It seems that Mercedes-Benz is joining the gaggle of carmakers that are backtracking on their electric vehicle (EV) transition strategy. Speaking to German magazine Auto Motor und Sport, Mercedes-Benz CEO, Ola Källenius, has admitted that due to low demand, the company will be abandoning its goal of offering only EVs, “where market conditions allow”, by 2030.
Instead, it will adopt a more flexible strategy in what the boss calls “course correction”, and will continue offering electrified internal combustion engine (ICE) powered cars well into the next decade, as this is deemed the most rational option amidst slower EV adoption rates.
“Electrified high-tech combustion engines will run longer than we originally expected,” Källenius said to the publication. “In the current situation, I think the most rational approach is for an established manufacturer to do both and not neglect either technology.”
This backtrack comes after BloombergNEF reports that global demand for EVs is starting to slow down, with countries like Germany reporting a drastic decline in EV sales. Despite electrified vehicles sales expected to reach record heights again this year, it’s evident that most of that growth are in the form of plug-in hybrids (PHEVs) and range-extender electric vehicles (REEVs), rather than pure battery EVs – even in China, the largest EV market in the world.
Mercedes-Benz is particularly struggling with EVs, with sales dropping by 23% amidst a period where the global EV market saw a growth of 25%.
The U-turn is not much of a surprise, then, given that Mercedes-Benz has already once revised its electrification timeline. Dubbed “Ambition 2039”, the revised goal now targets for a CO2-neutral new car fleet by 2039, rather than a full commitment to EVs. In achieving that, the brand expects that 50% of all car sales will be EVs and plug-in hybrids (PHEVs) by the second half of this decade.
For its latest models, Mercedes-Benz is also now offering both electrified ICE cars and EVs alongside each other, instead of standalone EV products like the EQS and EQE. This can be seen in the debut of the all-new Mercedes-Benz CLA, which will be offered with both EV and mild-hybrid powertrains, with the latter slated for launch in the near future.
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