Maybe it's time to trade that Model S for an EQS Sedan.
Luxury automaker Mercedes-Benz is offering electric vehicle owners an incentive to switch brands and purchase an electric vehicle with a three-pointed star reports Cars Direct.
Based on incentive bulletins seen by the publication, the German brand is offering an incentive bonus on MY 2023 electric vehicles. The EQS Sedan and SUV are privy to the most significant discounts, with $2,500 off the MSRP. Those purchasing a new EQE Sedan can look forward to a $1,000 price reduction, while the smaller EQB SUV receives a $500 price cut. Strangely, Mercedes hasn't advertised these incentives.
Mercedes is also running an "EQ Conquest Program," worth $1,500. The idea is simple. Potential customers must prove they own an EV or plug-in hybrid vehicle from a rival brand. If, for example, a Model S driver finds themselves enamored by the EQS Sedan, they could save up to $4,000 off the purchase price.
With a starting price of $102,310, one could potentially purchase a brand-new EQS 450+ for $98,310. The more affordable EQB (priced from $54,500) can be picked up for $52,500. That makes the electric SUV a more affordable prospect than the Tesla Model Y, which recently received a hefty price reduction, followed by another increase just days later.
Tesla's highly-publicized price reduction likely pushed Mercedes-Benz to offer these discounts. Even before the Texas-based automaker reduced prices across the board, Tesla enjoyed strong sales and growing popularity across the board. With a lower entry point, more people can afford the automaker's vehicles, notably the Model 3 and Model Y.
In response, legacy automakers like Ford have also lowered Mustang Mach-E prices to remain competitive. Newcomer VinFast has also had to take action, launching a series of discounts and incentives to fend off Tesla's attack.
Interestingly, this is something Renault Group boss Luca de Meo has warned against. The CEO is concerned that reduced pricing could eat into the profits of automakers in the EV business.
"I think that a battle on pricing [for] electric cars right now when we're starting operations isn't the best thing that could happen to the industry. Because we have to invest, we have to generate a margin for electric cars. Otherwise, this will not become [a] very healthy business for the industry," he said.
Currently, none of Mercedes-EQs EVs qualify for the tax credit. This means the automaker must work even harder to attract customers, and this discount may be one way of doing so. Whether it works remains to be seen, but we're guessing it's a lot tougher to sell electric vehicles without that appealing $7,500 incentive.
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