Mercedes Has A Problem With EQ Electric Vehicles

Industry News / 5 Comments

Demand for battery-powered luxury vehicles is outstripping supply.

Like nearly every other automaker, Mercedes is taking the electric revolution seriously. With typical German efficiency, the company has unveiled a flotilla of battery-powered vehicles in the last few years, spearheaded by the range-topping EQS luxury sedan. The range is only set to grow; Mercedes recently unveiled the SUV variant of its halo model and, while neither is quite the aesthetic masterpiece we had expected, they're both hugely impressive motorcars.

It comes as no surprise that eco-minded consumers with deep pockets are enamored with the brand's EV offerings. While this should be a reason to celebrate for Mercedes-Benz, company CEO Ola Kallenius told Reuters the automaker can't seem to keep up with sky-high demand. "[It's] so tremendous that we're doing everything we can to get the cars to the customers as fast as we can."

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Currently, the EQS is the only electric car the Three-pointed star offers in the USA, but that's set to change with the arrival of the aforementioned SUV variant and the smaller EQE sedan (expected to arrive later this year). However, in Europe, several smaller EVs give buyers more choice. The still-fresh EQA compact SUV is proving popular in other markets, where it's outselling ICE-powered rivals such as the Jaguar E-Pace.

This inability to meet EV demand is likely due to the ongoing chip crisis and supply chain issues, which have only been exacerbated by Covid-19 and the ongoing crisis in Ukraine. Kallenius didn't detail any plans to assuage the situation, but it's worth noting both Mercedes-Benz and rival BMW previously navigated supply issues by prioritizing high-priced vehicles and raking in bigger financial rewards courtesy of the larger operating profits.

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Hopefully, the chip crisis will let up and allow manufacturers to meet the demand of voracious luxury car buyers. If not, it's only expected to get tougher for automakers such as Mercedes; the brand plans to introduce the EQE and EQS AMG models in the States, two vehicles that will prove popular with the country club set. Also expected, although in 2024, is the first-ever electric G-Wagon.

Dubbed the EQG, the battery-powered Gelandewagen is set to become the darling of Beverly Hills (and every other wealthy neighborhood across the world) and, with the German company already struggling to meet the demand for the ICE-powered derivative, the EQG will challenge the company on the supply/demand front. By then, we hope the chip crisis subsides - hopefully, exorbitant car prices will take a tumble, too.

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Source Credits: Reuters

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