With the market just taking off and taking its first steps, there are already electric cars that are more profitable than their combustion counterparts. It is not only a matter of getting a higher profit from the units sold. It is already more profitable to produce some electric models than diesel or gasoline versions.
EQE and Class E, head to head. This is what they have announced from Mercedes. His Mercedes EQE (which we talked about in our Mercedes Vision EQXX test) is already more interesting to produce than the Mercedes E-Class. Harald Wilhelm, a member of the brand’s board of directors, has recognized this.
“We have been selling the Mercedes-Benz EQE for about a quarter and we can already say that the profit margin of the EQE is at the same point as that of the E-Class”, the manager assured InsideEVs. And the Mercedes EQE is not the only one, it announces that the EQS is close to doing the same with the S-Class of the Germans.
More expensive. Much more expensive, in fact. From Motorpasión they point to a very specific fact to understand why this Mercedes EQE is as profitable as a Mercedes E-Class: at its starting price it costs 18,228 euros more than its combustion counterpart. A strategy that most brands are opting for.
In recent days we have seen how Tesla has announced a price increase in its Tesla Model 3 (in Spain only the base version is included in the Moves III Plan), BMW or Mercedes itself had already warned and in our review of the cars cheapest electric of the moment, we have also verified it in a recent update.
But it’s big news. That the Mercedes EQE is, for the moment, one of the few electric cars as profitable as its combustion brother does not detract from its importance. Keep in mind that the Mercedes E-Class is a well-established model on the market and that, however, the EQE has only been selling for a quarter, as Harald Wilhelm emphasizes.
In addition, although the sale of electric cars grows in Mercedes, the truth is that the registrations of these models are still very low compared to those of combustion. According to data published by the company itself, in the second quarter they sold 487,100 vehicles, of which 25,200 units were pure electric.
Regardless of its higher retail price, the fact that the Mercedes EQE is just as profitable as the E-Class and the EQS is about to do the same with the EQS shows that they can achieve similar benefits despite their fixed costs are much higher, since fewer units are produced.
a sign of hope. At the moment, most of the electric vehicles manufactured are less profitable than combustion vehicles or are even produced at a loss. But among these latest models is, for example, the Ford Mustang Mach-E, which, as a victim of the supply chain, loses money with each unit.
Of course, Ford’s best-selling electric has been profitable until an unforeseen rise in prices has turned the situation around. A photograph that they already see with good eyes from General Motors, who are also considering a return to Europe.
just the beginning. The performance of Mercedes’ electric sedans is just the beginning of how much manufacturers can earn from the electric car. They have shown that a higher price has led to increased profits, even though their registrations have plummeted, especially in Europe.
The Mercedes EQE data anticipate another reading. Mercedes goes it alone in its manufacture of electric cars, but taking into account that we have been experiencing a standardization of the market for years, how long will it take for large groups such as Volkswagen or Stellantis to take real advantage of electric cars?