South Korean regulators have imposed a 11.2 billion won ($7.61 million) fine on Mercedes-Benz for misleading dealers and consumers about battery suppliers in its electric vehicles, marking the maximum sanction under national trade laws.
The Fair Trade Commission found that the German automaker and its local unit distributed internal sales guidelines falsely stating that all EQE and EQS models featured cells from top supplier CATL, when many actually used those from lesser-known Farasis Energy.
This came to light after a major fire in an Incheon parking lot in August 2024 involving an affected vehicle, sparking safety concerns amid a string of EV incidents in the country.
The penalty equates to about four percent of revenues from the roughly 281 billion won in sales of some 3,000 vehicles equipped with Farasis batteries between June 2023 and August 2024.
An FTC official said the misconduct involved Mercedes-Benz and its South Korean subsidiary “directly or indirectly” in creating and sharing the deceptive materials, adding that both the German headquarters and local arm would share the financial burden.
The case has been referred to prosecutors for possible criminal charges, with no immediate response from Mercedes-Benz.
The revelations have dented consumer trust in the luxury brand’s EV lineup, especially as CATL commands a 39 percent global market share compared to Farasis’s absence from the top ranks.
