Mercedes-Benz Applies for Electric Vehicle Subsidy Test... Can the Struggling EQC Take Off?

[Asia Economy Reporter Kiho Sung] Mercedes-Benz is reportedly applying to the government for testing to qualify the 'EQC 400 4MATIC' electric vehicle for subsidy payments. Industry insiders predict that if the test proceeds smoothly, the EQC could be included in this year's list of electric vehicles eligible for subsidies. This has drawn attention as a potential turning point for Mercedes-Benz's electric vehicles, which have struggled in sales until now.

According to the industry on the 15th, Mercedes-Benz Korea recently applied to relevant authorities for testing related to the EQC's low-temperature driving range certification. A Mercedes-Benz Korea official explained, "The testing process is currently underway." However, a representative from the Korea Environment Corporation, which is conducting the process, stated, "No information regarding the test can be disclosed at this time."

The EQC is the only electric vehicle model Mercedes-Benz Korea has launched domestically. It was unveiled last October amid high expectations but faced difficulties in sales after being excluded from the electric vehicle subsidy program. In Korea, where temperature differences between summer and winter are significant, the low-temperature driving range must be at least 60% of the normal temperature driving range to qualify for electric vehicle subsidies. However, at the time of its domestic launch, the EQC's low-temperature driving range was only 55.3% (171 km) of the normal temperature range, falling short of the application criteria.

Exclusion from the electric vehicle subsidy program directly impacted sales. According to the Korea Imported Automobile Association, a total of 47 EQCs were sold from its launch in October last year through April this year. Of these, only 17 units were sold in the first quarter of this year.

The government provides a maximum purchase subsidy of 8 million KRW for electric vehicles. When combined with local government subsidies, discounts can exceed 10 million KRW. For example, a resident of Seoul, which offers a subsidy of 4.5 million KRW, can receive a total benefit of 12.5 million KRW. Considering the EQC’s price of 103.6 million KRW including VAT, this is a significant amount.

Mercedes-Benz Korea is reported to have increased the EQC’s low-temperature driving range to 270 km through software improvements carried out since early this year. If this performance is properly realized, the test is expected to pass without difficulty.

An automotive industry official said, "If the reported performance is accurate, the EQC will be eligible for electric vehicle subsidies," adding, "This will also affect the EQC’s price, so sales are expected to increase further."

This content was produced with the assistance of AI translation services.