South Korea sees panic selling of used EVs following Mercedes-Benz fire

A close-up of a Mercedes logo on a car. Illustration photo by Pexels

According to The Korea Herald, over 100 EQE models—including the standard EQE 300, the high-performance AMG variant, and the EQE SUV—were listed on South Korea’s leading used car trading platform SK Encar after the incident, bringing the total number of EQE vehicles available to 115 by Aug. 16.

Similarly, K Car, the country’s second-largest used car trading platform, experienced a 184% increase in EV listings in the first week of August compared to the previous week.

The surge followed a fire on Aug. 1 involving a Mercedes-Benz EQE 350+ model in an underground parking lot. Reuters reported that the fire, which took more than eight hours to extinguish, necessitated the evacuation of some residents to shelters.

Additionally, the prices of the listed EVs have significantly decreased. Prior to the fire, used EQE models were sold for between 60-70 million won (US$44,445-$51,853). Post-incident, prices have dropped dramatically, with some 2023 EQE 300 models now available for as low as 59 million won, well below their original selling price of 92 million won.

This incident has exacerbated the challenges facing EV manufacturers in South Korea, leading companies like Hyundai Motors to launch significant promotional campaigns. Hyundai is now offering up to five million won off the Kona Electric and a 10% discount on the Ioniq 5, while Genesis, Hyundai’s luxury division, has reduced prices by up to 5% on all models.

Imported car makers are also feeling the pressure, with BMW offering discounts of more than 12% on its flagship electric models, the i7 and iX, and Audi slashing prices nearly 30% on its e-tron lineup, including the performance-oriented RS variants.

Despite these discounts, consumer hesitation persists. Car dealers report that some customers are canceling orders for new EVs amid growing concerns over potential new regulations that could restrict EV usage, especially in underground parking facilities due to fire risks.

The turmoil in the used EV market reflects broader industry challenges. According to data from the Ministry of Land, Infrastructure, and Transport and automobile market tracker Carisyou, nearly 1.63 million EVs were sold in in 2023, down 1.1% from the previous year.

The decline has persisted into 2024, with EV registrations from January to July falling by 13.4% year on year.