Beijing Mercedes-Benz has launched the Chinese variant of the Mercedes CLA EQ, the all-electric version of the third-gen CLA. It features a longer wheelbase and some localized technology, but is built on the same platform and uses the same electric drivetrain. And yet, it’s almost half the price of the European version.

The all-new Mercedes CLA launched earlier this year in Europe, with a highly efficient electric drivetrain boasting nearly 800 km of driving range. Now, Beijing Benz, the joint venture between BAIC and Mercedes for Chinese production, has unveiled the CLA 300 L for the Chinese market.

Longer and different software on board

The Mercedes CLA 300 L is built on the same MMA platform as the European model, but features a 400 mm longer wheelbase, which is actually welcome, considering the cramped rear of the low saloon. The new measurements are 4,763 mm in length, 1,836 mm in width, and 1,471 mm in height, with a wheelbase of 2,830 mm.

Inside, things are similar to the EU-spec CLA, too, with a 10.25-inch digital dashboard, a 14-inch infotainment screen, and an optional 14-inch passenger display. The screens run on MB.OS and are powered by the Qualcomm Snapdragon 8295. Mercedes did not communicate this for the European CLA, so it’s unclear if there’s a difference here.

What is specific to the Chinese CLA 300 L is the Doubao AI assistant from TikTok owner ByteDance, replacing the ChatGPT-powered MBUX Virtual Assistant found here. The smart driving assistance from Chinese startup Momenta is also specific to the China-spec Mercedes CLA.

Identical drivetrain but over €25,000 cheaper!?

But everything else is identical, including the 200-kW rear motor and 89 kWh NMC battery pack, running on 800 V. That gives the Mercedes CLA 300 L a 866 km CLTC range, compared to a maximum of 791 km WLTP. A cheaper version with the 58 kWh LFP pack is also coming.

And here’s the kicker: whereas the Mercedes CLA 250+ with the larger battery pack costs around €55,000 in Europe, the Chinese model with the same drivetrain starts at just 249,000 yuan (€30,400)! Even the top-spec model costs just 285,600 yuan (€34,800).

Cost savings or market adjustment?

Where does this price difference come from? That remains unclear. Local production should make a difference, and lower VAT rates also help explain the price gap. But with the same hardware on board, the much lower price seems to be driven mainly by market expectations.

The Mercedes CLA has to compete against models like the Tesla Model 3, Xiaomi SU7, and Xpeng P7 in China, which are similarly priced “low” (by European standards). With the current price wars going on in the Chinese EV market, selling a “compact” electric car for €40,000-50,000 would be a recipe for disaster. But is there still a profit margin left at this price point?