The German Automobile Giant Mercedes Benz has announced that it is making its way into the electric scooter market. They have collaborated with a Swiss Scooter manufacturer Micro. The announcement was not as magnificent or even as necessary as expected from the luxury car manufacturer. In fact, according to The Verge, the announcement was more like a disclaimer tucked away between other not so significant news. The Verge reported that Daimler, the parent company of Mercedes Benz announced the two-wheeled electric scooter in the 2019 Frankfurt Motor Show last week.
Germany is popularly known as the home to the perfect engineering due to the extreme precision in almost all of the German machinery and tools. The best known however is the German automobile industry with the legends such as Mercedes Benz, BMW and Porsche. The country’s stellar rise since the defeat in World War II has provided a favourable environment to the automobile companies of Germany. The best part is that they have capitalized on the opportunities and have become some of the largest players in the automotive world with amazing innovations years after years.
Mercedes Benz, in particular, is known for its pioneering nature in the industry. This is not a surprise that the brand has entered the electric scooter market. What is odd is the timing as it is late as compared to other players. However, it is also said that better late than never. Moreover, the company needs to do the right thing if not do it first. Considering the technical capabilities of the company and the financial prowess combined with the huge research and development team, they are probably looking at a huge market growth in the near future.
As far as the current market is concerned, the electric scooter market is being dominated by the Chinese players. They have a cost advantage as the manufacturing cost is significantly lower in China. Moreover, they have captured most of the global markets wherever the electric scooters are sold at the moment before anyone else could even think about it. This way, they also had a first-mover advantage.
Having said that, the German brands have a high reputation in the market that is very difficult to bypass. Even if these brands are a little late to the party and the price is higher compared to the competitors, they will have their buyers. The reason is that they target a niche market that is willing to pay the price to satisfy their needs which are difficult to be fulfilled by the companies offering at a lower price point.
Mercedes has not revealed any specification of the scooter like its battery capacity, range, price, weight and so on. This refers to the fact that the production is in a very early stage and needs refining to come out for the mass.