The Grenadier, which has been assembled in the small town of Hambach for several years, was developed as a rugged alternative to popular 4×4 models like the Land Rover Defender. Its design focuses on simplicity, durability, and off-road performance, powered by a six-cylinder engine sourced from BMW.
However, despite a solid start, the vehicle now finds itself battling multiple challenges that threaten its commercial viability. Among these challenges are a crushing ecological tax in France, which adds a substantial cost to an already expensive vehicle, and new U.S. tariffs targeting European-made cars.
Environmental Costs Weigh on Sales
As of 2025, the Ineos Grenadier is subject to a significant ecological surcharge in France. This malus can amount to a steep 70,000 euros in addition to the base price of the car, which starts at over 72,000 euros before customization. Such a high tax is a major deterrent for potential buyers.
According to Inovev, only a single Grenadier was registered in France in 2025 in its five-passenger configuration, and overall production is expected to fall far short of the 30,000 units originally planned. While smaller versions of the vehicle, such as the two-seat model and the chassis-cab, can avoid the surcharge, these options are not enough to keep the factory running at full capacity.
Tariffs from Trump Deal Another Blow
Donald Trump’s tariffs, which raised duties on European-made cars by 25%, have also dealt a severe blow to the Grenadier’s U.S. sales, which are crucial for the vehicle’s success. The United States remains the vehicle’s top market, but the added cost from tariffs makes the Grenadier less competitive compared to other models, particularly in a high-end 4×4 segment dominated by the Mercedes G-Class. According to reports, this surge in costs has led to a slowdown in U.S. sales, further complicating the financial outlook for the model and its production in France.
Facing Stronger Competition
Even before the tariff increase, the Grenadier was already struggling to carve out a niche in a crowded off-road market. The Mercedes G-Class, a direct competitor, continues to sell six times as many units, while other formidable rivals like the Toyota Land Cruiser and newer Chinese electric vehicles, such as the M-Hero 1, are gaining traction.
The Grenadier’s lack of an electric variant—an area where competitors are making significant strides—has also left it vulnerable. In response, Ineos has been developing the Fusilier, an electric version of the Grenadier, but production delays have raised concerns about its timely release. Reports have even suggested that the Fusilier may eventually be built by Chinese automaker Chery, further complicating the brand’s future.
