The electric vehicle market is experiencing a paradoxical situation where global sales are booming, yet legacy automakers are struggling with their premium EV offerings. Mercedes’ electric G-Class SUV, Ferrari’s second EV model, and Porsche’s Taycan have all faced disappointing sales and depreciation challenges.
The high price tags of these premium EVs are a significant deterrent for customers. The all-electric Mercedes G-Wagen costs a staggering $162,000, while the upcoming full EV Range Rover is expected to retail for over $180,000. According to Peter Wells, a business professor at Cardiff University, “Large premium EVs require very large batteries to match the performance of typical ICE versions, and this increases their price.”
Mercedes sold only 1,450 G-Class G580 off-roaders in Europe through April this year, significantly below the 9,700 sales of the cheaper combustion variants. The company’s reliance on the US market is also uncertain due to potential tariffs of up to 50% on imported cars from Europe.
The trend is not limited to Mercedes. Ferrari has delayed its second EV model until at least 2028, while Porsche has cut back its EV plans amid soft sales of its electric Macan SUV and Taycan models. Audi has discontinued its Q8 E-tron due to a “global decline in customer orders in the electric luxury class segment.”
Experts attribute the struggles of legacy automakers to their focus on premium EVs rather than more affordable, mass-market models. According to Dale Harrow, chair of the Intelligent Mobility Design Center at London’s Royal College of Art, “The same tech is basically in all electric vehicles. So, for the first time, there’s no real guarantee that spending a lot more money is going to buy a better product.”
In contrast, Chinese automakers like BYD are successfully offering EVs priced under $25,000, making them more accessible to the masses. The International Energy Agency predicts that global EV sales will surpass 20 million in 2025, with emerging markets in Asia and Latin America driving growth.
As the EV market continues to evolve, legacy automakers must adapt their strategies to focus on more affordable, mass-market models rather than relying on premium EVs with gimmicky features. By doing so, they can drive real adoption and encourage the spread of viable charging networks.
