Mercedes-Benz can boast that it has given the world the first production car. It has long been an innovator, a relentless pursuer of quality and engineering.
Many consumers say that owning a Mercedes-Benz is a sign that they have finally made it in life. It is considered one of the most ambitious brands among larger car manufacturers – even by buyers of luxury cars who prefer cars from its competitors, according to research by industry recording firm AutoPacific.
But the car world is changing. Governments and some consumers are pushing for electric vehicles, and companies are rushing to develop new forms of transportation, including self-driving cars.
Some of these new technologies, such as electric trains, challenge Mercedes-Benz’s traditional strengths. After all, one of the things that the three-pointed star was known for was its excellent engine technology.
According to Mercedes-Benz, some viewers in the industry are a little slower than some to adapt to the electrification challenge. Mercedes-Benz said in early 2021 that it plans to delay the launch of its EQC electric sports utility vehicle in the United States for the foreseeable future, even though SUVs are the most popular light vehicle in the US market today. The company said it still plans to release its electric sedan.
According to some analysts, the German luxury brand and its traditional counterparts, such as BMW and Audi, are also facing challenges in the growing and extremely important Chinese market, such as by Tesla and Chinese manufacturers such as Li Auto. Historically, the three major German brands controlled 60% of the luxury market in China, but the share eroded as Tesla continued to open new stores in China, according to a report by Piper Sandler.
Mercedes-Benz has heritage, prestige, talent and a lot of experience in its favor. But the automotive industry plays a big role.