Battery-electric vehicles accounted for 10% of Mercedes-Benz sales worldwide during the first three months of 2023.
The German luxury carmaker reported its EV sales increased by 89% during the first quarter as the company’s change over to battery electric vehicles gained momentum. Mercedes’ battery electric vehicle (BEV) sales almost doubled to 51,600 units, according to the company’s quarterly sales report.
Big boost in EV sales in the U.S for Mercedes
The company’s BEV sales surged by 327% in the United States and 41% in Europe. Additionally the EQE SUV was launched in the U.S. market ahead of the model’s launch in Europe and China in the second quarter. Including hybrids, almost every fifth vehicle sold in the first quarter was electric, the automaker noted in its sales report.
“Our customers’ desire for our Top-End products and battery electric vehicles is the driving force behind our sales result in the first quarter,” said Britta Seeger, member of the Board of Management of Mercedes-Benz Group AG, responsible for Mercedes-Benz Cars Marketing and Sales.
“Beyond this, we successfully introduced our direct sales model in the UK, while Germany and two more markets will follow in 2023. Looking forward, I am already excited about the upcoming world premiere of the first all-electric Mercedes-Maybach EQS SUV next week.”
Mercedes-Benz Cars also reported the best quarter ever for its most expensive models such as Mercedes-AMG, G-Glass and Mercedes-Maybach. Top-end vehicle sales rose by 18% to 91,800 units despite ongoing supply-chain disruptions, economic headwinds and geopolitical uncertainty. Entry-level electric vehicles posted strong sales figures.
The top-end segment will remain fresh throughout 2023 and beyond as the upgraded GLS family with a fully electrified engine portfolio will hit dealerships in the second half of the year, Mercedes-Benz said.
Europe boosted quarterly sales
Overall, Mercedes-Benz Cars sales increased by 3% to 503,500 units, despite the company’s withdrawal from the Russian market and the war in the Ukraine. Mercedes got a lift from other European markets, mainly Germany where the sales of the Mercedes brand increased by 21%, while sales increased by 22% in Italy and by 28% in Spain.
In Asia, sales increased by 3% to 247,700 units with China slightly above prior-year level. Top-end sales in China stayed high, reaching a new record with 20,500 units in the first quarter. The result was boosted by robust demand for the GLS, which saw sales increase 17% to 4,500 units, as well as the G-Class with sales up by 71% to 1,600 units.
In the U.S. market BEV sales, more than quadrupled in the first three months. Battery electric vehicles now account for 14% of Mercedes-Benz Cars sales in the U.S. following the market introduction of the EQB, EQE, EQE SUV and EQS SUV. Moreover, sales in the top-end segment rose by 29% to 27,900 units, representing a share of 43% of Mercedes-Benz Cars unit sales in the U.S. market.
The increase in the sales of Mercedes-Benz electric vehicles in the U.S. apparently was a factor in Tesla’s decision to cut prices through the first quarter since both companies are battling for sales in critical. California market. Mercedes-Benz has cut prices on some EQ models the German automaker sells in China.
In a note to investors last month, Welbeck Ash Research noted Mercedes-Benz cars is facing challenges as it transitions to electric vehicles. “Mercedes-Benz is struggling with its EV transition and faces pressure from Tesla, who is slashing prices,” the note observed. “Economic conditions and China removing its subsidies will likely contribute to slowing or declining sales in 2023.”