Sunday, December 22

Mercedes Benz Forays into the EV Segment with Newly Launched SUV

The luxury car maker Mercedes Benz is all set to foray into the electric car segment. Benz has launched its much-anticipated electric SUV today which might give a tough fight to the predominant EV player Tesla.

While Tesla has been facing challenges a few days back against going private, Benz has taken a great step and took advantage of the situation brewing up. The market for upscale electric cars is Tesla’s to lose, with sales of its entry-level Model 3 sedan expected to reach about 50,000 cars this year and almost double that in 2019.

“While Tesla currently has a strong hold on the luxury electric market, I don’t think this will be the case after the arrival of the German premium offerings,” said Wajih Hossenally, an automotive powertrain analyst with IHS Markit. “Tesla has virtually zero competition – but this will change from 2019 onwards.”

The newly launched Mercedes EQC features yoga in a direct appeal to the Millennials who have flocked to Tesla – is the first production model under the carmaker’s electric EQ sub-brand. It will further be closely followed by similarly hyped debuts for BMW and Audi.

The EQC is featured with sporty curves and a distinctive full-width rear light, while the interior is quite similar to that of the Mercedes C-Class – a reminder of economies of scale that electric-only Tesla cannot beat.

Earlier, Tesla did not have a competition as there were less makers of electric cars that could reach the level of the company, but now it seems that Tesla needs to gear up for the fight.

The new Mercedes will be priced close to the fuel-burning GLC to compete in the same bracket as Tesla’s $49,000 Model 3. Another affordable Model Y SUV is expected to be launched and join Tesla’s high-end Model X crossover and Model S car, after the year 2020-21.