Mercedes-Benz Korea CEO Mathias Vaitl answers questions from lawmakers during the National Assembly's annual audit at the Government Complex in Sejong, Monday. Vaitl was summoned for questioning regarding an unconfirmed electric vehicle fire that caused significant damage to an apartment complex in Incheon. Courtesy of National Assembly

Mercedes-Benz Korea CEO Mathias Vaitl issued an apology, Monday, for a devastating fire that occurred recently involving the carmaker's EQE electric sedan.

"Mercedes-Benz Korea sincerely apologizes for the controversy caused by our vehicle," Vaitl said during the National Assembly's annual audit.

He also pledged to provide ample support to those affected by the incident.

The local subsidiary of the German automaker has sparked nationwide fears about electric vehicle (EV) fires after its EQE EV ignited in the underground parking lot of an apartment complex in Incheon. The fire completely destroyed 87 vehicles and inflicted significant damage on the residential facility.

The carmaker and investigative authorities are currently examining the exact cause of the catastrophic EV fire. The affected model was fitted with a battery produced by China's Farasis Energy.

Last week, the National Forensic Service informed the police of the possibility that the fire was ignited by a damaged battery cell in the vehicle. Authorities indicated that a compromised battery cell is likely to have been the cause of the fire.

The CEO of Mercedes-Benz Korea has met with the affected residents of the apartment twice. In response to the incident, the automaker has pledged to donate 4.5 billion won ($3.34 million) to assist them and is offering to rent its new E-Class sedan for free for one year.

A group of victims is preparing to file a collective lawsuit against the automaker, demanding more specific compensation for the damages they have suffered.

According to a legal representative, the victims will file a civil suit at the Seoul Central District Court on Oct. 10, seeking compensation for the German automaker's alleged concealment of auto defects and false advertising.

An emergency planning committee addressing the EQE incident also disclosed Mercedes-Benz Korea's EQ Sales Playbook. This document outlines guidelines for how the automaker's dealers should respond to customer inquiries.

For example, dealers were instructed to assure customers that Mercedes-Benz EVs, which are equipped with CATL batteries, are safe because the battery manufacturer employs top-tier technologies, despite being based in China.

However, the document shared by the committee did not contain any remarks about Farasis batteries. The carmaker used both Farasis and CATL batteries in its EQE models sold in the region.

The controversial EV fire resulted in an immediate sales shock for the German luxury automaker. According to data from market tracker CarIsYou, Mercedes-Benz Korea experienced its largest decline in EV sales in August, selling only 133 Mercedes-Benz EVs — down 50.4 percent from the previous month.