Mercedes sold far fewer cars destined for the taxi business in 2024, and here are the reasons why the German automaker is no longer interested in the business.
Photo: Mercedes-Benz
The German newspaper Handelsblatt reports that only 497 Mercedes models were registered as taxis in Germany between January and August 2024 compared to 1,730 in the same period last year. The drop is a dramatic 71%.
Of the 497 units, only 127 were Mercedes E-Class and B-Class, which were Mercedes’ best-selling taxi models. The German carmaker had announced as early as spring 2022 that it would no longer offer the new-generation Mercedes E-Class limousine and estate (W214 and S214) as a taxi. Nor was the facelifted version of the B-Class offered as a taxi. Also, the current generation Mercedes C-Class (W206 limousine and S206 station wagon) launched in 2021 no longer has a taxi version either.
What causes this dramatic drop? There are two causes.
The most important is that Mercedes has changed its strategy. The folks at Mercedes believe that the idea of a taxi doesn’t fit Mercedes’ luxury standards. Secondly, the models intended for the taxi business have a small profit margin and Mercedes has reached the conclusion that it is not worth supporting this business anymore. For example, in 2022 Mercedes was offering taxi versions of the E-Class at a significant discount. The E 200 d cost 35,535 euros plus VAT, the E 220 d 36,410 euros plus VAT, and the E 300 de Plug-in Hybrid 47,235 euros plus VAT. Today, an E 220 d costs 54,050 euros plus VAT, almost 20,000 euros more.
The other reason relates to changing market demand. Demand for the E-Class and B-Class as taxi models has fallen by 75% in the last four years, replaced by multifunctional models with better access and space for up to seven people. Mercedes has therefore temporarily offered the Mercedes Vito Tourer and V-Class including their electric versions EQV and E-Vito Tourer. However, Mercedes officials said they no longer offer either model as a taxi.
The V-Class and Vito van models couldn’t make up for the disappearance of the E-Class and B-Class in the taxi business and that’s why Mercedes’ share of taxis in Germany fell from 52% in 2019 to just 38% in 2023. And by August 2023 it was down to just 13%.
Mercedes’ place in the taxi business has been taken by VW with the Touran and Caddy and Toyota with the Corolla and RAV4.
In the future, Mercedes will no longer offer fully equipped taxi vehicles directly from the factory. From the end of this year, Mercedes will only offer some taxi packages for the V-Vlass, Vito, and their electric versions but then these vehicles will have to be converted for taxi work by specialized companies. In addition, there will be a Mercedes E-Class with a limousine service package for luxury transportation for hotels or officials.
By abandoning this market Mercedes loses some of its brand awareness in terms of reliability. Mercedes E-Class models that have covered over 1 million kilometers in a few years were not isolated cases and were living proof of the indestructibility of these models.
VW and Toyota, on the other hand, are taking advantage of this situation and are happy to occupy a market segment deliberately vacated by Mercedes. Toyota, for example, can prove and confirm the low fuel consumption of its hybrid propulsion systems.
