Mercedes-Benz is facing a crisis in its electric vehicle (EV) segment as sales for its EQ models—the EQB, EQE, and EQS—tumbled by a staggering 42% in Q3 2024 compared to the same period last year. The automaker sold just 5,769 units, a steep drop from the 9,984 sold in Q3 2023, raising alarms about the future viability of its electric lineup. The EQS, once a flagship of Mercedes’ electric ambitions, has seen a shocking 50% decline in sales year-over-year, making it the worst-performing model in the segment.
Despite this bleak picture for EVs, Mercedes-Benz overall managed to boost total sales by 11%, thanks largely to its strong SUV lineup and new models like the CLE. But the question remains: Can Mercedes continue to thrive as its electric vehicle efforts falter?
Breaking Down the Numbers
While Mercedes remains tight-lipped on the individual performance of the SUV versus sedan versions of the EQE and EQS, it’s clear that the entire EQ brand is struggling. The EQB saw a brief sales boost in Q2, but even it couldn’t escape the downward trend as sales dropped 31% year-over-year.
Here’s how the EQ lineup fared in Q3 2024 compared to Q3 2023:
- EQB: Down 31%
- EQE: Down 58%
- EQS: Down 33%
Not Just EVs: Other Models in Decline
Mercedes’ EV woes aren’t the only cause for concern. The E-Class, which recently underwent a major refresh, saw sales plummet by 51% in Q3 2024. Meanwhile, the iconic SL convertible is in freefall, with an 81% drop compared to last year, indicating that the luxury brand’s traditional models are also struggling to maintain their appeal.
SUVs and New Models to the Rescue
Despite the poor performance of several key models, Mercedes has seen a significant boost in overall sales, largely due to the strength of its SUV lineup. The GLC, for instance, saw a staggering 144% increase in sales, and the GLE was up 34%. The all-new CLE coupe has also been a standout, selling over 10,000 units this year—more than the S-Class, G-Class, or even the entry-level CLA—showing that Mercedes’ investment in SUVs and sporty models is paying off.
A Rethink on Electrification
Mercedes-Benz appears to be having second thoughts about its aggressive push into EVs. Earlier this year, CEO Ola Källenius admitted that the company had been overly optimistic about its electrification goals. In a major pivot, Mercedes scrapped its plan for a new large EV platform set for 2028. Instead, the automaker plans to follow BMW’s approach, offering both electric and internal combustion versions of its flagship S-Class, effectively sidelining the EQS as the ultimate luxury EV.
What’s Next for Mercedes-Benz?
While SUVs and new models are helping Mercedes maintain growth, the stark decline in EV sales raises questions about its long-term strategy. With regulatory pressures and the automotive industry shifting rapidly towards electrification, Mercedes needs to find a balance that doesn’t alienate its traditional customer base or miss out on the growing EV market.
As the 2026 regulation changes loom, the luxury giant must decide whether to double down on its electrification efforts or take a more measured approach to avoid further miscalculations. For now, it’s clear: the once-unshakable dominance of Mercedes in the premium market is facing its toughest test yet.
