Mercedes Unplugs the Future: Why the EQE Sedan and SUV Are Headed for Early Retirement

By Himanshu Kumar

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Mercedes Unplugs the Future: Why the EQE Sedan and SUV Are Headed for Early Retirement

In the fast-evolving world of electric vehicles (EVs), even the most iconic automakers aren’t immune to missteps. Mercedes-Benz, a brand long associated with engineering excellence and luxury, is now quietly pulling the plug on two of its most recent EV offerings—the EQE Sedan and EQE SUV. These models, introduced with great fanfare just a few years ago, are now slated for discontinuation by 2026. The decision marks a significant shift in Mercedes’ electrification strategy and offers a glimpse into the challenges legacy automakers face in the race toward an all-electric future.

⚡ A Promising Start That Fizzled

When Mercedes launched the EQE lineup, it was positioned as a more accessible alternative to the flagship EQS. The EQE Sedan debuted in 2021, followed by the SUV variant in 2022. Both vehicles were built on the brand’s dedicated EV platform and featured futuristic interiors, advanced driver-assistance systems, and the signature Hyperscreen dashboard. On paper, they had all the ingredients of a hit.

But reality didn’t quite match expectations. Despite their premium features, the EQE models struggled to resonate with buyers. In the U.S., combined sales of the EQE Sedan and SUV fell 39% year-over-year, totaling just 11,660 units in 2024. That’s a stark contrast to the booming demand for EVs from competitors like Tesla and BMW, whose offerings often deliver better range and more compelling price points.

🔋 Range Anxiety and Pricing Woes

One of the biggest criticisms leveled at the EQE models was their underwhelming range. The AMG EQE Sedan offered just 220 miles on a full charge, while the SUV variant managed around 230 miles. In a market where consumers expect 300+ miles as standard, these figures were disappointing—especially given the vehicles’ hefty price tags.

Starting at around $65,000 and climbing to nearly $97,000 for top trims, the EQE models were priced in the luxury bracket but didn’t deliver the performance or efficiency to justify the cost. Add to that a crowded EV market and increasingly savvy consumers, and it’s easy to see why Mercedes decided to pivot.

🔄 Strategic Realignment: What’s Next?

Rather than doubling down on the EQE, Mercedes is opting for a strategic overhaul. The EQE Sedan and SUV will be “indirectly replaced” by upcoming electric versions of the C-Class and GLC, which are expected to debut with the brand’s new 800V architecture. This next-gen platform promises faster charging, improved range, and better overall efficiency—key factors in winning over EV buyers.

Interestingly, Mercedes is also moving away from its standalone “EQ” branding. Future electric models will integrate more seamlessly into the existing lineup, with names like “C-Class Electric” or “GLC Electric” replacing the EQC-style nomenclature. This shift reflects a broader industry trend toward normalizing EVs as part of mainstream offerings rather than treating them as niche products.

🧠 Lessons Learned: EVs Need More Than Luxury

The early retirement of the EQE models underscores a critical lesson for automakers: luxury alone isn’t enough. Today’s EV buyers are looking for a blend of performance, range, tech, and value. While Mercedes nailed the luxury aspect, it fell short on the others.

This isn’t the first time a legacy automaker has had to recalibrate its EV strategy. Ford recently scaled back production of its F-150 Lightning, and GM delayed several EV launches to focus on profitability. The message is clear: building successful EVs requires more than just slapping a battery into a premium chassis.

🚘 Looking Ahead: A Smarter, Sleeker Future

Mercedes isn’t abandoning its EV ambitions—far from it. The brand plans to launch an all-electric E-Class EQ sedan in 2027, featuring a more traditional “three-box” design and a longer wheelbase aimed at status-conscious buyers. With lessons learned from the EQE experiment, this next wave of EVs is expected to be more competitive, both in terms of performance and pricing.

The move also aligns with Mercedes’ broader goal of becoming carbon-neutral by 2039. By refining its EV lineup and investing in more efficient platforms, the automaker is positioning itself for long-term success in a market that’s still finding its footing.

🏁 Final Thoughts

The quiet exit of the EQE Sedan and SUV may seem like a setback, but it’s actually a sign of strategic maturity. Mercedes-Benz is acknowledging what didn’t work and making bold moves to course-correct. In a space as dynamic as EVs, agility is just as important as innovation.

As the brand shifts gears, consumers can expect a new generation of electric Mercedes vehicles that are smarter, sleeker, and better aligned with market demands. The EQE may be unplugged, but the future of Mercedes EVs is anything but dim.

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