Report: Mercedes-Benz EQS Out, S-Class EV Incoming

The Mercedes-Benz EQS electric sedan will reportedly not see a second generation, likely to the disappointment of no one. Instead, the German automaker intends to build an all-electric S-Class to be sold alongside the internal combustion variant.

It’s no secret that the EQS had been under performing in terms of sales. While supply constraints and the novelty of the vehicle padded demand during the initial phase of its 2021 launch, it wasn’t long before it developed a reputation for being dead weight on dealer lots. Your author even spoke to a couple Mercedes-Benz salesmen that were actively cursing the vehicle by its second full year of production, noting that there was a decided drop in interest after the initial pre-orders were filled.

U.S. sales reflect this. Mercedes sold 7,054 examples of the EQS in 2022 and 6,805 units in 2023. At its current pace, the EV might clear 4,000 deliveries on our market by the end of 2024. Needless to say, that’s not ideal for the brand.

Now, AutoCar has reported that the automaker plans to send the model to an early grave. This is despite prior assertions that the EQS would see a second generation. Mercedes’ contingent plan is to simply build an electrified version of the S-Class (pictured below), which is probably what it should have done in the first place.

From AutoCar:

Mercedes will therefore do away with the EQS name introduced on its flagship electric model in 2021, CEO Ola Källenius has confirmed. “There will be two S-Classes in the future – ICE and electric,” he said, adding that both versions will feature similar exterior and interior designs.

However, they won’t be based on the same platform, Autocar understands. The S-Class EV is set to use the upcoming MB.EA Large platform and its ICE sibling will be on a further developed version of today’s MRA architecture.

The plan mirrors the positioning of the new G-Class, which now comes with both combustion-engine and electric drivetrain options without any significant difference in styling.

It’s no secret that the S-Class has seen underwhelming sales in recent years as well. However, it’s doing markedly better than the EQS and remains Mercedes’ flagship vehicle. The two models arguably hurt each other, with them filling similar roles in the market. While they remain quite different — the EQS is technically a hatchback and even more tech forward — it’s plausible they were drawing from the same customer base.

Your author would argue that the brand has also changed in ways that haven’t resonated with some drivers. Many claim that the current cars are more about dazzling buyers with tech and gimmicks than integrating new features into a comprehensive and classy package — with the EQS probably being one of the worst offenders in the lineup.

There’s also the matter of EV demand cooling off right when everyone decided to offer them. Manufacturers effectively need all-electric models to satisfy government emissions regulations and likewise believed they’d deliver better margins as they’d require fewer hands to assemble. But public interest appears to be waning, with the hardcore EV fans already having bought in.

Mercedes-Benz assumed EVs would account for 20 percent of its global volume by 2023. However, it only reached half that and it now appears that 2024 may end up representing a decline in electric vehicle volumes — at least in North America.

Moving forward, it looks like development of the would-be EQS Mk.2 will be rolled into an all-new S-Class that's slated to arrive at the end of the decade. AutoCar has a comprehensive financial breakdown of the billions of dollars that entails and how it's likely to be allocated.

It's also worth noting that the EQS has undergone some sizable changes for the 2025 model year. New motors, faster charging, updated battery chemistry, and some cosmetic tweaks are all designed to maximize its appeal. Assuming those are enough to turn the tide back in its favor, it could theoretically see another generation. Although, we're at a point in the development cycle where Mercedes-Benz needs to make concrete decisions about the future and it seems like building two versions of the S-Class. It would be a surprise to see it divert from the above development plan.

[Images: Mercedes-Benz]

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