Mercedes To Pay Rs 70 Crore Fine! Here’s Why! » MotorOctane

Mercedes-Benz has built its reputation not just on engineering its products to last like tanks. But their new strategy, which they call ‘All-In’, has cost them a whopping Rs 70 Crore in Fines! What is this new strategy, and how is it causing trouble for this German Automaker? 
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Mercedes All-In Strategy

Not just Mercedes; across the industry, there is a clear shift from ICE vehicles to electric vehicles. Initially, Mercedes focused on only electrifying their existing ICE models. But now, with this new ‘All-In’ approach, they are working towards launching electric-only architectures. But to achieve this, they might have chosen the wrong path! Is Mercedes fooling its customers? 

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Rs 70 Crore Mistake – What Went Wrong With Mercedes?

This has been catching a lot of buzz in South Korea. Mercedes is a renowned electric luxury manufacturer that caught up with the electrification race quite early. But in recent times, they have been in trouble for their misleading claims. The brand has told the dealer network and customers in South Korea that they have been using CATL battery packs in their EVs. But certain reports show that they have been misleading everyone and have used battery packs from another brand.

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Why Does It Matter So Much? 

Well, before diving into why it matters so much to us, we would like you to know that the Korea Fair Trade Commission (KFTC) has penalised Mercedes with 11.2 billion South Korean Won, which is equivalent to more than Rs 69 Crore in India. So, that’s big money, and it matters to South Koreans to a big extent. Even if both battery packs might perform the same function and provide the same performance, there is a significant trust factor involved. But this is happening in South Korea, right? How does it affect us Indians?

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Should Indians Be Worried? 

Even though the fine will be borne by the automaker in South Korea, some concerns remain about the batteries used in Indian models. Fortunately, there is no claim yet that the Indian-spec EQE and EQS are misleading consumers, and we hope that we aren’t affected by this. Mercedes India is yet to comment on this.

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