Full stop: Mercedes radically overhauls its electric strategy, from design to platforms.
Unified design for conventional and electric models
When developing the dedicated EVA electric platform for the EQE/EQS models and their SUV derivatives, Mercedes aimed for highly aerodynamic bodies that resulted in a very low drag coefficient. However, this rounded design was not to customers’ liking and contributed to the dramatic drop in sales of electric models. In particular, the very high prices of the EQE/EQS models and their SUV derivatives have further alienated customers.
But now Mercedes wants to follow BMW’s strategy and unify the design of the entire range. The Mercedes strategy is that customers choose the model first and only then decide on the type of powertrain, which is similar to the “Technology open” strategy promoted by BMW.
The first step has been taken with the new Mercedes CLA built on the MMA multi-drive platform, which has the same design regardless of propulsion – electric or mild hybrid.
Mercedes also wants to apply this strategy to future electric models. The Mercedes C-Class EV and GLC EV will have a similar design to the conventional models, and at Capital Markets Day Mercedes announced that it will launch an electric E-Class by 2027. This means that, quite possibly, the EQE won’t have a successor, its place will be taken by the electric E-Class.
Mercedes is also dropping the EQ name
Initially, Mercedes wanted to differentiate the electric range from the classic which seemed logical. Thus the names EQA, EQB, EQE, EQS, and EQC indicate the electric versions. But then things got complicated. The EQC was the electric equivalent of the GLC but it might as well be the electric equivalent of the C-Class. And then other naming complications arose, see Mercedes G 580 with EQ Technology.
But last year, Mercedes boss Ola Kallenius confirmed that soon the EQE and EQS designations would be history. “Over the next few years, there will be the nomenclature that you know: the S-Class, E-Class, C-Class, and the SUV derivatives of these”, said Kallenius.
More luxury models, less entry-level
In the fall of 2020, Mercedes announced that it would focus on luxury models and reduce the compact lineup. But this angered customers and dealers alike, who sent an open letter to Mercedes management in 2023.
But Mercedes isn’t giving up on this strategy and at the latest Capital Markets Day, Kallenius announced that the Maybach and AMG luxury brands still have a lot of growth potential and this should be exploited.
On the other hand, the compact line-up has been reduced from seven to four models, with the A-Class sedan and hatch and the B-Class no longer part of the next compact generation. Instead, a few days ago, Mercedes confirmed it will build a compact version of the G-Class offroader.
Also in 2026, Mercedes will fill the gap in the electric lineup between the EQA/EQB and EQE/EQS with new electric C-Class and GLC models. It seems that Kallenius has realized that expansion and investment in the Top-End segment cannot be achieved without significant volumes in the mid-size and compact segments.