Tag Archives: Mercedes-Benz

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Electric Vehicle Plans Stalled by Market Hesitation

At the start of the 2020s, the automotive industry boldly charted a course toward an all-electric future, with many leading manufacturers pledging to phase out internal combustion engine (ICE) vehicles by 2030. However, the tide appears to be turning. Major carmakers like Mercedes-Benz, Audi, Volkswagen, and BMW are now tempering their ambitions, citing lagging consumer demand and market variability as key reasons for their recalibrated strategies.

Mercedes-Benz: A Strategic Pivot

Mercedes-Benz is among the first to publicly adjust its course. While the German automaker continues to invest in electric models like the GLC and CLA—both of which are expected to bolster EV sales—the brand is not ready to abandon traditional engines. Gasoline and diesel variants will remain available for at least another decade.

This decision is partially a response to underwhelming global sales of its EQS and EQE electric models, which failed to meet expectations. The new GLC will be built on the modular MB.EA platform and offered exclusively as an electric vehicle, while the CLA will take a dual-track approach, available as both an EV with cutting-edge 800-volt technology and a mild hybrid model. This reflects a more pragmatic and flexible strategy, in tune with real-world market demand.

BMW: Electric Skepticism Meets Strategic Hedging

BMW, which has long favored a multi-platform approach, is doubling down on its strategy. CEO Oliver Zipse has openly called electric vehicles a “dead end,” suggesting that the market may not fully transition as quickly as many had hoped. The upcoming iX3, built with 800-volt architecture, will serve as the electric sibling to the conventional X3, while the new i3—set to resemble the classic 3 Series—will integrate extended-range technology, with a gasoline engine acting as a generator.

This diversified approach allows BMW to hedge against the uncertainties of global EV adoption, balancing innovation with familiarity.

Audi and Volkswagen: Backpedaling on Bold Promises

Three years ago, Audi vowed to launch its last ICE models by 2025 and become fully electric in new vehicle launches by 2026. But the brand is now reconsidering this timeline. CEO Gernot Döllner recently told Autocar that Audi may continue producing petrol-powered cars until at least 2035, depending on customer demand.

Volkswagen echoes this caution. Although the company plans to produce an all-electric Golf, it also anticipates maintaining production of its combustion engine counterpart for at least another decade. This marks a significant shift from its earlier commitments to rapid electrification.

A Global Patchwork of Progress

Automakers are increasingly recognizing that global markets are moving toward electromobility at different paces. While regions like Europe and China are more EV-focused, others remain reliant on traditional engines. This disparity is prompting companies to create “safety nets” by retaining ICE models longer than originally intended.

Toyota stands out as a leader in this flexible approach. As the world’s largest carmaker, it has long pursued a diversified portfolio—including hybrids, hydrogen fuel cells, and battery-electric vehicles—offering a model of balanced innovation that other manufacturers are now beginning to emulate.

Uncertain Policy Future

The EU’s current legislation mandates a phase-out of new ICE vehicles by 2035, effectively banning them from the market. Yet, with major automakers recalibrating their strategies, questions are emerging about whether this regulation will hold firm—or be revised to reflect market realities.

The electric dream is far from dead, but it is evolving. Instead of a one-size-fits-all approach, carmakers are now embracing diversity in their powertrains, striving to align with consumer preferences, technological advancements, and geopolitical factors. As the 2030s approach, the road to a fully electric future appears more complex—and more flexible—than previously imagined.

Source: Autocar

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Mercedes-Benz Adjusts Course, Maintains Dual Gas-Electric Lineup

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

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BMW had a better start to the year than Audi and Mercedes-Benz

According to Automotive News BMW has taken a commanding lead in the European executive car segment, with the 5 Series outperforming key rivals from Mercedes-Benz and Audi in Q1 2025.

Between January and April, BMW sold 20,402 units of the 5 Series across Europe—an impressive 56% increase compared to the same period in 2024. Notably, over 60% of buyers chose the Touring wagon variant, highlighting strong consumer preference for practicality alongside luxury.

In second place, Mercedes-Benz recorded 15,811 sales of the E-Class, up 19% year-on-year. Audi followed with 13,774 units of the A6 sold, marking a 10% increase over the previous year.

Electric variants are also gaining traction. BMW’s i5 electric model posted strong growth with 8,843 units sold—a 55% jump. It led the premium EV sedan segment, followed by the Audi A6 e-tron (7,460 units) and the Mercedes-Benz EQE (3,740 units).

When it comes to powertrain choices for the 5 Series, buyers are nearly evenly split: plug-in hybrids and diesels each accounted for 30% of sales, while pure electric models followed closely with 27%. Traditional gasoline engines made up the remaining 11%.

Although this generation of the 5 Series debuted just two years ago, BMW is already preparing a redesign—continuing the brand’s tradition of staying ahead of the curve, even amid strong sales momentum.

Source: Automotive News