We are only a few hours away until the Mercedes-Benz EQC is unveiled to the world. The electric sport utility vehicle is expected to signal the end of Tesla’s dominance in the electric vehicle segment of the market.
According to Reuters, the coming of the EQC followed by the same EV offerings from BMW and Volkswagen’s Audi and Porsche divisions are predicted to rock Tesla on its core.
Wajih Hossenally, an automotive powertrain analyst with IHS Markit, said that Tesla has a strong hold on the EV market at present. However, the landscape is projected to change when the premium EVs from German luxury brands arrive. He pointed out that Tesla has “virtually zero competition” today, but he believes that its market share will decline starting in 2019.
LMC Automotive, the rival of IHS Markit, voices the same opinion. The analyst sees a steady decline in Tesla’s share in the EV market in the next decade. The electric car maker’s market share is expected to go down to 2.8 percent from the 12.3 percent it is enjoying now. The numbers are forecasted to remain the same even if Tesla’s sales continue to rise.
The report said that the combined market share of the German brands will likely reach 11.8 percent in 2020 and 19 percent after three years.
An earlier analysis also said the premium features of the Mercedes-Benz EQC will most probably capture consumers who are willing to spend more for a luxury EV. It adds that Mercedes makes the highest-quality production cars on the planet plus they are strong as a brand due to their outstanding sales channels and production facilities. They have a lot of resources as well compared with Tesla.