Daimler AG launched the hybrid "sibling" of its
flagship Mercedes-Benz S-Class premium sedan on Thursday, putting the challenge
to industry leader Tesla Inc as electric vehicle sales take off. The EQS is the
first in a series of Mercedes-Benz cars, to be designed entirely on an electric
vehicle platform. In August, it will be available in Europe and the United
States, with China following in January. Last year, the sales of electric and
plug-in hybrid cars in the European Union nearly tripled to over 1 million,
accounting for more than 10% of total sales.
"With this car, we set the bar really high,"
Daimler CEO Ola Källenius told reporters. "In this market, customers
demand a mix of hi-tech creativity and modern luxury... and that's what we're
aiming for with the EQS." Daimler has not yet announced pricing for the
EQS, stating that it would be revealed closer to the launch date in the summer.
Källenius denied making any references to Tesla in
interviews and conference calls on Thursday. Tesla's market value of more than
$700 billion dwarfs all other carmakers. With a range of up to 770 kilometres
(478 miles), and a modern display screen that will fill almost the entire
dashboard - an optional feature - analysts see a bid to catch up to Tesla,
which had a head start on other carmakers and boasted a longer battery range
and its signature touchscreen infotainment device.
The EQS was dubbed "Mercedes' Tesla warrior" by
Deutsche Bank in a client note earlier this week, and the car "will
definitely set the bar in terms of technological features, as well as
architecture and specification," for both conventional carmakers and newer
entrants like Tesla. More than half of consumers, according to Källenius, will
pay extra for the projection screen, which Mercedes-Benz introduced in January.
The latest "Hyperscreen," which is 56 inches (142 cm) wide and dwarfs
Tesla's famed 17-inch screen in dimension, can also be used in Mercedes-other
Benz's new electric vehicles.
Källenius said he couldn't say how many EQS models the firm
plans to market or what kind of profit margins he expects the vehicle to
produce. However, he expressed high hopes for the Chinese industry, where the
conventional combustion engine S-Class model is in "very high
demand."
Daimler now has a hybrid platform to compete with Volkswagen
AG. In 2025, BMW will introduce a dedicated website. The arrival of the EQS,
according to Mercedes sales chief Britta Seeger, coincides with a surge in
demand for electric cars that exceeds expectations. During a conference call,
Seeger said, "We figured by 2030, half of our sales will be electric
cars" and plug-in hybrid vehicles. "What we're seeing right now... is
a greater demand from consumers for electric vehicles. We're also more certain
that this leap can be made a little easier."