Mercedes-Benz, a luxury automaker, is attempting to entice electric vehicle (EV) owners from rival brands to switch to its EVs with generous incentives, according to Cars Direct.
The German brand is offering substantial discounts on its MY 2023 electric vehicles, with the EQS Sedan and SUV eligible for $2,500 off their MSRP and the EQE Sedan receiving a $1,000 reduction, while the smaller EQB SUV gets a $500 cut. Mercedes has not publicly advertised these incentives.
In addition, the company is running an “EQ Conquest Program,” which offers potential customers a $1,500 bonus for trading in their rival brand’s EV or plug-in hybrid vehicle. For instance, a Model S owner who is interested in the EQS Sedan can save up to $4,000 off the purchase price.
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This move by Mercedes is likely in response to Tesla’s recent price reduction that has boosted its sales and popularity. Other automakers such as Ford and newcomer VinFast have also had to reduce their prices to remain competitive in the EV market.
However, Renault Group CEO Luca de Meo has warned that a price war in the EV industry could be harmful and eat into the profits of automakers, as they need to generate margins to invest in the business.
It is worth noting that none of the Mercedes-EQs EVs qualify for the tax credit, making it even more challenging for the automaker to attract customers. Whether the discount will be successful in driving sales remains to be seen, but the lack of a $7,500 tax credit may make it difficult to sell EVs.
