Mercedes-Benz has been a mainstay in the automotive field, and has a name that truly brings along thoughts of luxury and class.
People will have to wait a tad longer before electrification goes hand-in-hand with the German automaker, as the company said this week it would push back its goals for EV sales by five years from 2025 to 2030.
Mercedes-Benz executives detailed the plan during their Earnings Call, where they now hope to have electric vehicles and hybrids make up at least 50 percent of their sales by 2030. Its goals for this to occur in 2025 were announced three years ago in 2021, but slow demand caused the timeline adjustment.
CEO Ola Kaellenius said last year that markets that had treated Mercedes-Benz well in terms of electrification goals were still not showing enough promise. Europe, where the company has had the most success in terms of EVs, only saw 11 percent of its overall sales be made up of pure EVs. Factor in hybrids, and it was just 19 percent, according to Reuters.
Although automakers and suppliers are setting the record straight that they have high hopes for EVs, demand has ultimately not aligned with how aggressive some had expected.
In order to reach that 50 percent goal, customers have to show that they’re willing to buy that many EVs, and they simply have not been willing to do that, at least not yet.
Because of the delay in electrification concentration goals, Mercedes-Benz is focusing on combustion engine cars and will update the technology in them.
It said similar things in 2023 as it said the “brutal” EV sector squeezed margins to the point that it planned to lean on ICE sales to bolster earnings.
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