Mercedes-Benz Korea fined for misleading EV battery claims in EQE fire case
Mercedes-Benz fined for misleading EV battery claims in Korea
Mercedes-Benz Korea fined for misleading EV battery claims in EQE fire case
South Korea fines Mercedes-Benz $7.64 million for hiding battery supplier details on EQE and EQS EVs, following a fire investigation. Learn about the case and its impact.
2026-03-11T12:36:28+03:00
2026-03-11T12:36:28+03:00
2026-03-11T12:36:28+03:00
South Korea's antitrust authority, the KFTC, has fined Mercedes-Benz Korea $7.64 million following an investigation triggered by a fire involving an EQE electric SUV in an Incheon underground parking lot in 2024. The probe found that the company misled buyers by claiming that EQE and EQS models were equipped with batteries from CATL, the largest and most renowned battery manufacturer. In reality, both electric vehicles used battery modules from Farasis Energy, a much lesser-known Chinese supplier.The KFTC emphasized that batteries are a critical component for safety and consumer choice, and that Mercedes-Benz Korea unfairly built trust in the models by deliberately concealing information. Internal dealer documents highlighted the benefits of CATL's technologies but did not disclose the use of Farasis batteries. Moreover, the regulator determined that the Korean subsidiary had received full details about suppliers as early as 2021 but knowingly omitted any mention of Farasis from its materials.From June 2023 to August 2024, over 3,000 of these electric cars were sold in Korea, generating approximately $175 million in sales for Mercedes-Benz. The EQE fire, which caused significant damage, prompted the investigation: more than 140 vehicles were destroyed, dozens of residents suffered from smoke exposure, and hundreds of apartments lost power and water.The regulator believes that hiding battery information could have misled consumers and violates fair trade laws. Mercedes-Benz Korea is now required to revise its advertising materials and dealer communications.
Mercedes-Benz Korea fine, EQE fire, EV battery claims, KFTC investigation, Farasis Energy, CATL batteries, electric vehicle safety, South Korea antitrust
2026
Michael Powers
news
Mercedes-Benz fined for misleading EV battery claims in Korea
South Korea fines Mercedes-Benz $7.64 million for hiding battery supplier details on EQE and EQS EVs, following a fire investigation. Learn about the case and its impact.
Michael Powers, Editor
South Korea's antitrust authority, the KFTC, has fined Mercedes-Benz Korea $7.64 million following an investigation triggered by a fire involving an EQE electric SUV in an Incheon underground parking lot in 2024. The probe found that the company misled buyers by claiming that EQE and EQS models were equipped with batteries from CATL, the largest and most renowned battery manufacturer. In reality, both electric vehicles used battery modules from Farasis Energy, a much lesser-known Chinese supplier.
The KFTC emphasized that batteries are a critical component for safety and consumer choice, and that Mercedes-Benz Korea unfairly built trust in the models by deliberately concealing information. Internal dealer documents highlighted the benefits of CATL's technologies but did not disclose the use of Farasis batteries. Moreover, the regulator determined that the Korean subsidiary had received full details about suppliers as early as 2021 but knowingly omitted any mention of Farasis from its materials.
From June 2023 to August 2024, over 3,000 of these electric cars were sold in Korea, generating approximately $175 million in sales for Mercedes-Benz. The EQE fire, which caused significant damage, prompted the investigation: more than 140 vehicles were destroyed, dozens of residents suffered from smoke exposure, and hundreds of apartments lost power and water.
The regulator believes that hiding battery information could have misled consumers and violates fair trade laws. Mercedes-Benz Korea is now required to revise its advertising materials and dealer communications.
