About 3 years ago, Mercedes-Benz announced its plan to ─ by 2025, each production model of the manufacturer should have a fully electric version, and by the end of this decade, the brand will become fully electric and sell exclusively electric vehicles. However, the company has now announced that it is abandoning its plan to sell only electric vehicles after 2030.
3 years ago, when announcing its electrification plan, the company warned that it would abandon ICEs where «the markets allow». It seems that at this time the market does not allow Mercedes to fulfill its plans. The company said in its financial report for the fourth quarter of 2023 that it expects only 50% of sales to come from all-electric EVs. This is a significant drop in expectations compared to the once rosy forecasts. Gasoline and hybrid vehicles will remain part of the company’s future for many years to come.
«Customers and market conditions will determine the pace of transformation», — says the Mercedes report. «The company plans to meet the diverse needs of customers, whether it is an all-electric transmission or an electrified internal combustion engine, by the 2030s».
Even in Europe, where the growth of electric vehicle sales is outpacing North America, Mercedes does not expect to switch to selling only electric vehicles in the near future, said CEO Ola Kellenius.
Given the market conditions, automakers are expressing more caution about the future of electric vehicles. Tesla CEO Elon Musk has warned that the company is preparing for a significant slowdown in sales growth in 2024. At the same time, companies that focus exclusively on electric vehicles, such as Rivian and Lucid, said they expect production to remain flat this year. Other companies, such as GM and Ford, have postponed plant construction or canceled new models.
Last year, sales of electric vehicles in the United States accounted for almost 8% of the total, and in Europe – 13%. Sales are still growing, but customers are becoming more discerning about price, while expressing concerns about charging times and reliability. Meanwhile, sales of hybrids have grown significantly.
Source: The Verge