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.