EQE/EQS prices sold in China are falling sharply

Mercedes is reducing the price of some models of the EQ range in China

In a statement posted on its website, Mercedes said it is reducing prices on some models in its EQ range from Wednesday 16 November and will offer discounts to customers who have recently bought a car.

So the cuts appear to be effective immediately, with the EQE listed on Mercedes’ Chinese website on Wednesday morning for 478,000 yuan (US$67,675).

The EQS model was listed at 956,000 yuan on Wednesday, down from 1.19 million yuan on Tuesday, which equates to a drop of about $33,000.

Mercedes is struggling in China sales

So, to cope with the disappointing commercial results, Mercedes is slashing its prices in the Middle Kingdom, sources familiar with the matter are to believe.

The latter shows that some dealers have already organized promotions to stimulate sales, while monthly deliveries of EQS models have not even exceeded 100 units.

As a reminder, the EQS is a fully electric version of Mercedes’ flagship S-Class, a car designed to showcase the automaker’s most advanced technologies.

Aerodynamics of EQS: …. A disadvantage in China

The low roof of the EQS makes the car very aerodynamic – increasing its range, reducing electricity consumption – a disadvantage in China, which is seen as an advantage in Europe. In fact, due to its design, the model has less headroom in the back – the ceiling of the passenger compartment is lower – which is a “bad point” in the Chinese market, where a number of wealthy customers prefer to sit in the back rather than drive. the car itself.

A changing market

In a statement to Bloomberg News, Mercedes said China’s premium electric vehicle segment continues to develop, especially for cars priced above 1 million yuan. “Mercedes-Benz continuously observes and analyzes dynamic market developments, including the current positions of other manufacturers in the luxury segment. Based on this, Mercedes-Benz is relocating certain EQ models in China,” the automaker said.

China EV market: 80% of sales are made by domestic manufacturers

It’s a tough time for non-locals in China as they struggle to find a place in the sunshine of the Chinese electric market… So local automakers account for nearly 80% of electric car sales in the first seven months of 2022, according to China Passenger. Automobile Association (PCA).

Mercedes sold about 8,800 electric cars in China between January and July, including the cheaper EQA, EQB and EQC models, according to the China Automotive Technology and Research Center.

Compare that to Chinese electric car giant BYD, which targets more of the mid-market and sold around 220,000 electric vehicles in October alone. Gloups… the difference is dizzying!

Mercedes is not the only foreign car manufacturer to respond to the pressure of the Chinese market. Tesla lowered the prices of its products in China in October.

China dominates the supply chain

“Domestic automakers have already flexed their muscles,” PCA Secretary-General Cui Dongshu said at a briefing earlier this month. “In the new energy vehicle sector, closing technological gaps in vehicle manufacturing, Chinese automakers have a clear advantage in both supply chains and end sales.”

Our opinion, by leblogauto.com

China has several key advantages: access to semiconductors – while its international competitors face shortages that force them to cut back – an extremely tight supply in the EV market… this is clearly dominated by subsidy policies… There are many assets that competitors do not . have been affected by supply chain issues and faced a brighter supply shortage in the intermediate market.

Sources: Automotive News, Bloomberg

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