Due to intense competition in the largest EV market in the world, Mercedes-Benz Group AG reduced pricing on two electric car models in China by as much as $33,000. The luxury automaker announced late Tuesday that selected models from its EQ range will have lower costs starting on Wednesday and that it would offer subsidies to consumers who had only just purchased the vehicles.
The price decreases appeared to be effective right away, as the EQE was listed on Mercedes’ Chinese website Wednesday morning for 478,000 yuan ($67,675), down from 528,000 yuan on Tuesday. The EQS luxury edition model was reduced from 1.19 million yuan on Tuesday to 956,000 yuan on Wednesday, a decrease of almost $33,000.
According to people familiar with the company’s plans who wanted to remain anonymous because the information is private, Mercedes is making the adjustments because sales in China have been underwhelming. According to the sources, some dealers have already started running deals in an effort to increase sales, with EQS deliveries occasionally falling as low as 100 per month.
The Mercedes flagship S-Class model’s all-electric variant, known as the EQS, is designed to highlight the company’s most cutting-edge technological advancements.
There is less headroom in the back seat of the EQS, which is a disadvantage in the Chinese market where wealthy customers may prefer to sit in the back rather than drive the car themselves. This is despite the fact that the EQS’s low-slung roof makes it very aerodynamic, increasing its range on a single charge.
Mercedes noted in a statement to Bloomberg News that the top-end EV category in China is still developing, particularly for vehicles costing more than 1 million yuan. According to data from the China Automotive Technology and Research Center, Mercedes sold roughly 8,800 EVs in the nation between January and July. These sales included the less priced EQA, EQB, and EQC models. EV industry leader BYD Co. in China sold approximately 220,000 EVs in October alone. BYD Co. focuses more on the middle market. Foreign automakers are responding to challenges on the Chinese market in addition to Mercedes. In October, Elon Musk’s Tesla Inc. reduced pricing across the board in China.
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