Mercedes EQ dispels Tesla shadow

Mercedes-Benz has laid careful plans for the introduction of its new electric SUV, the Mercedes-Benz EQC (pictured). But as careful as the prestige manufacturer has been, there is no escaping comparison with Tesla, the dominant brand to date in the global EV market.

In the lead-up to the premiere of the Mercedes-Benz EQC, journalists posed a number of questions to Ola Källenius concerning the troubled Californian start-up which has had the EV field all to itself until now. Källenius, the company's Head of Group Research & Mercedes-Benz Cars Development, was ready to acknowledge Tesla's head start in the market, but also studiously avoided supplying the rival too much oxygen.

When asked whether the existence of Tesla had been a catalyst for Mercedes-Benz to jump on the EV bandwagon – theoretically bringing forward the implementation of the company's EV strategy by years – Källenius cautiously replied in the affirmative.

“I think there is no doubt that we are on a journey toward zero-emission mobility,” Källenius replied.

“If individual players in the market make a move to create the buzz, of course that can accelerate a market development.

“But I think that we're in a situation now, with regard to electric mobility and let's say the road to zero-emission mobility as a whole, that a snowball has been thrown, and an avalanche is coming down the mountain.

“We're all going to go there. And whether that happens a few months earlier or later, maybe it's not that big of a deal.”

Källenius was also questioned concerning the Benz EQ philosophy of electric performance. A similar question was put to Jaguar when that brand introduced the I-PACE, Jaguar's own electric SUV. Would EQ engage in a power struggle with Tesla?

“If you want to [build] a great car, it's a little bit like the decathlon,” he replied. “If you want to win the Olympic gold medal in the decathlon it's not enough to be good in just one discipline. You can have a few disciplines where you're really good, but you really need to be a good all-rounder. That is how we view this car [EQC]; it's the sum of all parts that makes it a Mercedes, a real Mercedes.

“And for people that are looking for this combination of performance, serene ride experience, quality, digital features with MBUX, et cetera, we think they will come to us.”

Finally, Källenius was asked about the potential for EQ to post a profit in a short period of time – in marked contrast with the Tesla experience.

“We don't comment on profitability of individual cars or segments, but needless to say, we're going to have to make the growth into electric vehicles part of our profitable growth strategy. At the beginning of the electric journey the cost structures are higher than what we experienced previously on combustion-based cars, but as we get into volume and further develop the technology, especially on the battery side – we go from tens of thousands to hundreds of thousands of vehicles per year – we see a very good chance for that cost curve over the next [few] years to become much more attractive.

“So profitable growth must be part of the picture also for electric mobility.”