Mercedes is turning to its biggest luxury rival as it struggles to sell EVs
Mercedes-Benz is reportedly in talks with BMW, its biggest luxury rival, for a potential partnership as it struggles with declining electric vehicle (EV) sales. Despite offering significant discounts, Mercedes' EV sales in the US dropped by 55% in the first half of 2025, with new car registrations in Europe also down 2% compared to the previous year. This collaboration could help Mercedes compete against a growing number of luxury competitors in the market.
Is Mercedes-Benz throwing up the white flag? Mercedes is in talks with its biggest luxury rival over a potential tie-up that could shake things up.
Mercedes and BMW team up to take on luxury rivals
Even with massive discounts, Mercedes is still struggling to sell electric vehicles. In the US, the luxury automaker’s EV sales plummed 55% in the first half of 2025.
Sales of the EQE, EQB, and EQS are down significantly this year as Mercedes faces an influx of new luxury rivals.
In Europe, the situation isn’t much better. Mercedes’ new car registrations are down 2% through June compared to the same period in 2024.
