By Alessandro Parodi and Amir Orusov (Reuters) -Mercedes-Benz will pause deliveries of its EQ electric range to the United States, the carmaker said on Wednesday as it responded to slowing demand and
Mercedes-Benz Cuts EV Prices and Pauses Deliveries Amid Demand Drop
Mercedes-Benz Adjusts Electric Vehicle Strategy
By Alessandro Parodi and Amir Orusov
Price Reductions on EQ Models
(Reuters) -Mercedes-Benz will pause deliveries of its EQ electric range to the United States and cut prices of new EQ models there, the carmaker said on Wednesday, responding to slowing demand and high inventories at dealerships.
Impact of US EV Market Changes
Since President Donald Trump's spending bill earlier this month cut tax EV credits sooner than anticipated, analysts have warned that the U.S. EV market would underperform expectations this year.
Future of Battery Electric Vehicles
During the pause, Mercedes will run down EQ inventories in the U.S. and also supply cars made in its plant in Tuscaloosa, Alabama.
The company also said it would cut the base price of its EQE and EQS sedan and SUV models in the U.S. between 4% and 16% starting with the 2026 model year, excluding delivery charges.
Mercedes CEO Ola Kaellenius told reporters on Wednesday that despite the slower trajectory, he expected U.S. consumers to buy more battery electric vehicles (BEVs) over time.
Presenting the company's second-quarter results, he said: "We don't believe that the BEV demand in the United States goes to zero: we still think that the medium to long-term adoption rate of BEVs in the U.S. will creep upwards."
The carmaker said in February that it would make more petrol and diesel cars than EVs in its new product range. It said it was targeting 19 new combustion engine models and 17 BEVs by the end of 2027, after its BEV sales dropped by a quarter last year.
(Reporting by Alessandro Parodi and Amir Orusov. Editing by Matt Scuffham and Mark Potter)
