Tesla’s (TSLA) grip on the electric sport utility vehicle (SUV) market is about to face even more pressure, and this time, it’s not coming from China. Germany’s legacy automakers Mercedes-Benz (MBGYY) and BMW (BAMXF) have just debuted new luxury SUVs.
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On Sunday, Mercedes unveiled its new electric SUV, the Mercedes-Benz GLC, ahead of the IAA Mobility car show in Munich. Some days earlier, BMW also announced the rollout of the BMW iX3, a new electric SUV that features its newly designed automated driving system. The iX3 is part of the launch pad for BMW’s Neue Klasse, a new group of advanced electric vehicles with “superbrain” technology.
Both old-school carmakers tapped American chipmakers Nvidia (NVDA) and Qualcomm (QCOM), respectively, in their latest efforts to challenge Tesla’s Model Y dominance of the electric SUV market. The renewed competition from the European auto giants comes at a time when Tesla is facing sales troubles in the continent, even as Chinese rivals seek to consolidate their presence amid an intense domestic price war.
Automakers Unwrap Latest SUV Models
Mercedes, BMW, and other European automakers are falling behind Elon Musk’s Tesla and Chinese brands like Xiaomi (XIACF) and XPeng (XPEV) in software development. Chinese manufacturers also have the advantage of producing electric vehicles at much lower costs.
However, Mercedes and BMW, with their latest models, are seeking to beat down the market competition. While the GLC boasts features such as fast-charging, driving assistance, and higher mileage, the iX3 offers functionalities such as hands-free driving and smart lane change, according to both manufacturers. Both also come with smart AI-enhanced functionalities.
On the other hand, some American manufacturers are also seeking to increase their market share. Recently, Michigan-based General Motors (GM) teamed up with South Korea’s Hyundai Motor (HYMLF) to co-develop five vehicles, aiming to lower costs and better compete with rapidly rising Chinese automakers.
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