Just days after Audi revealed it would extend the life of its gasoline-powered cars beyond its original timeline, Mercedes-Benz has made a similar course correction, signaling a broader hesitation within the German auto industry about a full transition to electric vehicles (EVs).
Mercedes-Benz Group CEO Ola Källenius acknowledged in an interview with Auto Motor und Sport that the company is revising its strategy and will continue offering internal combustion engine (ICE) vehicles for longer than previously planned. “Electrified high-tech internal combustion engines will remain on offer for longer than we originally expected,” Källenius said, emphasizing a dual-track approach combining gasoline and electric technologies.
Mercedes had earlier committed to shifting to an all-electric lineup “where market conditions allow” by 2030. However, Källenius now argues that a mixed powertrain strategy is the most practical path forward in light of slower-than-expected consumer adoption of EVs. “In the current situation, I think the most rational approach is for an established manufacturer like Mercedes to do both technologies and not neglect either one,” he added.
This shift mirrors a broader trend among legacy automakers scaling back aggressive electrification timelines, prompting concerns about the overall health of the EV market. Some observers have interpreted these moves as evidence of waning interest in electric cars.
However, data tells a different story.
Despite challenges faced by individual automakers — including a 23% year-over-year drop in EV sales for Mercedes-Benz in 2024 — the electric vehicle sector remains in growth mode. According to the International Energy Agency (IEA), global EV sales surged by more than 25% in 2024, totaling around 17 million units.
Further momentum is expected this year. BloombergNEF’s annual Electric Vehicle Outlook projects a 25% rise in sales of plug-in hybrids and fully electric vehicles in 2025, with nearly 22 million units anticipated to hit the roads. Much of this growth, however, is concentrated in China, where market conditions, government policies, and consumer preferences significantly differ from those in Europe.
Industry analysts caution against drawing sweeping conclusions based on moves by a few automakers. While it’s clear that some carmakers are struggling to meet ambitious EV targets, the global trend still points toward electrification — albeit with regional variations and a slower pace than some had hoped.
As Mercedes-Benz and other automotive giants recalibrate their timelines, the road to a fully electric future appears less linear than once envisioned, but still firmly underway.
Source: Mercedes-Benz, Auto Motor und Sport