Mercedes Benz to move EQS production from USA to Germany

According to multiple sources, Mercedes-Benz is considering shifting the EQS production from its manufacturing facility in the USA to Germany. The step is said to take place in an effort to free up manufacturing capacity for the upcoming EQS SUV. 

Mercedes-Benz is said to move the production to Germany in the second half of this decade, ahead of the upcoming GLC EV’s production commencement. It is worth noting that the EQS SUV was the first all-electric Mercedes SUV to roll out from the brand’s USA manufacturing facility. Later on, the recently launched EQE SUV also joined the lineup.

As per various online reports, the production of the upcoming GLC EV could begin in the first quarter of 2026. Furthermore, reports suggest that the upcoming electric SUV — which is internally termed a ‘cash cow’ — could touch 50,000 sales in the first year from launch.

If the new GLC EV touches the 50,000 sales mark, that would be just double the sales of the EQS SUV. In Q3 2023, Mercedes-Benz managed to sell 3,700 units of the EQS SUV, which was an increase of 162 per cent over Q2 of 2022. However, since the EQS SUV was launched in the second quarter of 2022, the sales figures for YoY quarters can not be directly compared.

With the start of production in August 2022, the EQS SUV was the brand’s first electric model to be built in the USA. The USA is also the most important sales market for the large SUV, which is also available as an optional seven-seater. In the current year, 7,086 EQS SUVs have been sold in the USA.

Moving to the upcoming GLC EV, it is unlikely to carry the EQ name suffix that is currently seen on the entire electric range of Mercedes-Benz. The reason behind the decision to drop the EQ suffix is said to be the democratisation of electric vehicles. Secondly, the EQC, which is the first all-electric SUV from Mercedes-Benz, never gained enough traction due to its limited driving range. That was also one of the reasons why Mercedes-Benz did not introduce the model in the US market, which is currently led by Tesla in terms of sales.

Amit Saraswat: