Published by Global Banking & Finance Review®
Posted on July 30, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleMercedes-Benz is cutting EV prices and pausing some US deliveries due to decreased demand and high inventories, while anticipating future growth in BEV adoption.
By Alessandro Parodi and Amir Orusov
(Reuters) -Mercedes-Benz will pause deliveries of its EQ electric range to the United States and cut prices of new EQ models there, the carmaker said on Wednesday, responding to slowing demand and high inventories at dealerships.
Since President Donald Trump's spending bill earlier this month cut tax EV credits sooner than anticipated, analysts have warned that the U.S. EV market would underperform expectations this year.
During the pause, Mercedes will run down EQ inventories in the U.S. and also supply cars made in its plant in Tuscaloosa, Alabama.
The company also said it would cut the base price of its EQE and EQS sedan and SUV models in the U.S. between 4% and 16% starting with the 2026 model year, excluding delivery charges.
Mercedes CEO Ola Kaellenius told reporters on Wednesday that despite the slower trajectory, he expected U.S. consumers to buy more battery electric vehicles (BEVs) over time.
Presenting the company's second-quarter results, he said: "We don't believe that the BEV demand in the United States goes to zero: we still think that the medium to long-term adoption rate of BEVs in the U.S. will creep upwards."
The carmaker said in February that it would make more petrol and diesel cars than EVs in its new product range. It said it was targeting 19 new combustion engine models and 17 BEVs by the end of 2027, after its BEV sales dropped by a quarter last year.
(Reporting by Alessandro Parodi and Amir Orusov. Editing by Matt Scuffham and Mark Potter)
Mercedes-Benz will pause deliveries of its EQ electric range in the US and cut prices of new EQ models by 4% to 16% starting with the 2026 model year.
The company is responding to slowing demand for electric vehicles in the US, exacerbated by changes in tax EV credits.
CEO Ola Kaellenius stated that he expects U.S. consumers to buy more battery electric vehicles over time, despite the current slowdown.
During the pause, Mercedes will run down EQ inventories in the US and supply cars made in its Tuscaloosa, Alabama plant.
The company plans to produce more petrol and diesel cars than EVs, targeting 19 new combustion engine models and 17 BEVs by the end of 2027.
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