. Buyers want vehicles that stand apart from ubiquitous crossovers, and nothing says individuality like a G-Class."
Regional breakdowns reveal fascinating patterns. China accounted for 11,847 deliveries, becoming the G-Class's largest single market for the first time. The United States contributed 10,932 units, while Germany managed 4,621. Middle Eastern markets, historically crucial for G-Class sales, delivered 7,234 vehicles across various countries. The remaining 14,000 units spread across other global markets.
China's emergence as the leading market reflects the country's growing wealthy class seeking status symbols that differentiate from mainstream luxury vehicles. According to Chinese automotive analysts cited by Automotive News, the G-Class appeals particularly to successful entrepreneurs wanting vehicles that signal achievement without the ostentation of exotic supercars.
American sales benefited from celebrity endorsements and social media visibility. Instagram hashtag analysis by marketing firm Brandwatch found that the G-Class generated 2.3 million posts during 2025, far exceeding competitors like the Range Rover at 1.1 million posts or the Cadillac Escalade at 847,000. This organic marketing translates directly to showroom traffic and sales.
The AMG G63 variant dominates sales composition, representing approximately 60 percent of total deliveries according to company sources. Its 577 horsepower twin-turbo V8 delivers 0-60 mph acceleration in 4.5 seconds, absurd performance for a vehicle weighing 2,485 kilograms and possessing the aerodynamics of a garden shed. Yet buyers queue for the combination of brutal acceleration and military-inspired styling.
Mercedes expanded production capacity at the Magna Steyr facility in Graz, Austria, where G-Class assembly has occurred since 1979. The factory added a second shift in 2024, increasing annual capacity from roughly 40,000 units to 55,000. This expansion signals Mercedes's confidence in sustained demand despite the G-Class's premium pricing and relatively low fuel economy.
Profitability per unit makes the G-Class extraordinarily valuable to Mercedes despite modest volumes compared to models like the C-Class or GLE. Industry analysts estimate Mercedes achieves gross margins exceeding 40 percent on G-Class sales, compared to typical automotive margins of 15 to 20 percent. The combination of premium pricing, strong residual values, and buyer willingness to specify expensive options creates exceptional financial returns.
Customisation through Mercedes's Manufaktur personalisation programme generates additional revenue. Buyers can specify unique paint colours, bespoke interior materials, and exclusive trim details, often adding £30,000 or more to base prices. According to Mercedes data, approximately 73 percent of G-Class buyers selected at least some Manufaktur options during 2025.
The model's success defies broader automotive trends toward electrification and efficiency. The G-Class returns approximately 18 mpg in combined driving according to EPA estimates, far below modern standards. Its frontal area and upright stance create aerodynamic drag that no amount of engineering can fully overcome. Yet buyers seemingly don't care, valuing character and presence over fuel economy.
Mercedes announced an electric G-Class variant arriving in 2024, designated EQG, featuring four electric motors and removable battery packs for extended range. Initial market response proved lukewarm, with the EQG accounting for fewer than 2,000 of 2025's total G-Class deliveries. Buyers apparently prefer traditional combustion power, at least for now.
Competition has intensified as other manufacturers recognise the luxury off-roader segment's profitability. Land Rover's Defender, relaunched in 2020 with modern underpinnings, targets similar buyers. Ineos launched the Grenadier, a spiritual successor to the old Defender, in 2022. Yet neither has dented G-Class momentum, suggesting the Mercedes benefits from established cachet competitors struggle to replicate.
The used market reflects new car demand, with G-Class values holding remarkably firm. According to CAP HPI residual value data, three-year-old G63 models retain approximately 72 percent of original value, exceptional for any vehicle and particularly impressive for one with high running costs and limited practicality. This residual strength reduces effective ownership costs for buyers who change vehicles regularly.
Critics question the G-Class's relevance in an era prioritising efficiency and environmental responsibility. Its agricultural origins and genuine off-road capability seem wasted on vehicles primarily traversing urban roads and motorways. The sight of G-Class models idling in Chelsea or Beverly Hills, never experiencing conditions harder than speed bumps, generates eye-rolling from environmentalists and automotive purists alike.
Mercedes counters that buyers choose the G-Class precisely because it doesn't conform to rational transportation logic. The company positions it as an emotional purchase, a vehicle transcending mere mobility to become a statement about its owner's success and individuality. Whether this justifies the environmental impact remains debatable, but commercially the strategy succeeds brilliantly.
The 2026 model year brings minor updates including revised infotainment software and new exterior colour options. Mercedes hasn't announced significant mechanical changes, suggesting confidence that the current formula requires no fundamental revision. When products sell at record levels and command premium pricing, manufacturers wisely avoid unnecessary changes that might disrupt success.
Whether the G-Class can sustain growth into 2026 and beyond depends on multiple factors. Regulatory pressures around emissions and fuel economy could force changes that compromise the vehicle's character. Economic downturns affect luxury purchases first, potentially dampening demand. Shifting consumer preferences might eventually favour efficiency over presence.
Yet betting against the G-Class seems unwise given its remarkable survival and recent trajectory. A vehicle developed for Austrian alpine farmers in 1979 has become a global status symbol commanding six-figure prices and generating record sales 46 years later. That journey from agricultural tool to fashion icon represents one of automotive history's most improbable transformations. The numbers suggest the transformation isn't finished yet.