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How Mercedes-Benz became so prestigious and why it was challenged



Mercedes-Benz can boast that it brought the world’s first mass-produced car. For a long time, it has been an innovator, a relentless pursuit of quality and engineering excellence.

Many consumers say that owning a Mercedes-Benz signifies that they have finally realized their lives. According to research by industry research firm AutoPacific, it is considered one of the most aspiring brands among large automakers-even luxury car buyers who prefer rival cars.

But the automotive world is changing. The government and some consumers are promoting the development of electric vehicles, and companies are also vying to develop new modes of transportation, including cars that can drive themselves.

Some of these new technologies, such as electric drive systems, challenge the traditional advantages of Mercedes-Benz. After all, one of the things that the three-pointed star is famous for is its excellent engine technology.

Some industry observers say that Mercedes-Benz has been slower than some companies in adapting to the challenges of electrification. Mercedes-Benz stated in early 2021

that although SUVs are the most popular light-duty vehicles in the U.S. market today, it still plans to postpone the launch of EQC electric sports utility vehicles in the U.S. for the foreseeable future. The company said it still plans to release its electric car.

Some analysts said that German luxury brands and their traditional peers, such as BMW and Audi, are also facing challenges in the growth of electric upstarts like Tesla and Chinese manufacturers such as Lit Motors and the extremely important Chinese market. A report by Piper Sandler shows that historically, the three major German brands have controlled 60% of China’s luxury goods market, but as Tesla continues to open new stores in China, this The share is eroding.

Mercedes-Benz has a long history, prestige, talent and rich experience. But the automobile industry is developing some important hubs.


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