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Mercedes-Benz EQE Has Profit Margin Equal To E-Class

Mercedes-Benz | Mercedes-AMG 28/07/2022 No Comments
Mercedes-Benz | Mercedes-AMG
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Mercedes-Benz’s push into battery-electric vehicles is beginning to show results. On the company’s results call today, Mercedes CFO Harald Wilhelm revealed that the EQE has a profit margin equal to the ICE-powered E-Class.
 

Wilhelm said, “At this point the EQE margin is at the point of the E-Class margin,” according to Automotive News Europe. Wilhelm added that the EQE might even be ahead of the E-Class.
 
It’s worth noting that there is a sizable price difference between the two, with the E-Class starting at $55,000 in the US. Mercedes hasn’t revealed EQE pricing for North America, but it starts at about €70,000 ($70,800) in Europe – a $16,000 price difference that’s likely helping the EQE match its ICE equivalent.
 
While that’s good news for the EQE, the larger EQS isn’t doing as well. Wilhelm said that margins for the luxury EV sedan trail the S-Class, but the numbers are improving, with the EQE not far from its ICE sibling.
 

Mercedes has no plans of slowing down its EV assault. The company plans to increase BEV sales over plug-in hybrids in the year’s second half. During the call, Mercedes CEO Ola Kallenius said that he wants 50 percent of the company’s electrified car sales to be BEVs, prioritizing them over plug-in hybrids. The new EQE and the EQS SUV will assist the company in achieving that goal.
 
Battery-electric vehicles still have hurdles to overcome before mass adoption happens. One is cost. Not only have EVs been expensive for consumers to buy, but they have also been expensive for automakers to produce. Production costs and prices are falling, and profit margins are rising as a result.
 
BEVs are still years away from reaching cost parity with ICE vehicles, but the gap is narrowing. Some automakers believe cost parity is just a few years away, while others predict that equality between the two will happen in the decade’s second half. Both costs and prices are falling, which should be a big win for consumers.

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