Mercedes To Shift EQS Production To Germany From The US, Will Build New-Gen EQC Instead

Mercedes-Benz plans to stop producing the EQS electric luxury SUV in the US as per a new report. The automaker plans to move the flagship electric SUV’s production to Germany instead. The Mercedes-Benz EQS is the electric equivalent of the Mercedes-Benz GLS and is produced at the automaker’s Alabama manufacturing facility. The report further states that Mercedes plans to produce the new-generation EQC at the Alabama plant, which will be built in higher volumes and will utilise the facility better.

The opulent Mercedes-Benz EQS only constitutes about seven per cent of the automaker’s annual production capacity at the US plant, which has an annual production capacity of 305,000 vehicles. Between January and September, Mercedes-Benz sold 7,086 units of the EQS in the US, which is a much smaller number compared to the plant’s capabilities. The German automaker plans to shift production in the second half of the decade to its Bremen facility in Germany freeing up space for a new offering.

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Meanwhile, production of the new Mercedes-Benz EQC is expected to commence at the Alabama plant in the first quarter of 2026. The GLC is a hot seller for the automaker globally and is also its best-selling SUV in India. The new EQC is expected to best those numbers over time and reports suggest the automaker could easily produce over 50,000 units in the first year itself.

This will help optimise capacity usage at the US plant, while local production will make the EQC eligible for tax credits under the US Inflation Reduction Act. The new GLC-based EV is expected to offer a far better range when compared to the outgoing EQC, which is not on sale in the US due to its limited reach. The new-gen GLC is currently undergoing testing and is expected to make its global debut sometime in 2025 or early 2026.

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Expect the second-generation Mercedes-Benz EQC to offer a better range of nearly 500 km on a single charge. It will also have a different and more rounded design than the internal combustion version. The new-gen EQC is also expected to make its way to the Indian market from the Alabama facility and could be locally assembled to keep costs competitive. Mercedes-Benz India already assembles the EQS in India, which has given the model a significant cost advantage.

The Mercedes-Benz EQS will be joining the C-Class, E-Class, GLC and EQE models at the automaker’s Bremen facility. Operational since 1978, the plant can produce up to 265,000 vehicles every year and the new EQS should add about 20,000 units to the assembly line.