Mercedes-Benz Korea turns to affordable CLA EV amid falling sales

Mercedes-Benz Korea is betting that a more affordable all-electric CLA sedan will revive its flagging electric vehicle (EV) business in the country, as Tesla and Chinese rivals gain ground in one of Asia’s most competitive imported-car markets.

The German luxury automaker introduced the all-new electric CLA and GLC on Monday, with the entry-level CLA coupe-type sedan priced from 52.9 million won ($40,000).

The pricing marks a major shift from Mercedes-Benz’s traditional premium positioning, placing its new electric sedan closer to mass-market alternatives, including Tesla’s Model Y, which starts at 49.99 million won in Korea. The Model Y was the country’s best-selling vehicle last month, largely due to its competitive pricing.

The launch of the price-competitive CLA comes as Mercedes-Benz struggles to rev up sluggish EV sales.

The company’s electric car lineup, previously a major source of growth, has lost momentum following the August 2024 fire involving a Mercedes-Benz EQE sedan in an underground parking garage in Incheon.

Mercedes-Benz’s EV sales in Korea reached a peak of 9,184 units in 2023, but have yet to recover from the slump following the 2024 fire incident, falling from 4,506 units in 2024 to 2,118 last year.

Mercedes-Benz Korea is experiencing stagnant EV sales despite the overall market growth. Imported EV registrations in Korea totaled 91,253 units in 2025, accounting for 29.7 percent of all imported passenger cars, according to the Korea Automobile Importers & Distributors Association.

Tesla Korea sold 59,916 vehicles across its lineup that year, up 101.4 percent, while BYD Korea registered 6,107 vehicles last year, the first year of the Chinese firm's passenger car debut here.

That divergence poses an escalating challenge to Mercedes-Benz as well, as the new EV sales landscape proves a premium brand identity alone does not translate into solid sales growth.

Tesla has built volume through aggressive pricing and a concentrated lineup, while BYD is using competitively-priced models to establish a foothold. Mercedes-Benz must now defend its luxury credentials and revive EV sales by reaching customers who are increasingly sensitive to price.

The CLA is central to that effort. Mercedes-Benz Korea said the model had received about 1,000 preorders since September, ahead of customer deliveries scheduled to begin in mid-November.

The company is also targeting buyers seeking a larger vehicle with the all-electric GLC, its first fully electric version of the popular SUV. Its price starts from 90 million won. The vehicle has attracted more than 2,500 preorders since July.

But as the preorder figures do not guarantee a sustained recovery, Mercedes-Benz Korea will need to turn initial interest into registrations in a market where Tesla has established a formidable lead and Chinese manufacturers are expanding their presence.

“Sales of the all-electric CLA will be a key test of whether the carmaker’s revamped EV strategy can succeed," an auto industry official said.