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Home / Technology / How Mercedes-Benz became so prestigious, and why it is being challenged

How Mercedes-Benz became so prestigious, and why it is being challenged



Mercedes-Benz can boast that it gave the world the first production car. It has long been an innovator, a relentless pursuer of quality and technical expertise.

Many consumers say that owning a Mercedes-Benz is a sign that they have finally done so in life. It is considered one of the most ambitious brands among major car manufacturers – even by buyers of luxury cars who prefer cars from competitors, according to research from industry research firm AutoPacific.

But the car world is changing. Governments and a few consumers are pushing for electric vehicles, and companies are running to develop new modes of transport, including self-driving cars.

Some of these new technologies, such as electric trains, challenge traditional Mercedes-Benz strengths. After all, one of the things the triangular star was known for was superior engine technology.

Mercedes-Benz, say some industrial guards, has gone a little slower than some to adapt to the electrification challenge. Mercedes-Benz said in early 2021

that it planned to postpone the introduction of the EQC’s electric sports car in the United States for the foreseeable future, even though SUVs are the most popular light vehicle in the US market today. The company said it is still planning to release its electric sedan.

The German luxury brand and its traditional counterparts, such as BMW and Audi, are also facing challenges in the growing and extremely important Chinese market from electric start-ups such as Tesla and Chinese manufacturers such as Li Auto, according to some analysts. Historically, the three major German brands have controlled 60% of the luxury market in China, but the share is eroding as Tesla continues to open new stores in China, according to a report from Piper Sandler.

Mercedes-Benz has heritage, prestige, talent and a lot of experience to its advantage. But the car industry is making some big changes.


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