Mercedes-Benz in the crisis of the electric car – a luxury sedan as “still born”.

Mercedes has serious problems selling electric luxury cars. Sales are below firm targets and are even at risk of falling again in 2024.

Stuttgart/Munich – There is no official sign of alarm for Mercedes-Benz, but internally the management heads in Baden-Württemberg are likely to seethe: The group has expanded its model range to include electric cars in recent years and offers. them in several groups with electric vehicles.

However, a different portfolio is not reflected in sales figures, the opposite is the case: like that Handelsblatt As he puts it, the automaker sold 170,000 fewer electric models globally last year than planned domestically.

Mercedes: The decline of electric cars continues – unlike BMW

The fact that sales in the first three months of 2024 are almost nine percent below the comparable quarter of 2023 makes it clear that the decline in e-mobility does not seem to be over at this time.

According to CEO Ola Källenius, Mercedes-Benz is in the top group when it comes to “performance, usability, range or actual charging speed”, but sales figures alone leave something to be desired.

It is absurd that it has anything to do with the overall market environment for electric cars: the main rival from Munich has a lot of power when it comes to electric cars. BMW has been able to increase the number of BEV deliveries by 40 percent in the year to date and has sold more than 30,000 more models in three months.

Mercedes: Can facelifts prevent electric car sales crisis?

It is obvious that the price strategy of Mercedes-Benz plays a big role in the development: The main brand Mercedes-Benz Cars is dedicated to the luxury segment of the electric car not available for less than 50,000 euros (Mercedes EQA). The Handelsblatt he quotes one executive as saying that they were “so lost”.

How does Mercedes want to end the sales crisis? According to the report, Stuttgart’s hopes lie in the modification of high-priced models, including the main EQS: the luxury sedan will receive optical modifications, a larger battery for more range and other improvements (including towing capacity).

Mercedes luxury models are getting a makeover – more power for the same money

Others made with the EVA-2 platform, the Mercedes EQE and related SUV derivatives, also receive a major facelift in which the basics are modified and the standard range is extended.

There is little or no adjustment to the cost screw, but there is more performance for the same money. For facelifts, base prices remain “unchanged despite standard equipment upgrades,” according to the manufacturer. It seems doubtful whether the measures will halt the downward trend.

At the same time, the restructuring of the sales network is causing internal turmoil, with employees at many car dealerships continuing to struggle with a planned sales approach.

Problem child Mercedes EQS below sales expectations

The biggest problem child seems to be the luxury sedan EQS: the response, especially in the most important sales market of China, is below expectations. A “Mercedes veteran” even describes the car as “still born” in the report.

Domestic competition for electric vehicles is now very strong. In addition, Tesla sells more electric cars in the People’s Republic than Mercedes and BMW also sells more than three times as many electric cars. In the luxury segment in the Middle Kingdom, Mercedes – unlike the combustion models – was left behind, which is said to some extent due to the circular design of the cars.

Mercedes-Benz: Experts are sounding the alarm about high-priced electric cars

An assessment by the analytics company Marklines makes the situation surrounding the luxury model clear: According to this, sales in the 62 most important markets for passenger cars fell from 22,500 to 18,100 models sold within a year. Management around Källenius expected annual sales of 50,000 units

Expert Stefan Bratzel from the Center for Vehicle Management (CAM) in Bergisch-Gladbach also has his opinion in the report. He considers the April 2024 move to be the right time step, but electric cars from Mercedes are too expensive: “Electric cars should be priced closer to combustion engines.”