Mercedes-Benz has confirmed that they are delaying its electrification goal by five years and will continue offering combustion engine models.
The company now expects sales of electrified vehicles, including hybrids, to account for up to 50% of the total by 2030 – five years later than its forecast from 2021 when it aimed to hit the 50% milestone by 2025 with mostly all-electric cars.
While automakers and suppliers are betting big on future demand for electric vehicles, investment in capacity and technology development has outrun actual EV demand, prompting carmakers to readjust production plans.
CEO Ola Kaellenius cautioned towards the end of last year that even in Europe, sales would likely not be all-electric by 2030, with battery-powered cars currently making up just 11% of total sales, and 19% including hybrids.
Kaellenius said they want customers to know that they are well-prepared to carry on producing combustion engine cars and was ready to update the technology well into next decade.