South Korea's ‌antitrust regulator said on Tuesday it was fining Mercedes-Benz 11.2 billion won for misleading consumers about the battery suppliers used in some of its electric vehicles.

The Korea Fair ⁠Trade Commission said Mercedes-Benz distributed sales guidelines to dealers suggesting that all its EQE and EQS electric vehicle models were equipped with battery cells made by China's Contemporary Amperex Technology Co Ltd (CATL), the world’s largest battery maker.

Some Mercedes EV models, however, were fitted with battery cells supplied by China's Farasis Energy, information that was omitted from the internal sales ⁠guide and concealed from dealers and consumers, the commission said in a statement.

CATL ⁠held a 39 percent share of the global EV battery market in 2025, while Farasis Energy did ⁠not rank among the ‌world's top 10 battery suppliers, according to industry tracker SNE Research.

The commission said it launched ‌an investigation after it found battery cells in a Mercedes EV involved ⁠in an August 2024 fire at an underground parking lot in Incheon was made by Farasis.

About 3,000 vehicles containing Farasis battery cells were sold between June ‌2023 and August 2024, with total sales amounting to roughly 281 billion won, it said.

The US$7.61 million fine, equivalent to about 4 percent of the related sales, was ⁠the maximum ‌penalty allowed under the law for such ‌unfair practices, it said.

The regulator said it would also refer both Mercedes headquarters in Germany and the Korean unit to prosecutors, saying the two ⁠were involved directly or indirectly in creating and distributing the sales guidelines. (Reuters)



Edited by Thomas McAlinden