₹27 lakh discount! Mercedes hacks down EV prices in China to bolster sales
China may be the largest electric vehicle (EV) market in the world but such is the fierce nature of the competition here that even a brand like Mercedes-Benz is finding its sales lag and has now announced a major price cut across most of its electric offerings here.
Mercedes has reportedly slashed prices of its EV models in China by as much as up to $33,000 or approximately ₹27 lakh. The EQE, for instance, was priced at 528,000 yuan (approximately ₹60.67 lakh) but is now at 478,000 yuan (approximately ₹55 lakh). The more substantial price cut comes on the EQS flagship electric sedan which is now at 956,000 yuan, down from 1.19 million yuan. This translates to a reduction of around $33,000 or approximately ₹27 lakh.
Bloomberg reports, quoting unnamed sources, that the price cuts have been prompted by lukewarm sales in recent times. Concerns became even more evident when sales of EQS fell to 100 units in some of the previous months. This is believed to be quite low for a market as big as China.
Data from China Automotive Technology and Research Center reveal that the Germans sold around 8,800 EVs in the country between January and July with the comparatively more affordable options like EQA, EQB and EQC models dominating. But such is the intense rivalry against fellow international car makers and especially local EV manufacturers that the numbers do emerge as rather pale. BYD, for instance, sold 2.20 lakh EVs in October alone.
Analysts mostly agree that the Chinese EV market does offer a whole lot of opportunity for global and local manufacturers but at the same time, can be home to some cut-throat competition. Tesla, the world's biggest EV company, is also finding the going steadily getting tough and now aims to better target the mass segment with a more affordable option than its Model 3 which is made at its Shanghai plant.