Mercedes-Benz, the global luxury car brand, made a major U-turn at a recent annual shareholder meeting when CEO Ola Kalenius announced that the company had decided to adjust its previously proposed all-electric vehicle target and no longer pursue full electric vehicle sales in its major markets by 2030. The news has undoubtedly sent shockwaves through the automotive industry and environmental policymakers.
Mercedes-Benz has been actively pursuing an "electric-first" strategy, with plans to gradually transition its product line to electric models in the next few years. However, the reality is not quite as it should be. Although Europe is a pioneer in the rollout of electric vehicles, as of 2023, BEVs account for only 11% of its sales, and even if hybrids are included, the total proportion of electrified products is only 19%. This is a far cry from the original goal of an all-electric transition.
In view of this, Mercedes-Benz has rearranged its electrification process based on the latest market demand trends and investor feedback. Kang Linsong, chairman of the company's board of directors, said that Mercedes-Benz is ready to continue to invest in the development and production of advanced internal combustion engine vehicles, and not completely abandon the traditional powertrain. In its strategic blueprint for the next decade, Mercedes-Benz revealed that it will launch a new generation of internal combustion engine models by 2027 to ensure that fuel technology can continue until at least the 2030s.
This strategic realignment reveals Mercedes-Benz's pragmatic approach to navigating market uncertainty and balancing customer needs and technological trends. While the global demand for electric vehicles remains unchanged, combustion engines will continue to dominate in the short term, especially in emerging markets and regions where infrastructure has not yet kept pace. Mercedes-Benz's move aims to meet the diverse needs of different markets and maintain its leading position in the global luxury car market.
It is worth noting that Mercedes-Benz has not completely abandoned the transformation of electrification, but has chosen a more stable path, taking into account the optimization and upgrading of traditional power systems and the research and development and promotion of new energy technologies. This strategy is not only a respect for market demand, but also a careful consideration for the long-term development of the enterprise. In the future market competition, whether Mercedes-Benz can continue to maintain its competitive advantage on the road of fuel and electric dual-track by virtue of flexible and forward-looking strategic adjustment deserves the industry's continuous attention.