(Bloomberg) —
Mercedes-Benz Group AG debuted an electric version of its top-selling vehicle to regain momentum for its luxury push after several earlier battery-powered models stumbled.
Unveiled at the Munich auto show in September, the GLC sport utility vehicle competes with BMW AG’s iX3 and Tesla Inc.’s Model Y. It gets as much as 713 kilometers (443 miles) of range and will go on sale next year.
The GLC is Mercedes’s global bestseller, accounting for about a fifth of deliveries and proving especially popular in Europe and China. Electrifying the model is a critical test of whether the German manufacturer can bring its well-heeled customers along in the transition away from combustion engines. After sluggish demand for its initial EQS and EQE electric sedans, Mercedes is betting the GLC’s more conservative styling and updated technology will convince buyers.
The new GLC “is the result of an intensive dialog with our customers,” said Mercedes sales chief Mathias Geisen. The vehicle has “everyday practicality, high range and powerful driving dynamics.”
The SUV boasts the company’s largest-ever display — a 99.3-centimeter (39.1-inch) version of its MBUX Hyperscreen — and comes with customizable ambient lighting and a panoramic roof. It’s built on Mercedes’s latest EV platform.
Shareholders will be watching closely. Mercedes’ stock has lagged that of BMW this year, with investors rewarding the Munich-based rival’s Neue Klasse line and stronger EV sales.
“Incrementalism isn’t going to get you to the promised land,” Bernstein analyst Stephen Reitman said ahead of the unveiling, noting BMW’s more aggressive EV push.
Mercedes is counting on the GLC to undo past missteps. The company had to heavily discount the EQS — launched in 2021 as its electric flagship — to prop up poor sales in China and the US. The electric G-Class also failed to gain traction, despite features including one that lets it spin 360 degrees.
Those setbacks have raised questions about the viability of Chief Executive Officer Ola Källenius’ strategy to push Mercedes further upmarket while scaling back cheaper models. The approach has boosted revenue per vehicle but left the company more exposed to weak demand for pricier EVs.
There are signs of improvement. The automaker’s electric CLA sedan has drawn favorable reviews and Mercedes has added an extra shift at its Rastatt, Germany plant to meet demand. And while rival Porsche AG has stumbled in rolling out electric sports cars, Mercedes recently set an endurance record with a late-stage concept that will underpin a battery-powered AMG performance model that will go on sale in 2026.
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