German auto major Mercedes-Benz is all set to go head on with Tesla in the futuristic electric cars.
The luxury carmaker is developing a battery-powered sedan about the size of its flagship S-Class to take on Tesla’s Model S for high-end electric-car buyers.
The new full-size sedan to be known as EQ S will be part of the Daimler unit’s push to introduce 10 all-electric vehicles by 2022, chief executive Dieter Zetsche said on Wednesday.
Reportedly the EQ line will be flanked by plug-in hybrid models offering a “totally different” battery range than today, while conventional vehicles will feature so-called mild hybrids with 48-volt technology in a shift away from pure combustion power.
“All vehicles will be electrified,” Zetsche was quoted in a report.
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Mercedes, the world’s best-selling luxury-car maker, had record deliveries and profit last year as it defended the global top spot against BMW’s namesake brand and Volkswagen’s Audi marque. But surging costs for the development of battery-powered cars and new digital offerings, plus possible trade barriers in the US and China – Mercedes’s two largest markets – threaten to weigh on profit margins.
“We have to increase flexibility in local production as the world, in general, has become more volatile,” Zetsche added.