By Mercedes Benz like all other manufacturers were planning to stop selling internal combustion engine models and they have set themselves a target of 2030. Now the company has decided to continue selling internal combustion engine (ICE) models well into the 2030s marking a strategic shift in response to evolving market dynamics. Despite its earlier commitment to transition towards an all-electric lineup by 2030, the company’s CEO, Ola Källenius, emphasized the need for flexibility in adapting to changing consumer demand and market conditions.
Källenius highlighted the importance of avoiding artificial measures to meet targets, acknowledging the challenges in achieving full electrification by a set timeline. The decision reflects a pragmatic approach, especially considering the slower-than-expected adoption of electric vehicles (EVs), particularly in regions like North America. Mercedes-Benz’s revised plans now aim for up to 50 per cent of sales to comprise electric or plug-in hybrid drivetrains by the second half of the decade, scaling back from the earlier target of 50 per cent by 2025.
Despite setbacks in EV demand, Mercedes remains committed to innovation, with ongoing developments such as the MRA2 platform and a new hybrid-focused four-cylinder engine in collaboration with Geely. However, extending the lifespan of combustion vehicles introduces complexities, requiring parallel management of ICE and battery electric vehicle (BEV) platforms. The company acknowledges the transition challenges but remains focused on technological advancements and cost-reduction strategies to drive EV adoption.
Mercedes-Benz continues to invest in electric mobility, with upcoming releases like the CLA EV sedan slated for 2025. Leveraging the new electric MMA platform and advancements in battery technology, the company aims to enhance EV performance and affordability, with models boasting impressive ranges and rapid charging capabilities. Furthermore, Mercedes is exploring partnerships and supply chain optimizations to lower battery costs and enhance production efficiency. By leveraging lithium-iron-phosphate (LFP) batteries and optimizing design and manufacturing processes, the company aims to achieve a 30 per cent reduction in battery costs in the coming years.
