Mercedes-Benz aims to double its EV sales in 2022, plans stronger supply network

German luxury car brand Mercedes-Benz aims to double its electric vehicle sales in 2022 and strengthen its supplier network. Mercedes-Benz CEO Ola Kaellenius on Thursday said that the company will expand its electrified car footprint in relevant markets worldwide.

(In pics: Mercedes-Benz EQS rivalling BMW i7 sedan teased during acoustic testing)

The luxury car brand aims to have battery-powered all-electric models in all its segments in 2022. The carmaker also aims to sell only electric cars by 2030.

However, things will not be easy for the luxury car brand. Mercedes-Benz's Chief Financial Executive Harald Wilhelm has listed a series of challenges that the carmaker expects to face in 2022. These include uncertain geopolitical developments, the ongoing Covid-19 pandemic and a significant rise in some raw material prices.

Semiconductor price is one hurdle that has been giving the automakers hardships for more than a year. Mercedes-Benz too is one of the car brands that has witnessed a massive impact due to the crisis. To offset the impact in the coming months, Mercedes-Benz is aiming to take steps to tighten its relationship with semiconductor suppliers, revealed the automaker.

Mercedes has had more trouble sourcing chips than BMW AG in 2021. BMW even outsold its rival for the first time since 2015 by better navigating the microchip bottleneck that impacted global auto production. The three-star manufacturer said that it expects the chip crunch to stabilize this year, but didn’t say when it sees the shortage ends.

The company's CFO said that it is agreeing on concrete supply quantities, widening its source base, extending planning cycles and developing safety stocks. Speaking about the rising raw material costs and their impact on the automaker's production and product prices, he said that the automaker expects a headwind in this space.

The carmaker has said that vehicle prices will continue to rise but will not fully offset the raw material headwinds which are expected to increase in 2022 compared with last year.