Mercedes Challenges Tesla’s Electric Vehicle Dominance with Extended Range
Mercedes-Benz Group AG has revealed an electric vehicle that surpasses all Tesla Inc. models currently available, marking a significant step in the German luxury car manufacturer’s efforts to rival Elon Musk.
The company unveiled a near-production concept of its CLA sedan, which is estimated to go more than 750 kilometers (466 miles) on a single charge, beating Tesla’s facelifted Model 3. The car is Mercedes’ first to be based on its future electric vehicles and to feature a battery system. which can increase the range by 400 kilometers with just 15 minutes of charging.
“We’re taking it to the next level,” Mercedes chief technology officer Markus Schäfer said Sunday in an interview ahead of the IAA auto show in Munich. “This car is extremely important for innovation reasons and pushes the limits of what we can do with a production car.”
Mercedes is under pressure to strengthen its product range after disappointment in China forced the company to cut prices on some of its electric models.
On Saturday, BMW AG unveiled its next-generation electric car, a stylish coupe with a digital screen projected across the entire width of the windshield. Both BMW’s prototype and Mercedes’ future electric car are scheduled to enter production in the middle of the decade.
Mercedes is trying to fend off Tesla and boost sales in China, where customers are increasingly choosing domestic brands such as BYD Co. and Nio Inc., which have been better at building electric cars with software tailored to local tastes. The company aims to sell only electric cars as far as possible by the end of this decade and plans to establish eight battery factories with partners.
The CLA concept lacks the curved roofline of the brand’s EQS and EQE sedans. While their low roof makes them more aerodynamic and increases their range, the design also reduces headroom in the rear seats. This is a disadvantage in the Chinese market, where wealthy customers often prefer to be chauffeured.
CEO Ola Källenius has outlined a strategy to boost margins by focusing resources on high-end vehicles such as Maybach limousines, AMG performance cars and G-Wagon SUVs, while moving away from less profitable entry-level models such as the compact A-Class. .
The new CLA concept shows how the manufacturer is trying to defend its position in the entry-level luxury segment, where Mercedes is trying to attract younger customers by competing with volume manufacturers such as Volkswagen AG and Toyota Motor Corp.
