▲Mercedes‑Benz's sales guidance regarding battery‑cell manufacturers. [Fair Trade Commission]
Mercedes‑Benz concealed the use of Chinese‑made battery cells in some electric vehicles and has been hit with an administrative fine totaling 11,239,000,000 KRW (approximately $8.43 million). The case marks the first time South Korea’s Fair Trade Commission (KFTC) has penalized an automaker for omitting or hiding EV battery information and thereby deceiving consumers. The KFTC filed criminal complaints against Mercedes‑Benz AG and Mercedes‑Benz Korea.
On the 10th, the KFTC said it found violations of the Monopoly Regulation and Fair Trade Act and issued corrective measures, including a public notice order, against Mercedes‑Benz AG and Mercedes‑Benz Korea. The commission imposed a combined administrative fine of 11,239,000,000 KRW (approximately $8.43 million).
The KFTC’s investigation found that in June 2023 Mercedes‑Benz issued sales guidance for the EQE and EQS that claimed all vehicles used cells from CATL, the world’s largest battery‑cell maker, while concealing the fact that some cars were fitted with cells from Chinese supplier Parasis.
Parasis was the subject of a large recall in China after battery fires in March 2021. Despite that history, Mercedes‑Benz Korea sold affected EVs domestically without disclosing the use of Parasis cells.
According to the KFTC, roughly 3,000 Mercedes vehicles equipped with Parasis cells were sold between June 2023 and August 2024, when the company began publishing cell‑maker information by model. Those sales totaled 281,000,000,000 KRW (approximately $210.75 million).
Battery cells are a critical component that directly affects an EV’s performance and safety. The commission said the identity of the cell manufacturer is a key factor for consumers when choosing an electric vehicle.
Hwang Won‑cheol, a standing commissioner at the KFTC, said Mercedes misled consumers into believing its products were substantially better than they were and thereby lured customers from competitors — conduct he described as “unfair customer inducement by deception.” He noted this is the first case targeting automakers for deceptive conduct related to EV battery cells.
The KFTC also urged affected owners to consider legal remedies to protect their rights and ordered Mercedes to publicly announce that corrective measures were imposed on both the German parent and the Korean subsidiary.
In setting the fine, the commission applied the law’s maximum rate of up to 4% of related sales, citing the close connection between cell‑maker information and public safety.
The KFTC referred Mercedes‑Benz Korea and the German parent to prosecutors for a more detailed investigation into how consumers were deceived.
Commissioner Hwang said the agency will continue to strictly punish actions that undermine fair market order and generate unfair gains by deceiving consumers.
Reporter Won Seung‑il won@ekn.kr
