Can new models revive Mercedes-Benz Korea’s EV sales?

Mercedes-Benz Group Chairman Ola Kallenius speaks during a press conference on Yeongjong Island in Incheon, Friday. Yonhap

Mercedes-Benz Korea faces the task of promptly reviving its electric vehicle (EV) sales with its pair of upcoming all-electric models — the CLA sedan and GLC SUV — as the iconic luxury carmaker loses its electric market share to Tesla and BMW.

Mercedes-Benz still maintains its position in Korea's super-luxury vehicle market with its flagship S-Class models and the carmaker’s Maybach sub-brand.

In the EV market, however, the carmaker is struggling with sharply declining sales, falling behind emerging EV rivals as well as its longtime competitor, BMW Korea.

Meanwhile, Tesla, one of the fastest growing carmakers in Korea, reported outstanding growth in auto sales this year.

According to data from the Korea Automobile Importers & Distributors Association (KAIDA), Tesla sold 47,962 EVs for the first 10 months combined here, up 92.8 percent from a year earlier, on the strong popularity of its Model Y mid-size electric SUV.

BMW Korea's sales reached 9,454, up 15.6 percent, during the same period. Despite the robust sales growth of its rival carmakers, Mercedes-Benz Korea sold just 2,945 EVs between January and October.

The carmaker’s EV sales reached their peak at 11,351 in 2023, but the figure has since declined sharply, largely after the carmaker was involved in a nationwide EV fire scandal sparked by an unconfirmed fire involving its EQE electric sedan in August 2024.

Last week, Mercedes-Benz Group Chairman Ola Kallenius shared its renewed electrification vision during a rare visit to Korea, and pinned hopes on the two upcoming electric models driving its EV sales growth here.

Mercedes-Benz Group Chairman Ola Kallenius introduces the carmaker's new strategic electric models during a press conference on Yeongjong Island in Incheon, Friday. From left are the all-new electric CLA sedan and the all-new electric GLC SUV. Yonhap

The all-new electric GLC SUV is garnering particular attention as the carmaker’s next major EV sales driver. The vehicle made its debut in September at Europe’s largest auto fair, the IAA Mobility 2026 and is scheduled to be available for sale in Korea sometime in the latter half of next year.

The all-new electric CLA sedan, which will be launched here in the first half of 2026, is also expected to rev up the carmaker’s falling EV sales, as the vehicle’s compact segment is in high demand.

“Even if Mercedes-Benz Korea has suffered lukewarm EV sales for the past few years, the upcoming launch of the two flagship electric models will help the carmaker achieve its sales recovery to some extent, as both cars are in the segment with strong demand from local customers,” an official from the auto industry said.

Mercedes-Benz Korea plans to reshape its sales strategy with the introduction of what it calls the “Retail of the Future” direct sales model next year.

Under the system, Mercedes-Benz will directly control the price of its vehicles. As a result, the role of its conventional dealerships will shrink and they will no longer hold any promotional activities with discount campaigns — a move some critics say will lead to an overall price increase for customers.