According to Mercedes-Benz, the EQE electric sedan is already just as profitable as its thermal counterpart, the E-Class. Both models fit into the E segment (executive sedans), constituting the step before the company’s flagships, the sumptuous EQS and S-Class of the F segment (representation sedans).
“It is more or less the first quarter of the EQE for sale, but at this moment its margin is equal to that of the E-Class. We have seen that the EQS margin is starting to be healthy. It may not be exactly at the level of the S-Class, but it is not very far from it, ” Harald Wilhelm, Mercedes-Benz CFO, said during a recent interview.
The truth is that, even though this is an important milestone for the star firm, we must not lose sight of the fact that the EQE is significantly more expensive than the E-Class (in Germany they start at 51,319 and 66,402 euros, respectively, while in Spain they go to 56,872 and 75,100 euros), which helps to make your margin competitive.
In any case, the high profitability of its electric range is good news for Mercedes-Benz, as the company plans to abandon internal combustion engines in some markets (probably Europe) by the end of the decade, a transition that will only be possible if its zero-emission range is viable from an economic point of view.
The Mercedes-Benz EQE and E-Class fall into the E segment
Hopefully, the upcoming EQE SUV and EQS SUV, derived from the sedans of the same name, will also enjoy a profit margin close to that of the GLE and GLS, the German manufacturer’s two largest SUVs. These models will be especially important in the strategic US market.
By the middle of the decade, the company plans to have a 100% electric alternative for each of its combustion models; therefore, both its compact range (Class A, CLA) and medium (Class C), as well as its niche proposals (Class G, SL, AMG GT…), will be electrified in the very short term, which will allow Mercedes-Benz not get off the hook against premium rivals such as Audi, BMW, Cadillac, Genesis or Volvo, which are moving to electric mobility at full speed intending to stand up to the almighty Tesla.