Mercedes Misled EV Buyers, South Korea Slams Record Fine After Battery Truth

Mercedes executive hands sales guideline booklet marked "EV Battery — CATL" to South Korean dealers in conference room, with EQE and EQS models on screen behind.

Mercedes-Benz gave internal sales guides to South Korean dealers, claiming all EQE and EQS EVs used CATL battery cells, the world’s largest EV battery maker with 39% global market share in 2025.

Mechanic reveals "Farasis Energy" battery label under lifted silver Mercedes EV in service bay, contrasting nearby CATL sales document on tool cart.

However, some Mercedes EVs secretly used battery cells from Farasis Energy, a Chinese company not ranked in the global top 10. This fact was hidden from sales guides and concealed from both dealers and customers.

Aerial view of vast distribution lot with rows of silver, black, and white Mercedes EQE and EQS vehicles, overlaid sales figures 3000 units and 281 billion won in clouds.

Between June 2023 and August 2024, about 3,000 Mercedes vehicles with Farasis batteries were sold in South Korea. Total sales reached nearly ₩281 billion, all marketed under the false claim of CATL batteries.

Low-angle shot of burning Mercedes EV in Incheon underground parking lot, flames engulfing vehicle as firefighter advances with hose amid smoke and debris.

In August 2024, a Mercedes EV caught fire in an underground parking lot in Incheon, South Korea. Investigators found the battery was made by Farasis Energy, not CATL, prompting a formal FTC investigation.

Over-shoulder view of FTC official examining evidence board linking Mercedes sales guidelines, Farasis batteries, Incheon fire photos, and 3000-unit sales data.

The Korea Fair Trade Commission investigation revealed Mercedes-Benz systematically misled consumers. Both the German headquarters and Korean unit were involved in creating and distributing deceptive sales guidelines.

FTC chairman announces 11.2 billion won fine on Mercedes at press conference podium, with penalty details on screen and flashing cameras from reporters below.

South Korea’s FTC fined Mercedes-Benz ₩11.2 billion ($7.61 million), the maximum legal penalty, about 4% of related sales. Both the German HQ and Korean unit were also referred to prosecutors.