Mercedes-Benz Group AG was forced to offer huge discounts for electric vehicle models sold to China. They can reach up to $33 000 for individual models. This is because of growing competition from local automakers which adversely affects Mercedes-Benz sales on the world’s largest electric vehicle market.
According to the manufacturer’s website, prices will be reduced for certain models in the EQ series. Discounts will take effect starting Wednesday. To help those who bought cars in recent years, subsidies will also be offered. It is well-known that the EQE model costs 478 000 yuan ($67.675). However, Tuesday’s price was 528 thousand yuan ($74.625). The premium EQS model is now priced at 956,000 yuan (roughly $135,000), compared to 1.19million yesterday (roughly $168,000). This price drop has been about $33,000.
Bloomberg sources claim that the German company has been forced to offer discounts because of the poor sales results in China. A few dealers have run promotions to boost sales of German automobile products. According to some reports, delivery of EQS models drops to 100 vehicles per month.
This is an all-electric version the Mercedes-Benz S-Class. It utilizes the latest technology. While the low roofline makes the car very aerodynamic, indirectly increasing the range of an EV, the design leaves little space in the rear seats – quite important in the Chinese premium car market, as wealthy buyers prefer to ride in the back seat, leaving the drivers in control.
Local automakers are gaining ground in China, even older brands, and foreign brands are well-known to be in decline. According to data from China Passenger Car Association (CPCA), their products accounted for nearly 80% of all electric vehicles sales in the first seven monthly of 2022.
Some reports claim that Mercedes-Benz sold 8,800 electrified cars in the country between January and July. This includes the cheaper EQA, EQB, and EQC models. Only the Chinese BYD, which is a specialist in mid-range electric cars, was able to sell around 220,000 hybrids and electric vehicles in October.
Mercedes-Benz isn’t the only foreign company to have to respond to fierce Chinese automaker competition. Elon Musk was forced to lower the price of his Tesla models last October.