Mercedes-Benz is taking a bold step to consolidate its flagship models by unifying the S-Class and EQS under one nameplate. This strategic move aims to bring parity between its internal combustion engine (ICE) and electric vehicle (EV) offerings, echoing BMW’s approach with the 7 Series and i7 models. The decision underscores Mercedes-Benz’s commitment to creating a cohesive brand identity while adapting to the evolving automotive landscape.
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The New Era of Mercedes-Benz S-Class
Unified S-Class: Two Powertrains, One Identity
By 2030, the Mercedes-Benz S-Class will be available in both ICE and EV versions, replacing the EQS as the brand’s premier electric sedan. Mercedes-Benz CEO Ola Källenius confirmed that this new generation of the S-Class will feature nearly identical exterior and interior designs for both powertrains, ensuring a unified brand image. However, the two versions will be built on different platforms: the EV variant will use the upcoming MB.EA Large platform, while the ICE version will be based on an advanced iteration of the current MRA architecture.
- Key Highlights:
- ICE and EV versions to share identical design.
- EV version to be built on MB.EA Large platform.
- ICE version to continue on an updated MRA architecture.
Sales Challenges Prompt Strategic Realignment
Mercedes-Benz’s decision to merge the S-Class and EQS comes as a response to declining sales of both models. In early 2024, S-Class deliveries dropped by 37%, prompting the automaker to reduce production. Although EV sales increased by 73% in 2023, they still accounted for only 11% of global sales, well below the 20% target. These figures have led Mercedes to reassess its EV strategy, delaying its goal of 50% electric and plug-in hybrid sales from 2025 to 2030.
- Sales Performance:
- S-Class deliveries down by 37% in Q1 2024.
- EVs accounted for only 11% of total sales in 2023.
- Mercedes revises its 50% electric sales target to 2030.
Investments in Both ICE and EV Technologies
Despite the challenges, Mercedes-Benz remains committed to both ICE and EV advancements. The company plans to invest up to €14 billion in 2024 to enhance digitalisation, electromobility, and combustion engine technologies. While rumors suggested a shift in focus from the MB.EA Large platform, Källenius reaffirmed the company’s dedication to new EV developments, which will underpin the next-generation S-Class EV and other models like the E-Class, GLE, and GLS.
- Investment Focus:
- €14 billion investment in R&D for 2024.
- Commitment to MB.EA Large platform for future EVs.
- Continued development of advanced ICE technologies.
Upcoming Model Updates: EQS and S-Class Facelifts
Before the unified S-Class makes its debut, both the current EQS and S-Class will undergo significant updates. In late 2025, the EQS will transition to an 800V electric architecture, enabling faster charging and extended range. The S-Class will receive a facelift in 2026, featuring a refreshed design, upgraded MBUX Superscreen, and enhanced autonomous driving capabilities.
- Key Updates:
- EQS to receive 800V architecture in late 2025.
- S-Class facelift planned for 2026 with new tech and design.
Final Take Away: Mercedes-Benz Adapts to a Changing Market
Mercedes-Benz’s decision to merge the S-Class and EQS represents a strategic shift towards a more unified and flexible approach to luxury vehicles. By offering both ICE and EV versions under a single nameplate, the brand is positioning itself to better compete with rivals like BMW while adapting to the evolving demands of the global market.
Stay tuned for more updates on Mercedes-Benz’s upcoming S-Class models as the brand continues to innovate and redefine luxury in the automotive world.