EQS [Official] Mercedes-Benz EQS

[Merc1]

Yet it doesn’t seem the styling is the real issue here. The sales are fine everywhere but China, where the back seat seems to be a major barrier. Not that more conventional styling wouldn’t have been welcome…

The looks aren’t helping.

M

 

[CrunchSlaughtered]

Yet it doesn’t seem the styling is the real issue here. The sales are fine everywhere but China, where the back seat seems to be a major barrier. Not that more conventional styling wouldn’t have been welcome…

Do you think this price reduction in China would hurt the sales in the US and Europe. It should have a strong psychological effect on all the potential customers, in case no price reduction is applied also on these two markets.

 

[Serpens]

Do you think this price reduction in China would hurt the sales in the US and Europe. It should have a strong psychological effect on all the potential customers, in case no price reduction is applied also on these two markets.

A small amount of people in the U.S. and Europe will become aware of a price reduction on the EQS in China and an even smaller amount will care.

 

[Sunny]

Flop? No, sales have been fairly consistent over the last year (~600-700 units per month) although last quarter saw some delivery hiccups and was sightly lower.

Euro sales have been consistent as well.

They sold <14k globally in 3 quarters vs stated annual goal of 50k. Yes it is a big sales flop by any standard. Just because it is consistently selling low doesn't make it a success.

 

[CrunchSlaughtered]

They sold <14k globally in 3 quarters vs stated annual goal of 50k. Yes it is a big sales flop by any standard. Just because it is consistently selling low doesn't make it a success.

In fact, especially on the US market, its sales numbers are not far away from those of the S class. And the current S class is considered a huge success (obviously determined by the Chinese market). I don't believe they have planned bigger sales numbers for the US and Europe also. But this was its first year on these markets with the novelty effect and close to "0" competition. Now it will face three hurdles 1) It's not a novelty anymore 2) A very strong competitor in the face of the i7 has occured 3) The price drop in China shows that this car is not worth the money, Mercedes is asking for it.

 

[Serpens]

They sold <14k globally in 3 quarters vs stated annual goal of 50k. Yes it is a big sales flop by any standard. Just because it is consistently selling low doesn't make it a success.

I can’t find the 50k number, can you provide the source? Now I’m curious to see if they’ve revised it down yet.

 

[dalab]

Mercedes has a problem with China
Mercedes has reacted to slow sales of its electric models in China with a significant price cut. But the problem is deeper.

"A few weeks ago, Mercedes CFO Harald Wilhelm was still very confident in himself. "We definitely have no intention of lowering list prices and we have no intention of increasing discounts," he said, referring to a looming recession. To defend the group's high margins from him, when in doubt, he would rather throttle production volume than give discounts on vehicles. But times seem to be changing rapidly.

Mercedes hat ein China-Problem

Mit einer deutlichen Preissenkung hat Mercedes auf den schleppenden Absatz seiner Elektro-Modelle in China reagiert. Doch das Problem liegt tiefer.

www.automobilwoche.de

 

[Sunny]

I can’t find the 50k number, can you provide the source? Now I’m curious to see if they’ve revised it down yet.

EQS - The all-new Mercedes-Benz EQS

This is the official thread of the all-new Mercedes-Benz EQS. Find new information and photos related to this model.

www.germancarforum.com

 

[Sunny]

In fact, especially on the US market, its sales numbers are not far away from those of the S class

It is half of S class sales in US - 11.4k vs 5.7k.

And that is despite there being some anomaly with S class sales in Q3 (it was down 66% compared to Q3 21). And like you said this is the first full year for EQS in US. Very probable it will sink like a stone next year without deep discounts and deals.

But I don't buy the "no competition" part. As much as GCF likes to pretend it doesn't exist, another 100k+ EV sedan sold almost 30k in US this year. I am also sure people are also cross shipping EQS with S class and other 100k+ ICEV sedans.

 

[CrunchSlaughtered]

is half of S class sales in US - 11.4k vs 5.7k.

And that would exactly correspond to the plan for the global sales - S class 100 k per year and the EQS 50 k.The proportion 2:1 is the same so it should be according to the plan.

 

[dalab]

plan for the global sales - S class 100 k per year and the EQS 50 k

Well, 100,000 units is a peak that the previous S-class reached, I don't know if the current one reaches it, but it is established as a record in 2014, the average is around 70,000 units a year.

"This represents a sales record in the history of the Mercedes-Benz flagship saloon."

https://www.autoevolution.com/news/mercedes-benz-s-class-hits-100000-sales-in-one-year-how-they-did-it-87829.html

 

[CrunchSlaughtered]

Well, 100,000 units is a peak that the previous S-class reached, I don't know if the current one reaches it, but it is established as a record in 2014, the average is around 70,000 units a year.

"This represents a sales record in the history of the Mercedes-Benz flagship saloon."

https://www.autoevolution.com/news/mercedes-benz-s-class-hits-100000-sales-in-one-year-how-they-did-it-87829.html

The question was for 2022 plan. In its first full year and the next one the S class from the W220 on, achieved always about 100 k per year

 

[Serpens]

EQS - The all-new Mercedes-Benz EQS

This is the official thread of the all-new Mercedes-Benz EQS. Find new information and photos related to this model.

www.germancarforum.com

Thanks for providing the link, confirms some suspicions. From what I'm reading it doesn't sound like Mercedes publicly released these figures which is why they're so hard to find elsewhere. Handelsblatt said they got these figures from company contacts with no direct quote. I don't doubt that at one point 50k was the dream projected sales figure at one point but I think it would've been clear that would be impossible almost immediately.

