Mercedes has confirmed that they are delaying their electrification goal by 2030 and will continue offering internal combustion engine (ICE) vehicles, according to Reuters. In particular, the automaker expects sales of electrified vehicles, including hybrids, to account for up to 50% of the total by 2030.
Previously, Mercedes had committed to achieving full electrification by 2030, with plans to phase out combustion engines entirely by then. However, the automaker intends to sell ICE vehicles well into the next decade.
The main reason for revising the plan is that despite the industry’s large-scale investment in electrification, electric vehicle (EV) sales in Europe are still small. In this regard, Mercedes CEO Ola Källenius warns that EV sales will not dominate the market by 2030, even in Europe. EVs represent only 11% of total sales, while hybrids comprise 19% in Europe.
Regarding ICE vehicles, Mercedes’s Ola Källenius said that as many customers still prefer ICE vehicles, the automaker will continue to develop technologies for internal combustion engine vehicles, including groundbreaking fuel efficiency improvement technologies.
Mercedes’s electric passenger car sales in 2023 in the global market recorded 222,600 units, a 73% increase compared to the previous year. BMW Group recorded 376,183 units, a 74.4% increase from a year earlier, and the gap between the two automakers is still significant.
Meanwhile, Mercedes’s revenue in 2023 slightly increased to 153.2 billion euros ($170.6 billion), but the operating profit (EBIT) recorded a decrease of about 4% to 19.7 billion euros ($21.9 billion). The margin for passenger cars fell to 12.6% (2022: 14.6%), while the margin for vans increased from 11% to 15.5%.
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