Mercedes-Benz is continuing its premium pricing approach in China, even as competition from lower-cost domestic brands has eroded its market share, CEO Ola Kaellenius told Reuters ahead of the IAA auto show in Munich.
Kaellenius said the newly unveiled all-electric GLC SUV, featuring EQ Technology, would play a key role in regaining ground in the world’s largest auto market. “This is going to hit the nail on the head in terms of what Chinese Mercedes customers are looking for,” he said. “And yes, we charge a little bit more. But GLC fans can rest assured … from a pricing point of view, if you’re currently a GLC customer, you will also feel at home with this new electric GLC.”
The GLC with EQ Technology, set to enter production in the first half of 2026, succeeds the company’s struggling EQC model. While retaining the familiar proportions of the internal combustion GLC, the electric variant introduces a fresh design, including an illuminated front grille with 942 backlit dots and star-shaped LED daytime running lights. Mercedes said these features would become signature elements across its EV lineup.
Like Porsche, Mercedes-Benz has prioritized protecting margins over expanding market share, reflected in a 19% decline in vehicle sales to 140,400 units in China in the second quarter of 2025. Kaellenius reaffirmed that the company would maintain its premium strategy in the region.
He also highlighted ongoing discussions regarding U.S. auto import tariffs, currently at 27.5%, which are expected to fall to 15% under a European Union-U.S. agreement. “The European Commission and their trade team are working with the American administration on this,” Kaellenius said, adding he hoped Washington would soon formalize the reduction. While he did not quantify the tariffs’ financial impact, he noted, “we’re doing what we can to mitigate it.”
