Mercedes-Benz has announced a shift in its strategy concerning the sale of pure electric vehicles (EVs) by 2030.
This change, revealed in the company's latest fourth-quarter earnings statement, marks a significant departure from its earlier, more ambitious goal.
Market realities prompt strategy shift
Three years ago, Mercedes-Benz was confidently projecting a future dominated by EVs, with a plan to exclusively sell EVs by 2030.
This bold move included phasing out petrol-powered vehicles, albeit with the provision “where markets allowed".
However, the global auto industry's recent slowdown in sales growth has led Mercedes-Benz to reassess its position.
The company now expects that only 50 per cent of its sales will be all-electric by 2030. This revised outlook reflects a more balanced approach, acknowledging the continued presence of gas and hybrid vehicles in its future lineup.
"Customers and market conditions will set the pace of the transformation," Mercedes stated.
The brand emphasises its readiness to meet diverse customer needs, offering both all-electric drivetrains and electrified combustion engines well into the 2030s.
Europe not yet ready for full EV transition
Mercedes-Benz's CEO Ola Källenius has echoed this cautious approach, particularly in Europe.
Despite the region's faster EV sales growth compared to North America and several key regions, a complete transition to EV-only sales is not imminent.
"It’s not going to be 100% in 2030, obviously... from the whole European market, but probably from the Mercedes side as well," Källenius told Reuters.
Mercedes-Benz is not alone in this recalibration. Tesla CEO Elon Musk has also warned of slower sales growth in 2024.
Mainstream manufacturers such as GM and Ford are also adjusting their strategies, delaying factory constructions or cancelling models.
Growing popularity of hybrid vehicles
As EV sales continue to grow, accounting for 27.2 per cent of new car sales in New Zealand, nearly 8 per cent of total vehicle sales in the US and 13 per cent in Europe last year, consumer preferences are evolving.
Customers are increasingly weighing factors like price, charging time, and reliability. In response, hybrid vehicle sales have seen a notable increase, offering a transitional solution for those awaiting more developed charging infrastructures.