Mercedes Shifts Strategy, Will Continue Improving Combustion Engine Models

Mercedes has postponed its goal of transitioning to electric vehicles only, stating that they are continuing to improve combustion engine models to remain a modern car manufacturer in the face of weak demand for battery-operated vehicles.

The German company has announced that it is backtracking on its plan to only sell electric cars after 2030, which is further evidence that the global automotive industry is feeling more pressure regarding the future of fully electric vehicles following a slowdown in sales growth.

Mercedes has been feeling very optimistic about electric engines since just three years ago. At that time, they said that by 2030 their sales would be limited to electric cars only.

Mercedes said at that time that it may gradually phase out vehicles powered by fuel wherever markets permit, but it now appears that markets do not allow Mercedes to continue with its plans.

The company said in a statement that it expects electric car sales to account for up to 50 percent of the total by 2030, including hybrid vehicles.

This number represents a significant decrease compared to the previously optimistic expectations, as fuel-operated vehicles and hybrid vehicles will remain part of the company’s future for years to come.

Mercedes stated in a press release that customers, market conditions, and the pace of transition will determine our approach, and we plan to meet the needs of different customers, whether that involves a fully electric engine or a hybrid combustion engine.

Mercedes does not expect to transition to electric car sales exclusively in the near future, according to CEO Ola Källenius, who stated, “We will not be able to sell electric cars only in 2030.”

Calinius’ statements are considered as contemporary comments of an executive in the automotive industry expressing more caution regarding the future of electric cars.

Elon Musk, the CEO of Tesla, cautioned that the company is anticipating slower growth in sales in 2024.

While electric car companies such as Rivian and Lucid stated that they anticipate production to remain steady this year.

Other companies, such as General Motors and Ford, postponed the construction of factories.

Sales of electric cars accounted for approximately 8 percent of the total number in the United States last year, while they represented around 13 percent in Europe.

Sales continue to increase, although customer focus has shifted towards price, while expressing concerns about shipping times and reliability.

At the same time, hybrid sales have increased, as more people are opting for hybrid options when building the infrastructure for shipping.