Mercedes Shifts Gears: Doubling Down on Combustion Engines Alongside Electric Cars

Mercedes Shifts Gears: Doubling Down on Combustion Engines Alongside Electric Cars
As reported by Reuters, Mercedes-Benz is hitting the brakes on its all-electric future and revving up its combustion engine lineup. The German automaker is the latest in a string of car companies to acknowledge slower-than-expected demand for electric vehicles.

Here’s what’s under the hood of Mercedes’ new plan:

  • Electrification by half: The company now expects electrified sales, including hybrids, to account for about 50% of total sales by 2030. This is a major shift from its previous goal of going all-electric by that date.
  • Combustion cars get a boost: Mercedes will invest in updating its lineup of combustion engines, including gasoline and diesel models. This will ensure they meet stricter emissions standards and remain competitive in the market.
  • No rush to go fully electric: CEO Ola Kaellenius says that neither Europe nor Mercedes will be ready for a complete transition to electric vehicles by 2030. He believes there is still a strong demand for combustion cars, and the company wants to be prepared to meet that demand.

Why the change of heart?

There are a few reasons for Mercedes’ shift in strategy:

  • Slowing demand for EVs: While electric vehicle sales are growing, they are not doing so as quickly as many automakers had anticipated, this is due to a number of factors, including high prices, limited range, and a lack of charging infrastructure.
  • Rising costs: The cost of developing and producing electric vehicles is still high.This is putting pressure on automakers to cut costs, which could lead to lower-quality products.
  • Competition from China: Chinese automakers are rapidly ramping up their production of electric vehicles. They are also offering these vehicles at lower prices than their Western counterparts.
Mercedes Benz Eqc Production Start1674230115

Photo: Mercedes benz eqc production

What does this mean?

It’s too early to say for sure what the long-term impact of Mercedes’ decision will be, it is clear that the transition to electric vehicles is not going to happen as quickly as some had predicted.

In the meantime, Mercedes will continue to offer a mix of combustion and electric vehicles. This will allow the company to meet the needs of a diverse range of customers and stay ahead of the competition, Toyota has also opted for this option, believing that the switch to electric vehicles will take longer than expected.

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