The automotive world is in the middle of a massive transformation, with electric vehicles (EVs) at the forefront of innovation. Luxury carmaker Mercedes-Benz has been one of the most vocal advocates of electrification, launching the EQ series to capture the premium EV market. Among them, the EQE sedan and EQE SUV were positioned as luxury electric alternatives to the iconic E-Class and mid-size SUVs.
However, in a surprising turn of events, Mercedes has announced that the EQE lineup is headed for early retirement, much sooner than industry experts expected. This move has sparked curiosity among EV enthusiasts, industry analysts, and Mercedes loyalists. Why would a brand that invested billions in EV development decide to phase out relatively new models?
Let’s dive into the reasons behind the EQE’s early exit, what it means for the luxury EV market, and how Mercedes is planning its next chapter in electrification.
The Mercedes EQE: A Quick Recap
Launched as part of Mercedes’ ambitious EQ lineup, the EQE was introduced in both sedan and SUV body styles to appeal to premium customers who were transitioning from traditional internal combustion engine (ICE) vehicles to EVs.
- EQE Sedan: A sleek, futuristic electric alternative to the Mercedes E-Class.
- EQE SUV: A versatile luxury EV for families and long-distance travel.
Both models shared Mercedes’ EVA2 electric architecture, offering:
- Driving ranges between 500–600 km (WLTP).
- Dual-motor all-wheel drive options for performance variants.
- A luxurious cabin with Mercedes’ hallmark MBUX Hyperscreen.
- Cutting-edge driver assistance and safety features.
On paper, the EQE sedan and SUV looked like strong contenders in the premium EV market. Yet, real-world sales figures and customer feedback told a different story.
Why the EQE Sedan and SUV Are Retiring Early
Mercedes-Benz’s decision to phase out the EQE lineup early is influenced by several key factors:
1. Changing EV Strategy at Mercedes
Mercedes has realized that dedicated EV models under the “EQ” sub-brand are creating confusion in the market. Customers are struggling to differentiate between the EQ range and traditional Mercedes models like the C-Class, E-Class, and GLC.
As part of its next-gen EV plan, Mercedes wants to integrate electric drivetrains directly into its core model lineup instead of offering them as standalone EQ variants. For example, the next-gen E-Class may come with both ICE and EV options, eliminating the need for a separate EQE.
2. Market Response and Sales Performance
While the EQE impressed critics with its futuristic design and luxury features, sales numbers did not meet expectations. Competing models such as the BMW iX, Tesla Model S, Audi Q8 e-tron, and Porsche Taycan captured larger market shares.
High pricing, combined with stiff competition, made it difficult for the EQE to establish itself as a segment leader.
3. Technological Shift: Moving Beyond EVA2
The EQE is built on Mercedes’ EVA2 platform, which is now considered outdated compared to newer electric architectures. Mercedes is currently developing the MMA (Mercedes Modular Architecture) and MB.EA platform, which promise better efficiency, higher range, and cost-effectiveness.
Instead of investing in upgrading the EQE, Mercedes has chosen to sunset the lineup early and focus resources on vehicles built on the next-gen EV platforms.
4. Consumer Preferences in the EV Market
Customer demand is rapidly shifting towards EVs with longer ranges, faster charging, and better affordability. The EQE, despite its premium features, struggled to fully meet these evolving expectations.
Additionally, many buyers prefer SUVs or crossovers over sedans. While the EQE SUV existed, it didn’t stand out enough in a crowded premium EV segment.
5. Mercedes’ Push Toward Simplification
Another reason behind this move is portfolio simplification. Mercedes wants to streamline its lineup, reducing overlaps and focusing on fewer, more impactful EVs. This helps the brand cut costs while still offering innovation in key segments.
What Happens to Existing EQE Owners?
For those who have already purchased an EQE sedan or SUV, there’s no need to panic. Mercedes will:
- Continue to provide after-sales support and service.
- Offer software updates and warranty coverage as promised.
- Maintain spare parts availability for years to come.
However, resale value may be impacted as discontinued models often depreciate faster. That said, the EQE could also become a collector’s item in the future, given its role as one of Mercedes’ first fully dedicated EV sedans and SUVs.
What’s Next for Mercedes EVs?
The early retirement of the EQE does not mean Mercedes is stepping back from EVs — quite the opposite. The brand is doubling down on electrification, but with a new strategy.
- Next-Gen E-Class EV: Expect the upcoming E-Class to debut with a full EV variant built on the MMA platform, offering better range and charging efficiency.
- Focus on MB.EA Architecture: From 2025 onwards, Mercedes will shift towards the MB.EA platform, designed specifically for luxury EVs.
- Streamlined Branding: Instead of EQ-specific names, future EVs may simply carry the familiar model names (like E-Class or GLC) with electric badging.
- Affordable EV Range: Mercedes is also developing smaller, more affordable EVs to compete in the growing mid-range market.
In short, Mercedes is preparing for a more unified and future-proof EV lineup.
Impact on the Luxury EV Market
The EQE’s early retirement raises some important implications for the broader EV segment:
- Shift Toward Integrated EVs: Other automakers may also follow Mercedes’ lead, phasing out separate EV sub-brands in favor of integrated lineups.
- Fierce Competition: Tesla, BMW, Audi, and Porsche continue to dominate the premium EV market, forcing Mercedes to rethink its approach.
- Customer Expectations: Buyers now expect EVs with 600+ km ranges, ultra-fast charging, and advanced tech at competitive prices.
Conclusion
The early retirement of the Mercedes EQE sedan and SUV marks the end of a short-lived chapter in Mercedes’ EV journey, but it also signals the beginning of a more strategic and integrated approach to electrification.
While the EQE may not have achieved the long-term success Mercedes envisioned, it played a crucial role in testing the waters of luxury EV adoption and providing valuable insights for the brand’s future lineup.
As Mercedes prepares to unveil its next generation of EVs, customers can expect vehicles that blend the timeless elegance of Mercedes-Benz with cutting-edge electric innovation — but without the confusing sub-brands.
The future of Mercedes-Benz is still electric, just with a different roadmap than before.