Mercedes-Benz Takes U-Turn, Commits to Selling ICE Vehicles Beyond 2030

Mercedes-Benz, a leading German car brand, has changed its earlier plan to only sell electric cars by 2030. The company’s top boss announced they will still sell cars with traditional gas engines into the 2030s because people are not buying electric vehicles (EVs) as much as expected.

Mercedes-Benz: Slower Shift to Electric Cars

Ola Källenius, the CEO of the company, told investors that it makes no sense to push electric car sales when consumers aren't ready to buy them. Mercedes has also changed its goal for sales of hybrid and electric vehicles. Rather than aiming for a 50 percent sales objective by 2025, their current plan is to achieve it towards the end of the decade.

The move makes sense because the transition to electric vehicles has proven more difficult than anticipated, particularly in North America. Mercedes has observed a decline in the market for electric cars. According to their predictions, sales of electric and hybrid vehicles will account for only 19–21% of total sales in 2024.

Källenius pointed out that changing from gas to electric cars is a huge task and there will be ups and downs along the way. He also mentioned that the technology in their new Mercedes-Benz E-Class cars can be updated for many years, well into the 2030s.

New Engine and Future Plans

Mercedes and its engine partner Geely are developing a new engine that complies with stringent European emission regulations and is more environmentally friendly. By 2026, this new engine will be prepared. According to Källenius, they should be able to continue producing gas cars long into the 2030s given their current lineup of models and production capacity.

However, this plan to keep selling both electric and gas cars could make things more complicated. They will need to handle making two types of cars at the same time as they slowly stop making gas cars.

Mercedes isn't stopping its electric car projects, though. They're planning a new electric car, the CLA EV sedan, for 2025. This car will be part of a new electric platform that will include four models, focusing more on SUVs and less on the A-Class and B-Class cars. These new electric cars will be able to travel long distances and recharge quickly.

Mercedes is aiming to reduce battery costs by thirty percent and intends to utilize less expensive cells in order to make electric cars more accessible. For certain next models, they are investigating the use of less costly lithium-iron-phosphate batteries.

In India, Mercedes-Benz is already selling several electric models and will introduce a new E-Class sedan later this year.

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