The Mercedes EQE now costs 478,000 yuan ($67,675) in China, compared to 528,000 yuan earlier this week, the automaker’s website says.
Mercedes-Benz cut prices on two electric car models in China by as much as $33,000, as heated competition in the world’s biggest EV market impacts sales.
The automaker said in a statement on its website on Tuesday that it was reducing prices on certain models from its EQ range, effective Wednesday, and that it would provide subsidies to customers who recently bought the cars.
The cuts seemed to be immediate, with the EQE priced at 478,000 yuan ($67,675) on Mercedes’ Chinese website Wednesday morning, compared to 528,000 yuan as recently as Tuesday.
The EQS luxury edition model was listed at 956,000 yuan on Wednesday, down from 1.19 million yuan on Tuesday, equivalent to a reduction of around $33,000.
Mercedes is making the cuts because sales have been disappointing in China, according to people familiar with the company’s plans, who asked not to be identified because the information is private.
Some dealers have already been carrying out promotions to try and boost sales, with EQS deliveries at times dropping to as low as 100 a month, the people said.
The EQS is the full-electric version of Mercedes’ flagship S-Class model, a vehicle that is meant to showcase the automaker’s most advanced technologies.
While the EQS’s low-slung roof makes it very aerodynamic — increasing its range on a single charge — the design means there is less headroom in the rear seating compartment, a drawback in the Chinese market where wealthy customers may prefer to sit in the back rather than drive the car themselves.
In a statement to Bloomberg News, Mercedes said the top-end EV segment in China is still evolving, especially for cars priced above 1 million yuan.
“Mercedes-Benz continually observes and analyzes dynamic market developments, including the current positioning of other manufacturers in the luxury segment. Based on that, Mercedes-Benz is repositioning certain EQ models in China,” the automaker said.
Foreign and legacy car brands are falling behind rising local names in China, with domestic automakers accounting for almost 80 percent of EV sales in the first seven months of 2022, according to the China Passenger Car Association.
Mercedes sold about 8,800 EVs in the country from January to July, data from the China Automotive Technology and Research Center show, including less expensive EQA, EQB and EQC models.
Chinese EV giant BYD, which targets more of the middle market, sold nearly 220,000 EVs in October alone.
Mercedes is not the only foreign automaker responding to Chinese market pressures. Tesla lowered prices across its lineup in China in October.
“Local automakers have already strengthened their muscles,” PCA Secretary General Cui Dongshu said at a briefing earlier this month. “After making up the technological gap in car manufacturing in the new energy vehicle sector, Chinese automakers have an apparent advantage in both supply chains and end sales.”
Please enter a valid email address.
Please enter your email address.
Please verify captcha.
Please select at least one newsletter to subscribe.
You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.
Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.
You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.
Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.
Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.
1155 Gratiot Avenue
Detroit MI 48207-2997
Tel: +1 877-812-1584
Email Us
ISSN 2643-6590 (print)
ISSN 2643-6604 (online)