The German premium automaker has decided to slow down its electrification efforts due to the slower adoption of electric vehicles.
Just days after Audi announced the extension of its combustion engine production, Mercedes-Benz has followed suit with a similar message. Ola Källenius, CEO of Mercedes-Benz, admitted that the company had to make a “course correction” and will keep internal combustion engines in production longer than initially planned.
Delaying Ambitious Goals
A few years ago, Mercedes-Benz pledged to go fully electric by 2030 “where market conditions allow.” However, reality seems to have reshaped those expectations.
“Electrified high-tech internal combustion engines will remain in use longer than we originally expected,” Källenius told German magazine Auto Motor und Sport. He described the dual strategy of offering both gasoline and electric vehicles as the “most rational approach,” considering the slower consumer transition to electric mobility.
An Industry-Wide Trend
This decision reflects a broader trend across the automotive industry. Many manufacturers have already walked back their aggressive electrification targets. While Mercedes-Benz reported a 23% drop in electric vehicle sales in 2024, the global EV market continues to grow. According to the International Energy Agency, worldwide EV sales rose by over 25%, reaching 17 million units.
Mercedes-Benz is thus moving toward the future without imposing strict limits—offering customers the freedom to choose between combustion and electric, allowing them to select what best fits their needs.