Monday 3 September 2018 2:52 pm

Mercedes-Benz to unveil its first Tesla-challenger electric SUV

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Mercedes-Benz is set to lift the hood on its first electric vehicle tomorrow, debuting its EQC electric SUV to challenge Tesla's hold on the luxury battery-powered market.

Early publicity efforts from Mercedes have largely echoed a Tesla-style approach in order to appeal to its young and trendy demographic, releasing a series of teasers for the new car.

The Mercedes EQC will be the first car launched from its EQ electric brand, and will be priced in the same range as Tesla's $49,000 (£38,000) Model 3 in a bid to heat up the competition.

Read more: Dismissal secured: Tesla gets Model 3 shareholder lawsuit thrown out

Daimler, BMW and Volkswagen through its Audi and Porsche divisions are all set to release similar cars in the next few years.

Industry analysts told Reuters that they expect Tesla's hold on the premium battery market to decline once rival manufacturers make an entry, with LMC Automotive predicting a fall in market share from 12.3 per cent to 2.8 per cent.

It added that the combined market share from German manufacturers could reach a Tesla-rivalling 11.8 per cent as early as 2020, and rise as high as 19 per cent in 2023.

A similarly-priced Tesla Model Y SUV is expected to join the carmaker's lineup, but not before 2020-21.