Mercedes-Benz slashed the prices of several EQE and EQS electric car models in China starting last Wednesday, November 16, 2022.
The cut in car prices was triggered by many changes in market demand for electric vehicles.
“The Top-End electric vehicle segment in China is still developing. Mercedes-Benz is repositioning certain EQ models in China,” Mercedes was quoted as saying by Reuters today, Thursday, November 17, 2022.
The luxury automaker stated that the retail price (MSRP) of the Mercedes-Benz EQS crossover electric car was cut by 9 percent. Meanwhile, the price of the Mercedes-Benz EQE luxury limousine is 11-12 percent. Mercedes-Benz will offer price subsidies through car dealerships to buyers before price adjustments.
This policy made Mercedes-Benz shares fall 5.34 percent.
The company does not expect sales of the Mercedes-Benz EQS electric car to soar in China after the policy. The design of this car is indeed more directed to the European and US markets which prefer a flatter aerodynamic shape. But it can be suitable with high-end Chinese customers using the services of a driver. so it prefers a lot of space and a large trunk.
According to the China Passenger Car Association, Mercedes-Benz sold 11,327 electric cars in China from January to August 2022, less than Tesla which sold nearly 400,000 units and BYD China’s nearly 1 million units.