Luxury car buyers will boost EV adoption, believes Mercedes-Benz CEO

Luxury car brands are currently at the forefront of electric vehicle adoption, and luxury car buyers would boost the EV drive further, believes Mercedes-Benz CEO Ola Kallenius. In an interaction with CNBC, he said that there is still a place for internal combustion engine-powered vehicles, and there will be for some time. However, he also mentioned that luxury car buyers would accelerate the shift to electric vehicles.

Speaking about Mercedes-Benz's own strategy for the internal combustion engine vehicles, Kallenius said that the German luxury car brand still intends to produce ICE cars into the future, but it may not last much longer. He also said that if vehicle buyers increasingly choose electric vehicles over combustion engine-powered vehicles, it will only make sense for the brand and its rivals to transition the current product lineup more quickly.

Mercedes-Benz's CEO also pointed out that the market and the consumer sentiment as well are already clearly in the process of transitioning. “Step by step, we see the market turning. I really believe that in this decade, we will flip from being based upon high tech internal combustion engines to going dominant electric, if not all electric, in the luxury segment," he further added.

Interestingly, the shift in mindset from the automakers came as a surprising change, as it wasn't long ago that nearly every luxury car manufacturer was pushing back against electric vehicles. Now, it seems most car brands are beginning to see the future as EVs first, just like Kallenius.

Mercedes CEO also said that the automaker wants to shift towards electric mobility as it thinks that is right thing to do. Apart from that, the automaker also believes that it will be better business than the current ICE vehicle business. "I don’t think there’s any question for a modern company, a forward-thinking modern company, that we need to decarbonize," he further added.

Overall, it is clear that Mercedes will continue to sell both ICE and electric cars for many years to come.

Check out Upcoming EV Cars in India.