Mercedes is having major problems selling luxury electric cars. Sales are well below the ambitious targets and are even in danger of falling again in 2024.
Stuttgart/Munich - There is officially no sign of alarm at Mercedes-Benz, but internally the heads of the managers in Baden-Württemberg are likely to be boiling: In recent years, the group has consistently expanded its model range to include electric cars and offers electrified vehicles in several segments.
However, the diverse portfolio is not reflected in the sales figures; the opposite is the case: As the
Handelsblatt
reports, the car manufacturer sold a whopping 170,000 fewer electric models worldwide last year than internally planned.
Mercedes: The decline in electric cars continues - in contrast to BMW
The fact that the decline in e-mobility does not appear to be over for the time being is illustrated by the fact that sales in the first three months of 2024 are almost nine percent below the comparable quarter of 2023.
According to CEO Ola Källenius, Mercedes-Benz is in the top group when it comes to factors such as “performance, consumption, range or real charging speed”, but the sales figures alone leave something to be desired.
It is absurd that it has anything to do with the general market environment for electric cars: the arch-rival from Munich has a lot of power when it comes to electric cars. BMW was able to increase the number of deliveries of BEV models by a whopping 40 percent over the course of the year so far and has sold over 30,000 more models in three months.
Mercedes: Can facelifts stop the sales crisis for electric cars?
It is obvious that Mercedes-Benz's pricing strategy plays a significant role in the development: The core brand Mercedes-Benz Cars is committed to the luxury segment; the cheapest electric car is not available for less than 50,000 euros (Mercedes EQA). The
Handelsblatt
quotes an executive saying that they are “pretty perplexed”.
How does Mercedes want to stop the sales crisis? According to the report, Stuttgart's hopes lie in the revision of the high-priced models, including the flagship EQS: the luxury sedan will receive optical refinements, a larger battery for more range and other optimizations (including trailer load).
Mercedes luxury models are being revised – more power for the same money
The other makes of the EVA-2 platform, the Mercedes EQE and the respective SUV derivatives, are also receiving an extensive facelift in which basic things are adjusted and the standard scope is expanded.
There is little or no adjustment to the cost screw, but there is more performance for the same money. For the facelifts, the basic prices “remain unchanged despite the upgraded standard equipment,” according to the manufacturer. It seems questionable whether the measures will stop the downward trend.
Meanwhile, the restructuring of the sales network is causing a stir internally, with employees at numerous car dealerships going on the barricades in view of the planned sale.
Problem child Mercedes EQS far below sales expectations
The biggest problem child seems to be the EQS luxury sedan: the response, particularly in the most important sales market of China, is far below expectations. A “Mercedes veteran” even describes the vehicle as a “stillborn” in the report.
The domestic competition for electric cars is now too strong. In addition, Tesla sells significantly 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 - in contrast to the combustion models - has been left behind, which is said to be partly due to the rounded design of the vehicles.
Mercedes-Benz: Expert sounds the alarm about overpriced electric cars
An analysis by the analysis company Marklines makes the situation surrounding the flagship luxury model clear: According to this, sales in the world's 62 most important passenger car markets fell from 22,500 to 18,100 models sold within one year. Källenius' management internally expected annual sales of 50,000 units.
Expert Stefan Bratzel from the Center of Automotive Management (CAM) in Bergisch-Gladbach also has his say in the report. He considers the measures from April 2024 to be the right interim step, but the electric cars from Mercedes are too expensive: “The electric vehicles have to be priced much closer to the combustion engines.”