The Challenge of Mercedes-Benz (and others) Against the Chinese Offensive in the BEV Segment
Ricardo Oliveira
Boosting EV demand in mass market. Evangelizing AI tools - Futurist with a track record of over 30 years in the automotive industry, pioneering electric mobility and new trends.
Recently, Mercedes-Benz AG announced a significant change in its development strategy for battery electric vehicles (BEV). This decision follows lower-than-expected sales for the brand's electric models, leading Mercedes-Benz to adjust its future plans. Let's analyze the implications of this change, the significant evolutions planned for the EVA2 platform, and the continued development of the MB.EA Small platform, reflecting a growing focus on more accessible BEVs.
Adjustments to the MB.EA Large Platform
Mercedes-Benz has confirmed that it is stopping the development of the MB.EA Large platform, which was intended to support the next generations of EQE and EQS models. Instead of developing a new platform, the brand has chosen to update the existing EVA2 architecture, which already serves the current EQE and EQS models. This decision aims to save between 4 and 6 billion euros, thus reducing the financial risk associated with new versions of its electric sedans.
Significant Evolutions in the EVA2 Platform
Despite the decision not to proceed with a new platform, the planned updates to the EVA2 are substantial. The new versions of the EQE and EQS will incorporate an 800-volt electrical architecture, new motors, and new batteries. These improvements are designed to increase range and reduce charging times, keeping Mercedes-Benz competitive in the electric vehicle market.
What about the MB.EA Small Platform?
Interestingly, while the development of the MB.EA Large has been halted, Mercedes-Benz is continuing with the development of the MB.EA Small platform. This platform will be the basis for the brand's D-segment BEV models (C-Class and GLC). This focus on mid-segment BEVs suggests a strategy oriented towards making electric vehicles more accessible, reflecting a trend in the BEV market that is entering the mass market. On the other hand, Mercedes-Benz will continue the development of the AMG.EA platform, intended for high-performance models, and the Van.EA platform for light commercial vehicles.
Combating Misinformation is Essential
It is essential that these changes are well understood and communicated clearly. Voices both inside and outside the automotive sector are suggesting that Mercedes-Benz is "giving up on electrics." However, this is far from the truth. The adjustment in the platform development strategy reflects an adaptation to the current market and a focus on ensuring that the brand's electric vehicles are financially viable and technically advanced.
In the coming months, it is expected that there will be a lot of misinformation as electric vehicles approach price parity with internal combustion vehicles and manufacturers adjust their electrification strategies. Media knows that news condemning an electric future guarantees controversy, visibility, and interaction on social media. Mercedes-Benz, like other legacy OEMs, is clearly committed to an electric future but is adapting its path to ensure sustainability and long-term success.
The Chinese Potential in the BEV Segment
The only question is whether this prudent strategy adopted by legacy OEMs will be sufficient to counter the Chinese offensive in the BEV segment. Chinese OEMs are developing their BEVs at a frantic pace and already have BEV models on the market equipped with innovative semi-solid-state batteries. According to Michael Dunne, China currently has the capacity to manufacture half of the 80 million vehicles produced annually worldwide, and by 2030, this capacity could rise to 75%. In 2024, China will export 6 million vehicles to more than 140 countries, surpassing Japan in global leadership. Brands like 比亚迪 , CHERY , and 吉利控股集团 are leading in various time zones, from Brazil to Australia. This Chinese advance, combined with unbeatable scale, cost, quality, and subsidies, poses a significant challenge to traditional manufacturers (Source).
In conclusion, Mercedes-Benz's strategy focuses on making BEVs more accessible and competitive while continuously improving existing technology to meet consumer expectations and market dynamics. However, the true test will be whether these measures will be sufficient to face the rapid rise and aggressive strategy of Chinese manufacturers in the global electric vehicle market.
Ricardo Oliveira
World Shopper | #GetReadyForTheFuture
#ElectricVehicles #ElectricMobility #Mercedes
+30k Followers | Father | Chief Love Officer | Co-Founder & CEO BOT4ALL | Robots for health, fitness, Hotels, Restaurants and Services | Data Science | Board Advisor Optimistic Plus | Entrepreneur | Keynote Speaker
6 个月Ricardo Oliveira as we both know the Chinese “invasion” is a huge threat to the EuropeanOEM’s BEV development. It is impossible to compete with the ones who already have more than 15 years of experience, leaders in battery production, technology, flexibility, adaptability and above all they are faster than Europeans! The only way to face Chinese Automotive BEV industry is to make join ventures for platforms, batteries and technology… European OEM’s already start that chapter!
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6 个月Um dos únicos apoios públicos ?? do Plug & Charge dando marcha ré
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6 个月Good summary Ricardo Oliveira. What’s your view… "will [it] be sufficient to face the rapid rise and aggressive strategy of Chinese manufacturers in the global electric vehicle market”?
EV Influencer ?? Electric Vehicle Writer & Editor ?? EVinfo.net ?? US Based
6 个月Insightful! Like all other OEMs, MB underestimated the need for charging and EV education. lots more of both are desperately needed