Low sales of EQE and EQS flagship electric models forces Mercedes-Benz to cut prices in China.
Retail price for the EQE was cut by 9% (from $74,480 to $67,430) and the EQS flagship limousine’s price by 11-22%.
Move is aimed to boost Mercedes sales in China, where foreign automakers struggle to break into country’s growing EV market.
Mercedes sold 8,800 EVs in China from January through July. In comparison, China’s BYD sold almost 220,000 EVs in October alone.
German auto brand Mercedes-Benz has cut prices on some of its EQE and EQS electric luxury models in China by as much as $33,000 due to changing market demand for top-end electric vehicles (EVs).
The carmaker’s Chinese website show that the retail price (MSRP) for the EQE vehicle was cut by 9% (from $74,480 to $67,430) while the price of the EQS flagship limousine was cut by 11-22% (from $167,870 to $134,860).
The move, aimed to boost sales in China, highlights the challenges for foreign automakers as they struggle to break into China’s growing EV market, where sales of EVs rose to 110% year-to-date.
Data from the China Passenger Car Association shows that sales of the four EVs affected by Mercedes’ price cuts accounted for 3% of its total sales in China in the first eight months of 2022.
Mercedes-Benz sold approximately 8,800 EVs in China from January through July, including less expensive EQA, EQB and EQC models. In comparison, Chinese EV leader, BYD, sold almost 220,000 EVs in October alone.
“The Top-End electric vehicle segment in China is still evolving … Mercedes-Benz is repositioning certain EQ models in China,” a spokesperson said.
Late in October, Chinese EV brand Aito, launched by Huawei and Seres Group, lowered prices of its Electric Vehicles by around $1,100 on two models, while Tesla also cut prices by up to 9%.