Mercedes-Benz Korea turns to affordable CLA EV amid falling sales

Mercedes-Benz Korea is betting that a more affordable all-electric CLA sedan will revive its flagging electric vehicle (EV) business in the country, as Tesla and Chinese rivals gain ground in one of Asia’s most competitive imported-car markets. The German luxury automaker introduced the all-new electric CLA and GLC on Monday, with the entry-level CLA coupe-type sedan priced from 52.9 million won ($40,000). The pricing marks a major shift from Mercedes-Benz’s traditional premium positioning, placing its new electric sedan closer to mass-market alternatives, including Tesla’s Model Y, which starts at 49.99 million won in Korea. The Model Y was the country’s best-selling vehicle last month, largely due to its competitive pricing. The launch of the price-competitive CLA comes as Mercedes-Benz struggles to rev up sluggish EV sales. The company’s electric car lineup, previously a major source of growth, has lost momentum following the August 2024 fire involving a Mercedes-Benz EQE sedan in an underground parking garage in Incheon. Mercedes-Benz’s EV sales in Korea reached a peak of