Mercedes-Benz has paused new orders in the U.S. for several of its top-selling electric vehicles, citing ‘current market conditions’ as the reason for the move, and has not provided a timeline for when it will begin accepting orders. The company has already closed the orders for both sedan and SUV versions of the EQS and EQE models in the U.S.
“As a company with global activities and more than 30 plants worldwide, including in Alabama and South Carolina, Mercedes-Benz continuously optimizes its production network and uses its high flexibility to react quickly to market conditions,” a spokesperson said.
Additionally, Mercedes noted that dealer inventories are currently high and consumer demand remains low.
Mercedes will also cease manufacturing the EQS and EQE SUV models at its Vance, Alabama, plant starting September 1 for the U.S. market. However, the company will continue manufacturing these electric vehicles at the same facility for export to international markets. While U.S. dealers can no longer place new orders for the EQS or EQE models, some units are still available for purchase. Earlier this month, Mercedes reduced prices on its remaining EV inventory by as much as $15,000.
According to Kelley Blue Book, citing a company spokesperson, the EQB is being discontinued as scheduled and will no longer be sold in the U.S. or Canada after the 2025 model year. While the company attributed the decision to current market dynamics, it also aligns with the upcoming expiration of the federal EV tax credit in the U.S. at the end of September.
In its Q2 earnings report released on Wednesday, Mercedes reported a nearly 25% year-over-year decline in battery electric vehicle (BEV) sales, falling from 45,843 units to 35,027. Earlier this year, the automaker unveiled a major strategic shift that places greater emphasis on combustion engine models over EVs in its future lineup. As part of this new direction, Mercedes plans to introduce 19 new petrol and diesel vehicles along with 17 new BEVs by the end of 2027.
The shift comes in response to a sharp decline in electric vehicle sales, prompting the company to reassess its electrification strategy.
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