Mercedes-Benz can boast that it gave the world the world’s first production car. It has long been an innovator, a relentless pursuit of quality and technical excellence.
Many consumers say that owning a Mercedes-Benz is a sign that they have finally made it into their lives. It is considered one of the most ambitious brands among larger car makers – even by luxury car buyers who prefer cars from its competitors, according to research from industry research firm AutoPacific.
But the automotive world is changing. Governments and a few consumers are pushing for electric vehicles, and companies are racing to develop new modes of transportation, including self-driving cars.
Some of these new technologies, such as electric powertrains, challenge Mercedes-Benz’s traditional strengths. One of the things the three-pointed star was known for was its superior engine technology.
According to some industry watchers, Mercedes-Benz has adapted to the electrification challenge a little more slowly than others. Mercedes-Benz said in early 2021 that it planned to delay the introduction of its EQC electric SUV in the United States for the foreseeable future, even though SUVs are the most popular light car in the U.S. market today. The company said it still plans to market its electric sedan.
The German luxury brand and its traditional competitors such as BMW and Audi also face challenges in the growing and all-important Chinese market of electric starters such as Tesla and Chinese manufacturers such as Li Auto, according to some analysts. Historically, the three major German brands have owned 60% of the luxury market in China, but that share is eroding as Tesla continues to open new stores in China, according to a report by Piper Sandler.
Mercedes-Benz has heritage, prestige, talent and a lot of experience to its advantage. But the automotive industry makes some big pivotal points.