Although the EU has ordered manufacturers to switch to full electrification by the end of the decade, the latest information suggests that Mercedes may continue to develop ICE and hybrid cars after 2030. The reason lies in the decline in demand for electric cars in Europe, but also in the high prices of electric vehicles.

According to data for January, the demand for electric cars on the German market dropped by 54.9 percent compared to the same period in 2023. Some of the reasons are the decision of the German authorities to temporarily suspend subsidies for the purchase of new EVs, current state of the German economy, geopolitical tensions in the region, inflation, but also the bad infrastructure of charging stations. This led buyers to turn to proven options, gasoline and diesel cars. In January, 9.1 percent more gasoline cars were sold compared to the same period in 2023, while demand for diesels increased by 9.5 percent.

Chairman of the management board of Mercedes-Benz Ola Källenius said that PHEV cars will remain in use for years to come, regardless of the fact that plug-in hybrids were the first to be removed from the list of state subsidies.

Mercedes had high expectations when it comes to electric vehicles, but now plans and predictions are changing. Källenius believes that only 50% of cars sold by 2030 will be EVs.

Is this the only way for European manufacturers to counter the conquest of Chinese electric cars that are arriving in large numbers on the European market, or are manufacturers finally realizing that electrification is going too fast and that currently “green energy” is not green? The future will show.

Source: Mercedes-Benz