Mercedes-Benz S-Class ICE and EV to share body with BMW 7

Next-generation Mercedes S-Class to replace EQS with EV version with identical body

Mercedes-Benz plans to combine its flagship S-Class and EQS models under one brand, a strategic move aimed at harmonizing its electric and combustion engine lineups. The unification marks a major shift in the brand’s strategy as it aims to achieve a balance between its traditional and electric vehicle offerings.

The future of the S-Class: two versions, one name

Mercedes-Benz’s next flagship model will be available in both ICE and EV versions by 2030, CEO Ola Källenius has confirmed. The decision is a departure from earlier plans to phase out the combustion engine-powered S-Class in favor of the EQS, which launches as the brand’s top electric sedan in 2021. Instead, Mercedes-Benz will retire the EQS name, continuing the S-Class tradition with two different powertrain options.

Kallenius stressed that the ICE and EV versions of the future S-Class will adopt similar exterior and interior designs, in line with Mercedes’ strategy to create a unified brand image across the entire model range. However, these models will be built on different platforms: the EV version will be based on the upcoming MB.EA Large platform, while the ICE version will adopt an advanced version of the current MRA architecture.

Sales Challenges and Strategic Adjustments

The strategic shift comes in response to falling sales of the S-Class and EQS. In the first quarter of 2024, S-Class deliveries fell 37%, causing Mercedes to reduce production to a single shift at the Sindelfingen plant, which also builds the EQS. Despite a 73% increase in electric vehicle sales compared to 2022, electric vehicles will account for only 11% of Mercedes’ global sales in 2023, below the expected 20%.

These challenges have prompted Mercedes-Benz to reassess its electric vehicle strategy. Initially, the company aimed for electric cars and plug-in hybrids to account for 50% of its annual sales by 2025. However, this target has been revised to 2030, reflecting slower-than-expected growth in the European and global electric vehicle markets.

Investing in internal combustion engine and electric vehicle technologies

In light of these developments, Mercedes-Benz is committed to extending the life of its main petrol and diesel models by integrating advanced electrification technologies. Källenius confirmed that the company will invest up to €14 billion by 2024 in research and development and production facilities focused on digitalisation, electric vehicles and advances in the internal combustion engine.

Källenius reiterated the company’s commitment to developing new electric vehicle technology despite rumors that Mercedes may ditch the MB.EA Large platform, which is expected to underpin the next-generation S-Class EV as well as future electric versions of the E-Class, GLE and GLS, in favor of beefing up the existing EVA2M platform.

Upcoming revisions to existing models

Before the all-new S-Class goes on sale, both the existing EQS and S-Class will undergo major updates. At the end of 2025, the EQS will undergo a major technology upgrade, including a transition to an 800V electric architecture to shorten charging times and increase range. On the other hand, the S-Class will be facelifted in 2026 with a new design, an upgraded MBUX super screen, and enhanced autonomous driving capabilities.

The Mercedes S-Class seems to be facing pressure from the BMW 7 Series, which has done well in both ICE and EV versions. We think the BMW i7 is popular because it looks exactly the same as the ICE version and there are no weird design elements that make it look like a sci-fi world-style EV.

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