Mercedes-Benz had previously outlined a “Only EV” plan extending until 2030. However, in its announcement on Thursday, the company stated that it is retracting from its plan to exclusively sell electric vehicles after 2030. But is this decision logical? Here are the details of the news…
Mercedes-Benz aimed to only sell electric vehicle after 2030
Just three years ago, Mercedes declared its ambition to exclusively sell electric vehicles until 2030, signaling confidence in plug-in powertrains. At that time, the company stated its intention to phase out internal combustion engines entirely, with a caveat for “markets permitting.
“It appears that market conditions are not aligning with Mercedes’ plans. In its latest fourth-quarter earnings announcement, the company stated that it expects only 50% of its sales to be fully electric, marking a significant departure from its once optimistic outlook.
Internal combustion and hybrid vehicles will continue to be part of the company’s future in the coming years. Mercedes’ CEO, Ola Källenius, indicated in his statement that even in Europe, where the increase in electric vehicle sales has outpaced North America, Mercedes does not expect to transition solely to electric vehicle sales anytime soon. He stated, “Clearly it won’t be 100% by 2030…across all of Europe and probably not on the Mercedes side either.”
Elon Musk had issued warnings
Tesla CEO Elon Musk warned that the company was preparing for significantly slower sales growth in 2024, while companies like Rivian and Lucid, solely focused on electric vehicles, anticipated stagnant production this year. Other companies like GM and Ford have delayed factory constructions or canceled models.
Electric vehicle sales accounted for about 8% of total sales in the US last year, representing around 13% in Europe. Sales are still increasing, but customers are becoming more selective about pricing and expressing concerns about charging time and reliability.
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