Mercedes-Benz has temporarily paused deliveries of its EQ electric vehicle (EV) lineup to the United States in response to softening demand and elevated dealer inventory, the German automaker said on Wednesday.
“Mercedes-Benz is temporarily putting on hold order banks for EQ models in the U.S. to align with current market demand,” a company spokesperson said in a statement.
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The move comes amid broader concerns about the U.S. EV market, following changes to federal tax incentives under a recent spending bill signed by former President Donald Trump. The revised legislation accelerated the phase-out of certain EV tax credits, prompting analysts to warn that the country’s electrification goals may underperform this year.
Mercedes-Benz assembles several of its battery-electric models at its Tuscaloosa, Alabama plant, which serves the U.S. dealer network. The company did not specify how long the pause would last or which EQ models would be most affected.
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Despite the current market headwinds, Mercedes-Benz CEO Ola Kaellenius expressed optimism about long-term EV adoption in the U.S. “We don’t believe that the BEV demand in the United States goes to zero: we still think that the medium to long-term adoption rate of BEVs in the U.S. will creep upwards,” Kaellenius told reporters during the company’s second-quarter earnings call.
In February, the automaker revised its strategy, saying it would produce more internal combustion engine vehicles than EVs through the end of 2027. It outlined plans to launch 19 new petrol and diesel models and 17 battery-electric vehicles over that period. The shift followed a 25% year-on-year drop in EV sales in 2024.