There are a few different opinions on the news that Mercedes-Benz is abandoning its plans for electric vehicles. According to a report by Sina Technology, Mercedes-Benz CEO Kang Linsong said at the annual shareholders' meeting that Mercedes-Benz has adjusted its previously set goals and no longer plans to fully switch to electric vehicle sales in major markets by 2030. The reason behind this decision is because Mercedes-Benz electric vehicles are not gaining popularity as expected. For example, in 2023, electric vehicles account for only 11% of Mercedes' sales, and with the sales of hybrids, the proportion is also only 19%. As a result, Mercedes-Benz has decided to continue producing internal combustion engine vehicles and plans to update the technology over the next decade, launching a completely new lineup of internal combustion engine models by 2027, enabling the internal combustion engine to last until the 2030s1.
However, according to Tencent News, the slowdown in demand for Mercedes-Benz's electric vehicles is a global problem, which has also forced Mercedes-Benz to reduce or even stop producing electric vehicles. According to the report, Mercedes-Benz announced that its electrification target will be postponed until at least 2030 due to the continued sluggish demand for electrification, when pure electric and hybrid vehicles will account for 50% of its fleet. This decision is not only due to the significant slowdown in the global growth of the electric vehicle market, but also related to the sluggish sales of its own electrified products. For example, Mercedes-Benz's BEV sales in 2023 accounted for only 11% of total sales, compared to 19% if plug-in hybrids are counted2.
Finally, Sina Motors put forward another point of view, arguing that Mercedes-Benz's abandonment of the all-electric vehicle plan was a misunderstanding. At its annual results presentation, Mercedes-Benz reiterated that it is taking the necessary steps to continue its electrification transition, but the pace of this transformation will depend on customer and market conditions. Mercedes-Benz's "electric-first" Mercedes-Benz Modular Platform (MMA), which will be launched in 2025, marks the next step towards an electric future. Therefore, each model of Mercedes-Benz in the future will have its corresponding pure electric product selection3.
To sum up, although Mercedes-Benz has adjusted its electric vehicle plan, it does not mean that it has completely abandoned the electric vehicle market, but has adjusted the plan accordingly according to market demand and technological development.