Mercedes-Benz admits the EQS is a failure in sales, but why?

Mercedes-Benz has officially admitted that its luxury electric sedan, the EQS, failed to meet expectations due to its design and premature launch, forcing the company to completely change its strategy.

Video : Introducing the Mercedes-Benz EQS 580 4Matic in Vietnam.

"Futuristic" design, but detached from the user.

Launched in 2021, the Mercedes-Benz EQS was positioned as a pioneering luxury electric vehicle, representing the future vision of the three-pointed star automaker. However, according to recent statements from Design Director Gorden Wagener, the EQS has not met market expectations. The reason? Simple yet profound: the car "appeared 10 years ahead of schedule."

Mercedes-Benz has admitted that the EQS electric sedan did not meet expectations.

Wagener frankly stated that the EQS's aerodynamic teardrop design, optimized for energy efficiency, was not well-received by traditional customers. Despite its diamond-patterned grille and three-pointed star headlights, the EQS lacked the luxurious, powerful, and timeless presence that consumers expect from a premium sedan like the S-Class.

EQS fails to create an emotional connection with its target customers.

“The EQS is a completely different car, not for those with chauffeurs,” Wagener admitted. In other words, the EQS fails to connect emotionally with the core customer base of the luxury car segment, who value tradition over innovative design.

High selling price is the "biggest barrier".

One of the biggest obstacles preventing the EQS from winning over consumers lies in its relatively high price. In the Vietnamese market, the EQS is distributed in two models: the 450+ version has a listed price starting from 4.839 billion VND, while the higher-end EQS 580 4MATIC is offered at a price of up to 5.959 billion VND.

In the Vietnamese market, the EQS is distributed in two models: the 450+ version has a listed price starting from 4.839 billion VND, while the higher-end EQS 580 4MATIC version is offered at a price of up to 5.959 billion VND.

It's worth noting that for the same price range, buyers can choose the traditional S-Class, which is already very familiar in Vietnam. Specifically, the S450 4MATIC currently starts at 5.199 billion VND, while the Maybach S450 4MATIC costs around 8 billion VND. With a budget of around 6 billion VND, most customers would lean towards the S-Class, an icon of luxury, prestige, and good resale value, rather than taking a risk with the EQS, an electric car that is still relatively unfamiliar in terms of both image and driving experience.

It's worth noting that for the same price range, buyers can absolutely choose the traditional S-Class model, which is already very familiar in Vietnam.

When differentiation doesn't evoke the same emotional response, consumers will always choose the more familiar option, and that's why EQS hasn't been able to break through as initially expected.

Lessons from a mispositioning strategy

Part of the EQS's failure stems from Mercedes-Benz's positioning. The company attempted to market the EQS as "an electrified version of the S-Class." However, this led consumers to directly compare the EQS to an iconic model that had been built over decades.

Market sentiment was also a factor in EQS's failure.

According to Wagener, the EQS should have been marketed as a futuristic electric coupe, like an electric version of the CLS, instead of positioning itself as the successor to the S-Class. This "wrong expectation" led to "right disappointment" when customers felt the EQS didn't live up to their expectations of a top-of-the-line luxury sedan.

In addition, market sentiment is also a crucial factor. Wagener points out that many people still view electric vehicles as electronic devices that can quickly become obsolete, while traditional gasoline cars offer a sense of sustainability and lasting value, like a high-end mechanical watch.

New strategy: Shedding the EQ label, returning to core values.

Faced with market realities, Mercedes-Benz is undertaking a comprehensive strategic adjustment. First, the company will no longer separate its EQ electric vehicle line from its internal combustion engine vehicles. Instead, a unified design language will be applied to both, making them more familiar and accessible to consumers.

EQS is a prime example of having a "vision ahead of its time" but failing to adequately consider consumer emotions and habits.

A clear example is the 2025 CLA model, where the electric and petrol versions are almost identical in appearance. Mercedes has also stopped using a separate EQ designation. The electric GLC will no longer be called EQC but will be integrated into the general GLC line. This strategy has already begun with the electrified G-Class, called “G580 with EQ Technology” instead of EQG.

In the long run, the EQS will be replaced by a purely electric variant of the S-Class itself. However, this won't happen immediately. In the meantime, the EQS will be maintained for a few more years with minor upgrades.

Mercedes-Benz is a brand with a rich history and strong symbolic power. This means that any changes, especially in design and positioning, need careful consideration. The EQS is a prime example of a brand that had a forward-thinking vision but failed to adequately account for consumer emotions and habits.

While EQS cannot be considered a failure, it clearly serves as a valuable lesson about the importance of a clear positioning strategy when introducing a new product.

While EQS cannot be considered a complete failure, it clearly serves as a valuable lesson about the importance of launching a new product with a clear positioning strategy, a design that aligns with the brand identity, and, equally importantly, market readiness.

Mercedes is adapting, and if successful, the future of electrified Mercedes cars will no longer seem "strange," but rather a natural continuation of a glorious legacy.

Source: https://khoahocdoisong.vn/mercedes-benz-thua-nhan-eqs-e-am-that-bai-vi-dau-den-noi-post1555294.html