Mercedes-Benz is making a surprising move by retiring the EQS nameplate and integrating it into the S-Class lineup. This decision was confirmed by Mercedes’ CEO, Ola Källenius, who stated that there will be two versions of the S-Class in the future—one powered by an internal combustion engine (ICE) and the other by electricity. The EQS will essentially become the electric variant of the S-Class, sharing the same styling inside and out, with the exception of the grilles. However, their mechanical components will differ significantly. The electric version will utilize Mercedes’ MB.EA Large platform, while the ICE version will be based on an evolution of the current MRA architecture. This transition is not expected to take place until 2030, as Mercedes plans to introduce significant updates to both the current S-Class models in the next two years.
In the meantime, the EQS will undergo a revamp next year, featuring an 800-volt drivetrain, new battery chemistry, and new drive motors with a two-speed transmission. These upgrades will not only enhance charging capabilities and range but also improve top speed. Following this, in 2026, Mercedes will introduce a facelifted version of the S-Class with milder updates, including new styling, infotainment, and a mild-hybrid variant of the 4.0-liter, twin-turbo V8 engine. Additionally, hands-free SAE Level 3 driving assists will become more widely available.
The decision to merge the EQS into the S-Class lineup may stem from the underwhelming sales performance of both models. While the EQS has struggled to gain traction in the market, the S-Class experienced a 37 percent decline in sales during the first quarter of this year. This decline can be attributed to the aging of the sedan beyond its typical update cycle. As a result, the factory where both the EQS and S-Class are produced recently reduced its operations to a single shift.
Moreover, Mercedes’ projection of EVs comprising 20 percent of its global sales volume has fallen short, with EVs currently accounting for only 11 percent of global sales. This indicates that ICE vehicles will continue to be Mercedes’ primary focus until at least 2030, and potentially even beyond, depending on the global adoption of EVs.
In conclusion, Mercedes-Benz’s decision to retire the EQS sub-brand and integrate it into the S-Class lineup reflects the company’s strategy to streamline its offerings and consolidate its sedan offerings. By combining the EQS and S-Class, Mercedes aims to optimize its resources and appeal to a wider range of customers. However, the success of this move hinges on the company’s ability to adapt to the rapidly evolving electric vehicle market and meet the growing demand for sustainable mobility.