The Mercedes-Benz E-Class is losing structural momentum in China. In the first two months of 2026, E-Class sales fell 27% year-on-year despite terminal discounts exceeding 80,000 yuan; in April alone, sales dropped to 7,450 units, nearly halving month-on-month. The once steadfast pillar model—consistently selling over 10,000 units a month—has dropped out of the first tier of mid-to-high-end luxury sedans. This is no short-term fluctuation, but a systemic retreat of gasoline luxury sedans under siege by domestic high-end new energy vehicles.

Why the Gasoline E-Class Can No Longer Hold Its Ground

On the surface, the price isn't low enough; in essence, the relative erosion of product competitiveness has outpaced the rate of price cuts. The facelift has been criticized for "cutting features while raising prices," with the entry-level version dropping equipment such as the dashcam, and the infotainment system and intelligent driving capabilities remaining at the previous generation level—while domestic models in the 300,000-yuan range already come standard with urban high-level intelligent driving and continuous OTA updates.

Consumers aren't unwilling to buy a Mercedes-Benz; they're unwilling to pay a premium for a product that clearly lags in intelligence and experience yet still tries to command a brand premium. Terminal prices falling to around 260,000 yuan precisely indicate that the brand premium itself is being repriced by the market.

The EQE's Defeat: An Even More Thorough Lesson Than the Gasoline E-Class

The EQE in China is approaching delisting levels. In August 2026, only 6 units were sold for the entire month, with cumulative sales of 190 units in the first eight months, down 95.8% year-on-year; even with terminal discounts as high as 160,000 yuan and bare car prices falling below 300,000 yuan, it still attracted no buyers.

There are three root causes: the conversion-from-fuel platform inherently compromised space and powertrain efficiency; the bow-shaped body design deviated from E-Class users' aesthetic expectations for a traditional three-box luxury sedan; and intelligence fell comprehensively behind, with shortcomings in smart cockpit and intelligent driving multiplied by domestic competitors in the above-300,000-yuan market. The EQE's failure as a single product proves that in today's Chinese luxury car market, brand halo cannot replace platform generational gaps and experience generational gaps.

What Cards Does the All-Electric E-Class Reveal

The all-electric E-Class is a product developed by Mercedes-Benz "from scratch," adopting an independent all-electric platform, sharing the name with the gasoline E-Class but with a completely independent architecture. Core upgrades point in three directions: an 800V electrical architecture, with peak charging power jumping from the EQE's 170kW to 350kW; a range targeting the 700-kilometer class for the base version, with future solid-state battery versions targeting 1,000 kilometers; and a design that abandons the EQE's bow-shaped streamline in favor of a return to the traditional three-box silhouette, highly similar to the facelifted gasoline E-Class.

The most noteworthy signal comes from the pricing logic: Ola Källenius explicitly stated that the Chinese version "uses almost entirely locally sourced components," with the goal of reducing variable costs and leaving operational room for pricing.

Industry forecasts diverge significantly: the more optimistic estimate is a starting price of 450,000–500,000 yuan, while the more conservative estimate is in the 550,000–600,000 yuan range. Considering that the gasoline E-Class terminal price has already fallen to the 350,000 yuan level and the BMW i5 terminal price is also loosening, if the all-electric E-Class starts above 500,000 yuan, it will be difficult to escape the cycle of "pricing that immediately deters buyers."

Compared with Competitors at the Same Price Point, Advantages and Disadvantages Are Equally Clear

The advantages lie in the inertia of brand recognition and the return of the design. The E-Class has accumulated a massive user base in China, and the two characters "E-Class" themselves remain a status symbol for luxury mid-to-large sedans; the return to a three-box design directly corrects the EQE's biggest aesthetic misstep, with almost no cognitive barrier for traditional E-Class users.

The disadvantages are concentrated in whether intelligence can catch up with China's mainstream level. As of available information, the all-electric E-Class's intelligent driving and cockpit solutions have not yet been announced; if it still relies on European development rhythms and cannot access China's local intelligent driving and ecosystem capabilities, then even if the platform and powertrain catch up, a generational gap at the experience level will remain.

The BMW i5 and Audi A6 e-tron have already accelerated their localization rates, and price downward pressure is a certainty; the all-electric E-Class entering one step late faces an even more crowded and more discerning price band.

Making Money from China's Supply Chain and the All-Electric E-Class Selling Well Are Two Different Things

Using almost entirely local Chinese components is a correct decision on the cost side. Mercedes-Benz's global material cost target is an 8% reduction compared with 2024, and China's supply chain—in terms of cost and responsiveness in batteries, electric drives, and electrical/electronic architectures—is the most certain source of cost reduction globally.

Even if the all-electric E-Class fails to become a hit in the Chinese market, as long as overseas market demand holds, Chinese suppliers will still benefit from procurement for global models. But lower costs do not equal higher sales. Competition in the Chinese market has moved beyond the stage where "cheap enough means it sells" to the stage where "only experience leadership keeps you in the game."

The real test for the all-electric E-Class is not the supply chain, but the decisiveness of pricing and the depth of intelligent localization. If a starting price above 500,000 yuan is combined with a smart cockpit and intelligent driving system still defined by European rhythms, then it will most likely repeat a more refined but similarly ending EQE story; only if pricing stays close to the gasoline E-Class terminal price and the intelligence truly connects to China's ecosystem will it have a chance to turn the two characters "Mercedes-Benz" back into a reason to buy.