Canadian orders unaffected by Mercedes-Benz’s U.S.-dedicated production stop.
U.S. EV sales declined; EQE and EQS deliveries dropped 35% and 32% respectively in H1 2025.
Edmunds data shows deep discounts and slow dealer turnover for Mercedes electric models.
Mercedes-Benz has temporarily stopped accepting new orders for its EQS and EQE electric models in the United States, with domestic production scheduled to cease on September 1. The German automaker cited “current market conditions” for the decision but did not provide a timeline for resuming orders.
Mercedes-Benz Lowers Prices on EQS and EQE Electric Vehicles
The EQS SUV and EQE crossover are currently assembled at Mercedes’ plant in Vance, Alabama. While production for the U.S. market will end, Mercedes will continue building the EVs at the site for export markets such as Canada. Gasoline-powered models such as the GLS SUV and GLE crossover will remain in production at the same facility.
The U.S. electric vehicle market has experienced slower growth in 2025, with demand impacted in part by the upcoming expiration of federal tax incentives. Wholesale shipments of the EQS SUV declined 32% in the first half of the year to 2,318 units, while deliveries of the EQE crossover dropped 35% to 4,676, according to Automotive News Research & Data Center estimates.
Between Q1 and Q2 2025, Benz Canada delivered 935 EVs. In 2024, the German automaker sold all of 3,257 EVs, thus we can assume that demand is also dropping here.
To manage inventories, Mercedes discounted the EQE sedan by 18% and the EQS sedan by 15% in the second quarter, based on data from Edmunds. Despite these measures, dealers took an average of 113 days to sell an EQE sedan and 87 days for the EQS sedan. By comparison, the brand’s overall inventory turnover averaged 72 days.
As part of its export strategy, Mercedes will continue to benefit from tariff exemptions under trade agreements between the U.S. and the European Union. Analyst Michael Dean noted the exemptions apply to vehicles exported from the Alabama plant, where approximately 60% of production is sent overseas.
Source: Automotive News
