Luxury car manufacturer Mercedes-Benz has abandoned its target of achieving a complete transition to manufacturing solely electric vehicles by the year 2030.
Initially announced in 2021, the German automaker cited “market conditions” for the shortfall in electric vehicle (EV) sales, with consumer demand falling short of expectations, a trend observed by nearly all major automakers.
In its investors outlook, the company indicated a shift in strategy, stating its intention to remain flexible to cater to diverse customer preferences, offering options such as all-electric drivetrains or electrified combustion engines “well into the 2030s.”
Nevertheless, Mercedes-Benz projected that EV sales would constitute half of its total sales in the latter half of the 2020s.
The company emphasized that “customers and market conditions will determine the pace of the transformation,” attributing the decision to factors such as an “exceptional degree of uncertainty” in automotive markets. Mercedes-Benz highlighted various geopolitical tensions, including conflicts in the Middle East and Ukraine, as well as strained relations between the United States, China, and the European Union.
Supply chain disruptions and bottlenecks in critical production components, particularly raw materials and energy, were identified as significant risks. Mercedes-Benz cited inflation and numerous other factors contributing to the moderate uptake of EVs.
