Mercedes will withdraw the EQE sedan from its 2027 product lineup in the US market. This decision comes after the model, once anticipated as an "electric E-class", failed to win over consumers.

Launched in the US for the 2023 model year, the EQE sedan was Mercedes' mid-range electric solution, designed to parallel the traditional E-class. A Mercedes representative confirmed to Car and Driver that the model will be discontinued from the 2027 model year. The plug-in hybrid Mercedes-AMG S63 E Performance and the Maybach EQS 680 SUV will also be phased out. However, the EQE SUV, EQS sedan, and EQS SUV lines will be temporarily retained.

Mercedes EQE electric sedan in the US. Photo: Mercedes-Benz of Henderson

Declining Sales

The luxury electric vehicle market is currently experiencing a sharp decline, leading to widespread dealer discounts, product discontinuations, and strategic adjustments.

In the US, combined sales for both the EQE sedan and SUV variants dropped 39% in 2024, reaching 11,660 vehicles compared to 19,104 the previous year. Specifically, in the first half of 2025, sedan sales continued to plummet by 74,5%, totaling only 2,300 units. This represents a disappointing outcome for a model that incurred significant development costs for its dedicated chassis and occupied a prime showroom position alongside the brand's best-selling sedan.

Signs of instability for the EQE emerged over a year ago, as electric vehicle market growth slowed. This coincided with consumer backlash against its overly aerodynamic, "bean-shaped" design language.

Mercedes electric vehicle lineup at a dealership in the US. Photo: Fletcher Jones Motorcars

Strategic Shift

Instead of continuing to invest in the EQE, Mercedes is shifting to electrify its already popular existing models. These include an electric C-class, priced between USD 80,000 and 110,000, along with electric CLA and GLC models being developed on the new 800 V MB.EA-M platform.

However, a standard E-class-based electric sedan has not been entirely abandoned. Test images from earlier this year indicate that the company is developing a new E-class-inspired electric sedan. This model will feature a more traditional design, shedding the futuristic lines that contributed to its predecessor's failure.

While electric vehicles offer economic efficiency, the concept of "economy" is difficult to reconcile with the luxury car segment, which is defined by opulence and extravagance. The EQE's failure stemmed from an excessive focus on aerodynamic metrics, overlooking the traditional grandeur and imposing presence that customers in this price range seek.

In the Vietnam market, the Mercedes EQE SUV has been sold since 2023, with prices starting from 3,999 billion VND. The vehicle is imported from the US. Mercedes does not disclose its sales figures for Vietnam.

My Anh (according to Autoblog)