Mercedes revises EV plans with current market status. Check details

The German luxury carmaker, Mercedes-Benz has been at the forefront of the automotive industry's shift towards electric vehicles (EVs). However, during the press conference for its 2023 results, the company humbly admitted to a slight delay in its ambitious electric vehicle plans. Previously aiming for plug-in hybrids (PHEVs) and full EVs to represent half of its total sales by 2025, Mercedes now projects achieving this milestone by 2030, a five-year extension of its initial timeline.

The adjustment in strategy is a part of Mercedes' broader "Ambition 2039" plan, which was unveiled several years ago. This strategy stated the brand's intention to become fully electric by the end of the decade, "where market conditions allow." The recent investor-focused document by the company indicates that hybrids and EVs will constitute "up to 50 per cent" of Mercedes' sales in the latter half of the 2030s, underlining a commitment to flexibility based on market dynamics.

Despite this revised timeline, Mercedes remains steadfast in its commitment to a sustainable future. The company CEO, Ola Kallenius acknowledged that conventionally powered cars still underpin the company's financial stability, citing the ongoing cost disparity between internal combustion engine (ICE) and EV cars.

He emphasised that achieving cost parity between the two technologies is still "many years away," a sentiment reflected in the company's investor presentation, which predicts that EV manufacturing costs will not match ICE levels until after this decade.

In 2023, Mercedes saw significant growth in its EV segment, with combined deliveries of PHEVs and EVs reaching 401,943 units, marking a 20.5 per cent increase over the previous year. Notably, while PHEVs experienced a slight decline of 12.5 per cent to 161,275 units, EVs surged ahead with a remarkable 61.3 per cent growth to 240,668 units. This performance elevated the share of PHEVs and EVs in the total volume to 19.7 per cent, up from 16.3 per cent in 2022, setting a solid foundation for future growth.

Looking ahead, Mercedes is banking on its MMA platform, designed to accommodate both EVs and combustion engines, to drive its electrification efforts. This platform will underpin at least four models in the product roadmap, including the CLA, CLA Shooting Brake, GLB, and the anticipated "Little G," a smaller sibling to the iconic G-Class, slated for launch in the latter half of the decade.

The forthcoming electric models from Mercedes are claimed to have up to 750 kilometers (466 miles) of range in the WLTP cycle and support for 300-kW charging, enabling a 15-minute charge for 400 kilometers (249 miles) of range. Additionally, bidirectional charging capabilities are expected, along with a range of power outputs ranging from 201 to 536 horsepower, depending on the model and version.