 

[Sunny]

Thanks for providing the link, confirms some suspicions. From what I'm reading it doesn't sound like Mercedes publicly released these figures which is why they're so hard to find elsewhere. Handelsblatt said they got these figures from company contacts with no direct quote.

Direct quote from the linked article -

"Demand is at the level of the S-Class," Automobilwoche quotes a statement made by Daimler CFO Harald Wilhelm in a conference call with journalists on the group's business development in the third quarter of 2021. From January to September 2021, Mercedes-Benz sold just over 62,000 units of the Mercedes S-Class. If the demand for the EQS is actually at the level of the combustion engine S-Class, then it will be much better received by customers than Mercedes-Benz itself expected. For 2022, the star calculated 50,000 EQS sold.


My 2c -
It is not norm for manufacturer's to release sales targets for models before launch for this exact reason - it is harder to spin it if it fails to hit the goals. Mercedes slipped up with EQS (guess they got cocky looking at "orders" which is a poor proxy for actual sales). But the fact is almost every MB and BMW EV is a sales flop when it comes to market share as it stands. Only difference is, for EQS, they goal slipped out, so now it is harder to put lipstick on it.

 

[Serpens]

"Demand is at the level of the S-class" says nothing about 50,000 sales in a year. Demand is a point in time indicator and nothing in that direct quote indicates they expected sustained demand. Anyways that's splitting hairs - someone let that 50k number slip but I just want to know more about the context.

I always find these time periods interesting. We will see how much this effects the timing of the eventual MB.EA platform replacement.

 

[tristatez28lt1]

Mercedes cuts EV prices by up to $33,000 as sales lag

Mercedes joins Tesla in responding to market pressure in China by lowering EV prices across its lineup as domestic automakers accounted for almost 80 percent of electric car sales in the first seven months of 2022, according to the China Passenger Car Association.

www.autonews.com

Mercedes-Benz cut prices on two electric car models in China by as much as $33,000, as heated competition in the world’s biggest EV market impacts sales.

The automaker said in a statement on its website on Tuesday that it was reducing prices on certain models from its EQ range, effective Wednesday, and that it would provide subsidies to customers who recently bought the cars.

The cuts seemed to be immediate, with the EQE priced at 478,000 yuan ($67,675) on Mercedes’ Chinese website Wednesday morning, compared to 528,000 yuan as recently as Tuesday.

The EQS luxury edition model was listed at 956,000 yuan on Wednesday, down from 1.19 million yuan on Tuesday, equivalent to a reduction of around $33,000.
Mercedes is making the cuts because sales have been disappointing in China, according to people familiar with the company’s plans, who asked not to be identified because the information is private.

Some dealers have already been carrying out promotions to try and boost sales, with EQS deliveries at times dropping to as low as 100 a month, the people said.
The EQS is the full-electric version of Mercedes’ flagship S-Class model, a vehicle that is meant to showcase the automaker’s most advanced technologies.

While the EQS’s low-slung roof makes it very aerodynamic -- increasing its range on a single charge -- the design means there is less headroom in the rear seating compartment, a drawback in the Chinese market where wealthy customers may prefer to sit in the back rather than drive the car themselves.
Evolving market

In a statement to Bloomberg News, Mercedes said the top-end EV segment in China is still evolving, especially for cars priced above 1 million yuan.
“Mercedes-Benz continually observes and analyzes dynamic market developments, including the current positioning of other manufacturers in the luxury segment. Based on that, Mercedes-Benz is repositioning certain EQ models in China,” the automaker said.

Foreign and legacy car brands are falling behind rising local names in China, with domestic automakers accounting for almost 80 percent of EV sales in the first seven months of 2022, according to the China Passenger Car Association.

Mercedes sold about 8,800 EVs in the country from January to July, data from the China Automotive Technology and Research Center show, including less expensive EQA, EQB and EQC models.

Chinese EV giant BYD, which targets more of the middle market, sold nearly 220,000 EVs in October alone.

Mercedes is not the only foreign automaker responding to Chinese market pressures. Tesla lowered prices across its lineup in China in October.

“Local automakers have already strengthened their muscles,” PCA Secretary General Cui Dongshu said at a briefing earlier this month. “After making up the technological gap in car manufacturing in the new energy vehicle sector, Chinese automakers have an apparent advantage in both supply chains and end sales.”

 

[Serpens]

This also makes me wonder how the EQS and EQE SUV will be priced. Those won't have the rear seat issues at least.

 

[RobbinYoHoodv2]

Can get 10% discount on a new EQS in the UK already and the economic fun is yet to begin. A lot in stock too. Can't be that short of components! Still not worth the asking price.. Only people buying them are businesses maximising the tax advantages! Still not seen one on the road! 300 registered in the first 3 months of UK release.

 

[kiki voinea]

EQS will be remembered as the flop of the decade for MB. Maybe decades.

Besides the design , this car had the worst timing . Right after COVID , right after shortage , right after major markups , and now , prices are dropping as heck worldwide.
Those markups had a huge emotional impact over many people . I remember a YouTuber , Jon Rettinger, that had the same issue with his order for a EQS , and he just went and bought a Lucid , instead of paying over 50k extra for nothing. And had lots of exposure in the media over this. Not all press is good press.


There are lots of EQS for sale , everywhere.

 

[dalab]

I wonder if @Sonder was right and the only way to reverse this failure is to sell them with 25" wheels and body color painted skirts.