Mercedes-Benz Uptake In The Luxury EV Segment Still Low Compared To BMW!

According to data in America, it took Mercedes-Benz dealers an average of 82 days to sell an EV, reported Jalopnik and numerous other international media outlets. This is a lot longer than their biggest rival, BMW, who sells electric automobiles on average in 38 and 46 days, respectively. The average time it takes to transfer an electric vehicle in the luxury market is 57 days.

In particular, as competition heats up, dealers are attributing their expanding stock of electric vehicles to both the products themselves and the brand's unwillingness to execute sales programmes. In contrast to the 50-day supply of conventional gas-powered vehicles, one dealer claimed to have a six-month supply of electric vehicles available for sale.

Dealers voice their concerns on the cost premium associated with electric vehicles, particularly in the higher end of the lineup, and the absence of lease support. They claim that electric vehicles lack the "lust factor" present in Mercedes' gasoline-powered premium models, such as the S-Class sedan and AMG-GT coupe, which are more aspirated-to and coveted by consumers.

In response to dealer concerns, Mercedes-Benz America is apparently taking action. Compared to the more cost-effective EQB and EQE crossovers, the business acknowledges an oversupply of more expensive EQS units. In response, they propose to boost manufacturing of lower-tier electric vehicles, plug-in hybrids, and conventional internal combustion engine vehicles while reducing production of high-end EQ models. By the middle of 2024, it's anticipated that this adjustment will be apparent in dealer inventories.

Locally in Malaysia, the car sales situation appears to validate what is occurring in America, as Mercedes-Benz Malaysia, which has more EV vehicles than BMW, is still well behind BMW in terms of sales. Mercedes now offers seven EV vehicles, including the EQA, EQB, EQC, EQE, EQS, EQS SUV, and EQV, whereas BMW only offers five EVs, the i4, i7, ix, ix1, and ix3.

According to data from data.gov.my, Mercedes-Benz Malaysia has only sold a total of 778 electric vehicles, whereas BMW has sold a staggering 2846 electric vehicles, with just the ix having a sales number of 1856 units. However, Mercedes-Benz Malaysia with over 10,316 vehicles sold versus BMW Malaysia’s 7,521 vehicles in 2023 solidifies that Mercedes is still the preferred luxury brand in Malaysia but the uptake is more towards ICE models instead of the EV offerings.