Mercedes-Benz’s push into battery-electric automobiles is starting to point out outcomes. On the corporate’s outcomes name as we speak, Mercedes CFO Harald Wilhelm revealed that the EQE has a revenue margin equal to the ICE-powered E-Class.
Wilhelm mentioned, “At this level the EQE margin is on the level of the E-Class margin,” in keeping with Automotive Information Europe. Wilhelm added that the EQE may even be forward of the E-Class.
It is price noting that there’s a sizable worth distinction between the 2, with the E-Class beginning at $55,000 within the US. Mercedes hasn’t revealed EQE pricing for North America, however it begins at about €70,000 ($70,800) in Europe – a $16,000 worth distinction that is doubtless serving to the EQE match its ICE equal.
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Whereas that is excellent news for the EQE, the bigger EQS is not doing as properly. Wilhelm mentioned that margins for the posh EV sedan path the S-Class, however the numbers are bettering, with the EQE not removed from its ICE sibling.
Mercedes has no plans of slowing down its EV assault. The corporate plans to extend BEV gross sales over plug-in hybrids within the 12 months’s second half. In the course of the name, Mercedes CEO Ola Kallenius mentioned that he desires 50 % of the corporate’s electrified automotive gross sales to be BEVs, prioritizing them over plug-in hybrids. The brand new EQE and the EQS SUV will help the corporate in reaching that aim.
Battery-electric automobiles nonetheless have hurdles to beat earlier than mass adoption occurs. One is price. Not solely have EVs been costly for shoppers to purchase, however they’ve additionally been costly for automakers to supply. Manufacturing prices and costs are falling, and revenue margins are rising in consequence.
BEVs are nonetheless years away from reaching price parity with ICE automobiles, however the hole is narrowing. Some automakers consider price parity is just some years away, whereas others predict that equality between the 2 will occur within the decade’s second half. Each prices and costs are falling, which needs to be an enormous win for shoppers.
