MERCEDES-Benz has halted all deliveries of its EQ electric models to the US as demand dwindles and dealerships grapple with overflowing inventories.
The German giants, like many other manufacturers, are struggling to navigate the challenging EV market amid the industry’s shift toward electrification.
Mercedes-Benz has been forced to pause deliveries of its EQ electric models to the US[/caption]
The German brand says the decision is a temporary measure due to slowing demand and excess inventory at dealerships[/caption]
Merc’s CEO, Ola Kaellenius remains optimistic about long-term EV adoption in the US despite the current slowdown[/caption]
According to Reuters, the brand has paused EQ Deliveries to the US as a temporary measure due to slowing demand and excess inventory at dealerships.
Furthermore, starting with the 2026 model year, Mercedes-Benz will implement significant price cuts, reducing the cost of its EQE and EQS sedan and SUV models by 4% to 16%, excluding delivery fees.
Experts suggest the slowing EV market is due to the earlier-than-expected reduction in EV tax credits under a spending bill signed by President Donald Trump.
This, in turn, has dampened the US EV market performance for the year.
During their EV pause, Mercedes-Benz plans to reduce its EQ inventory in the US while continuing to supply vehicles from its Tuscaloosa, Alabama plant.
The brand’s CEO, Ola Kaellenius, remains optimistic about long-term EV adoption in the US despite the current slowdown, and predicts gradual growth in BEV (battery electric vehicle) adoption over time.
He said: “We don’t believe that the BEV demand in the United States goes to zero: we still think that the medium to long-term adoption rate of BEVs in the US will creep upwards.”
Merc announced earlier this year that it will prioritize petrol and diesel models in its new product lineup, targeting 19 combustion engine models and 17 BEVs by the end of 2027.
This decision has followed a significant drop in BEV sales in the last year.
This comes as the luxury marque recently came under fire for unveiling a controversial new feature that allows drivers to take part in Microsoft Teams video calls while on the road.
The update lets people in new cars stream live footage of themselves to colleagues during meetings, even while driving – sparking widespread concern with critics branding it “dangerous” and “reckless”.
The company insists the feature meets local safety laws and that the driver cannot see others on the call or view shared screens.
Instead, the in-car display switches to audio-only mode once the camera is turned on.
Mercedes said: “With this update, drivers can use the in-car camera while driving, allowing other participants to see them during a meeting.
“Given the brand’s focus on safety, the use of the camera abides by the laws of each country and has been approved for use on the move.
“To minimise distraction and maximise safety while driving, the meeting video stream turns off automatically as soon as the camera is activated.
“As a result, the driver will never see any shared screens or slides – and the camera can be turned off at any time.”
Mercedes also claims the system is designed to reduce distraction and maintain focus on the road.
Why aren’t people buying EVs?
In January, many EV makers reported slow demand. Reuters said there are a few valid reasons for a slow in demand:
- High initial costs. Many automakers, like Tesla, Hyundai, and Ford have conducted “price slashes” on their flagship EVs to attract new buyers, though demand remains slow.
- Higher insurance costs. Some insurance companies cite fire risks, high costs of battery replacement, and higher vehicle weight as reasons for higher premiums.
- Charging anxiety. A large percentage of people remain fearful of being in a situation where they won’t be able to charge if they run out of battery due to a lack of infrastructure.
- Range anxiety. In many instances, EVs still don’t have the range and infrastructure of gas-powered vehicles.
- Poor performance in extreme temperatures. Reduced range in extremely hot or cold weather makes potential buyers wary.
Source: Reuters
