Mercedes-Benz will continue to sell combustion-engined cars “well into the 2030s” as it adjusts to changing demand for its electric vehicles, the company’s CEO has said.
Mercedes announced in 2021 that it planned to become all-electric “wherever market conditions allow” by 2030.
“Artificially trying to hit the number by pushing product into the market doesn't make sense,” Mercedes CEO Ola Källenius told investors on the company’s earnings call on Thursday.
Mercedes has also dialled back plans for 50% of sales to be either electric or plug-in hybrid by 2025, now stating that it plans for “up to 50%” of its sales to comprise those electrified drivetrains “in the second half of the decade”.
The decision “looks pragmatic given a bumpier road to adoption, notably in North America,” wrote Jefferies bank analyst Philippe Houchois in a note to investors.
Mercedes has been hit by a weakening in demand for electric vehicles and forecast that the share of its plug-in cars would remain flat at between 19-21% of overall sales in 2024. Last year, those drivetrains accounted for 20% of sales, up from 16% the year before.
“Changing the whole energy infrastructure behind mobility is a very, very big task,” said Källenius. “We have to realise that there can be peaks and troughs in this transition.”
Källenius said the company’s MRA2 (modular rear-drive architecture) platform underpinning the new Mercedes-Benz E-Class can be updated into the 2030s.
Mercedes is also developing a new hybrid-focused four-cylinder engine with engine partner Geely that will launch in 2026 to meet new Euro 7 emissions standards. “We’ve got the powertrain line-up and we have the infrastructure to continue to produce [combustion-engined vehicles],” Kallenius said. “It's almost like we will have a whole new fresh line-up in 2027 that can carry us well into the 2030s.”
However, extending the life of combustion vehicles “adds some execution complexity”, Houchois warned. Mercedes would need to manage building ICE and BEV platforms in parallel for longer as it stretched the life of its EQ electric brand, which will ultimately be retired as all models shifted to electric.
Mercedes is continuing to launch new electric vehicles, with the key model being the CLA saloon in 2025 on the new electric MMA (Mercedes Modular Architecture) platform.
This platform will underpin four models that will replace the current compact range. In that line-up, the A-Class and B-Class won’t be replaced, with Mercedes focusing instead on SUVs, the CLA Saloon and Shooting Brake. Mercedes has promised models will travel up to 750km (466 miles) and recharge fast enough to give almost 250 miles after 15 minutes of being plugged into a suitable charger.
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Mercedes will need combustion engines to keep their museum cars running in 2035. They may find that no-one else wants one. @artill Several of my neighbours live in terraced streets and drive EVs. They also drive 250 miles in a trip. Your points are about 5 years out of date.
Posted comment below before finishing it.
Of course Mercs will be making petrol cars till they're not profitable or legal, it's not a headline. But, people will buy them in fewer numbers and BEV's sales will continue to grow because that's what people want.
Now that the best selling car in Europe is a BEV Mercedes cannot do as Ford did and put their head in the sand.
I disagree. This is BIG. They were previously going to stop selling ICE by 2030, and now they will continue, which will mean developeing at least another generation of ICE, and what is more they expect EV and plug in to be around only 50% by 2030, so it would seem that BEVs are not what people want. I suggest if they were, CoCar drivers would be happy to have an EV without 2% BIK, and the odd private punter might buy an EV. But they dont (in any meaningful numbers).
I am all for people being able to buy what they want, and for those wealthy enough, who dont do a lot of miles, and can access off street charging i can see why they might choose an EV. For those who live in a terraced house, or who sometimes drive over 250 miles in a day ICE power wins hands down, and although EVs might get cheaper, charging them wont get easier if you cant plug in at home. Mercedes have made the right choice here. There are quite a few more brands who have set unrealistic cut off dates, and i expect to see many of them follow Mercedes now.
No it's not big, you conviently missed their clause which was When market conditions allow. If the most valuable car company, Telsa, start making ICE's that would be big news, but that's not going to happen.
And to say people don't want BEV's when the top seller in europe is a BEV is dumb. Some people want semi automatic guns but that doesn't mean to say they should be allowed them.
So in 6 years half the sales will be BEVs but that not what people want? Please indulge us with more of this "logic".
Artill can I ask you a question - do you live in a terraced house?
not currently.
Are we meant to be surprized. They still be allowed well in 2030's in europe so why would they.