Mercedes-Benz on the future of auto-mobility

Mercedes-Benz has taken a significant step towards electrification in South Africa with the launch of its full model electric car range, the EQ range. The German car maker has introduced three SUVs and a luxury sedan as part of this range, with a starting price of around a million rents. The move comes at a time when there is a global push by car manufacturers to shift towards electric vehicles in order to improve mobility and reduce carbon emissions. Mark Reign, the Co-CEO of Mercedes-Benz South Africa and the Executive Director at Mercedes-Benz Cars joined CNBC Africa to discuss the reception of the EQ range in the market. According to Reign, the response to the new electric vehicles has been exceptional with orders covering the entire production of 2022 and already extending into the next year. The company has seen a surge in demand for the EQA, EQB, and EQS models, with inquiries and orders overwhelming the market. The EQS, being the pinnacle of luxury in the electric vehicle market, has been particularly well received. Mercedes-Benz has plans to introduce additional models to the South African market, further expanding its electric vehicle portfolio. The company's success in the EV space comes at a time when the global economy is facing challenges such as slow growth, high inflation, and aggressive interest rate increases. Despite these challenges, Mercedes-Benz remains optimistic about its outlook in the South African market, projecting double-digit growth in the coming year. The company has invested in solar solutions at its production plant in East London and plans to expand its network representation to meet the luxury aspirations of its customers. In addition to the electric portfolio, Mercedes-Benz is set to launch the C43 and C63 luxury performance models, further enhancing its product offerings. Reign emphasized the importance of focusing on the cost of ownership rather than the initial cost of the vehicle, highlighting the cost advantages of running electric vehicles. With advancements in battery technology, the range of electric vehicles is continuously improving, with Mercedes aiming to reach 1000 kilometers on a single charge. One of the key challenges facing the electric vehicle market in South Africa is the availability of charging infrastructure. Mercedes-Benz has partnered with GridCars to provide various forms of charging solutions. Every Mercedes EQ customer is offered a free installation of a home charger or a charger at any destination of choice. The company's investment in charging infrastructure and solar solutions aims to make electric vehicles more accessible and sustainable in the South African market. Despite challenges such as the semiconductor chip supply chain disruptions, which have impacted production globally, Mercedes-Benz is optimistic about overcoming these obstacles and emerging stronger. The company is focused on optimizing its supply chain and logistics to address these challenges. As the automotive industry continues to evolve, Mercedes-Benz is committed to leading the way in electric mobility and sustainability in South Africa.