Mercedes-Benz is reviewing its electrification strategy. The EQ designation for its all-electric models is disappearing, with future models carrying similar nameplates for both electric and combustion engine configurations.
From now on, the German luxury carmaker will use “EQ Technology” to designate 100-percent electric models, and “EQ Hybrid Technology” for plug-in hybrids. The future electric CLA, due mid-2025, will be thus called “CLA with EQ Technology”.
Why the change?
The reversal stems from declining EV sales and demand by U.S. dealers for a more flexible powertrain offering. Mercedes says it maintains its electric ambitions, but that it’s adapting its range to meet market trends.
Mercedes-Benz E-Class sales in 2024
- - EQE in Europe: 12,391 units (-21 percent vs. 2023)
- - E-Class combustion: 45,772 units (+32 percent vs. 2023)
Is the EQE doomed?
This change could accelerate the anticipated demise of the EQE, launched in 2022. Mercedes has confirmed the arrival of an electric E-Class in 2027, without specifying whether it will replace the EQE.
A trend among automakers
Mercedes is not alone in rethinking how best to market its different powertrain formats to customers. BMW and Audi are also adjusting their strategy regarding electric and combustion-powered models. BMW combines shared platforms (iX3) and dedicated models (iX). Audi tried to differentiate EVs by giving them even numbers (A4/Q6) but is now reverting to a classic nomenclature.
A mixed range until the 2030s
Mercedes is planning 36 new models between now and 2027, including 19 combustion-engine and 17 electric models. In the words of Mercedes-Benz CEO Ola Källenius, “We will maintain a balance between combustion and electric vehicles well beyond the year 2030.”
By unifying its range, Mercedes aims to appeal to all buyers, leaving the choice of powertrain open, while preparing for regulatory changes in Europe and the U.S.