EQA 250 causes headaches for Mercedes-Benz Korea

New EQA manufactured by Mercedes Benz / Courtesy of Mercedes-Benz Korea

By Kim Hyun-bin

Mercedes-Benz Korea is having a major headache with its new electric vehicle (EV) called the New EQA 250, because the Korean government has yet to categorize the automobile as an EV, thus excluding prospective buyers from receiving a reduction in acquisition taxes. The vehicle's low miles per charge rate is another cause for concern.

According to industry sources, the Mercedes Benz EQA EV, which was released in mid-July, has yet to be included in the Ministry of Trade, Industry and Energy's designated EV category which was updated last month. The exclusion exempts buyers of the EQA from receiving a 1.4 million won eco-friendly vehicle tax benefit.

To be categorized as an EV by the ministry, a vehicle needs to have a minimum 5.0km/kWh energy consumption rate for a small sedan and over 5.0km/kWh for mid to large sedans with a minimum driving range of 150km on a single charge.

The EQA's energy consumption rate is 4.1km/kWh and has a driving range of 306km, which are enough to be categorized as an EV. However, the trade ministry only updates the notice once a month and the EQA is expected to be listed as an EV next month.

Industry watchers believe Mercedes-Benz decided to release the EQA ahead of the ministry's approval to have a better chance of receiving fixed allocations of the government's EV subsidies.

The central and local governments have been issuing subsidies for EV buyers, which have enticed prospective customers to purchase the eco-friendly vehicles. But once the subsidies run out, the merits of purchasing an EV also disappear as there are no discounts. A shortage of charging infrastructure within the country is another downside factor.

“The release date for the vehicle took into consideration diverse market conditions,” a Mercedes-Benz Korea official said. “The inclusion in the trade ministry's EV notice is under negotiation so it is difficult for us to comment at this point in time.”

The problem surrounding the Mercedes-Benz EQA does not stop here. EQA's stated miles per charge overshoot by 28 percent those determined by the Ministry of Environment in tests of the vehicle, emerging as a grave concern for local customers who have pre-ordered the vehicles.

Mercedes-Benz initially announced the maximum driving range for the EQA at 426 km per charge. However, the environment ministry found that it comes out 302.76km in ordinary temperatures and 204.2km in low temperature environments.

This is much lower than Hyundai Motor's Kona EV with 405.6km and Kia Niro EV with 385km.

“Each country differs in the EV mileage testing standard, so there is a difference in the official accredited mileage. Local testing is much stricter than U.S. and European mileage standards, so it generally comes out short,” a Mercedes-Benz Korea official said.