Mercedes faces mounting backlash in China after EQC software updates cut battery capacity and driving range. Following a recall-linked battery management system update, owners report sharp drops in usable capacity and range. Some vehicles lost up to 100 km per charge; capacity fell by as much as 20%. EQC owners post before-and-after chargeable battery capacity More than 400 owners have organized to defend their rights, filing complaints and preparing for joint legal action. The issue stems from a 2025 safety recall. China’s regulator ordered Mercedes to recall 13,447 locally produced EQC units built between 2018 and 2022. The recall cited a software defect in the battery management system that, under extreme circumstances, could lead to thermal runaway and fire risks in the high-voltage battery system. Mercedes has not provided a clear response on the “battery lock” claims. The company says range varies by conditions; post-update changes require case-by-case assessment. Mercedes-Benz EQC With no solution offered, owners formed groups, submitted complaints to regulators, and are planning litigation depending on outcomes. The dispute comes as Mercedes weakens in China. Q1 2026 sales fell to 111.6K units, down 27% year-on-year. Europe rose 7%; North America grew 16%. China has become the main drag on global performance. EV penetration remains low. Pure electric models account for less than 2% of Mercedes China sales. EQB sold 1,948 units; EQE SUV 775 units; EQE 184 units. Financials also show pressure. Revenue reached €31.6 billion ($36.2 billion), down 4.9%. Net profit fell to €1.433 billion ($1.64 billion), down 17.2%. Core auto margin dropped from 7.3% to 4.1% The controversy echoes wider market concerns. Earlier rumors claimed multiple NEV makers faced regulatory probes over “battery lock,” including BYD, XPeng, Li Auto, NIO, Zeekr, AITO, GAC Aion, and Tesla. BYD Denies Regulatory Summons Companies denied the claims; no firm confirmed regulatory action. State media later said the reports were false. Public concern over battery limits in EVs remains elevated.
