Mercedes-Benz, renowned for its luxury and sophistication, is recalibrating its electric vehicle (EV) strategy, pushing back its EV sales targets from 2025 to 2030.
During their recent Earnings Call, Mercedes-Benz executives unveiled the adjusted plan, aiming for EVs and hybrids to constitute at least 50 percent of their sales by 2030. Initially set for 2025, the delayed timeline reflects subdued demand and market conditions.
CEO Ola Kaellenius highlighted the challenges, noting that regions where the company anticipated stronger EV adoption, like Europe, still exhibit tepid demand. Despite Europe’s EV sales accounting for only 11 percent of total sales, and 19 percent including hybrids, the envisioned transition has been slower than anticipated.
While industry players express optimism for EVs, actual demand hasn’t matched expectations. Achieving the 50 percent target hinges on consumer willingness to embrace EVs, which has not materialized as swiftly as envisioned.
In response to the EV timeline adjustment, Mercedes-Benz plans to enhance its combustion engine vehicles’ technology. This strategy aligns with the company’s acknowledgment in 2023 of the competitive EV landscape impacting profit margins, prompting a focus on internal combustion engine (ICE) vehicles to fortify earnings.