At its annual shareholder convention in October 2020, Mercedes introduced that, in 2030, greater than 50% of gross sales can be electrical vehicles solely. They then said that in 2030, they are going to solely promote electrical automobiles the place market circumstances permit. And some days in the past they backtracked, saying that the goal of solely promoting electrical vehicles from 2030 is unrealistic.
On the normal assembly of shareholders on 6 October 2020, Mercedes introduced that in 2030 greater than 50% of gross sales can be electrical, in 2039 Mercedes would grow to be carbon impartial, and it could electrify the Maybach and G-Class sub-brands.
Then got here the EU resolution to ban the sale of latest fashions with combustion engines from 1 January 2035, and Mercedes revised its technique, saying that from 2030 it could solely promote electrical vehicles the place market circumstances permit. Mercedes appears to have been caught up within the wave of optimism adopted by a number of producers.
Just a few days in the past, Ola Kallenius, Mercedes CEO, got here again and opined that maybe there was an excessive amount of optimism within the business. Making an allowance for the most recent developments available in the market, Kallenius stated Mercedes will proceed to develop high-tech thermal engines.
The change in technique is probably going the results of a number of components, such because the excessive manufacturing worth of electrical fashions, the challenges relating to the true vary of electrical vehicles, the discount or cancellation of subsidies for electrical automobiles, and the slowdown within the growth of charging station infrastructure.
After years of competing with BMW for the place of the biggest premium producer when it comes to gross sales, with the appearance of the Covid pandemic and chip disaster points, Mercedes has centered extra on revenue margins than on ever-increasing manufacturing figures.
They determined to slender the compact mannequin vary, dropping a successor to the A-Class and B-Class, and expanded the event of the luxurious sub-brands Maybach and G-Class.
However gross sales of electrical fashions, particularly the costly ones, are usually not going nice, particularly in China, but in addition in different areas of the world, and in addition to, there aren’t any extra issues with the funneling of CIPs and elements in the meanwhile.
That’s why Mercedes introduced to the sellers in January 2024 that it’ll focus extra on reasonably priced fashions and fewer on electrical fashions to keep up the gross sales stage. That’s why Mercedes will prioritize the extra reasonably priced fashions within the compact and mid-range (C-Class, GLC).
Additionally, to satisfy demand, Mercedes has knowledgeable US sellers that it’ll enhance the supply of S-Class, GLC, and GLE fashions with Plug-In Hybrid powertrains.
Mercedes is not going to quit on electrical fashions as they nonetheless signify a superb alternative. In different phrases, Mercedes believes that electrical vehicles have good long-term potential however will now give attention to a extra versatile strategy that places profitability first and can alter manufacturing to at this time’s market realities.
This resolution may have an effect on the long-term Mercedes electrification plan, however however, you possibly can’t promote what the market doesn’t need. It is vitally tough to strike a steadiness between environmental safety and profitability.
The luxurious electrical fashions within the EQ, EQE, and EQS vary in addition to their SUV derivatives, EQE SUV and EQS SUV, are way more costly than the equal E-Class/S-Class and GLE/GLS variations respectively, with the decrease high quality supplies and poor entry to the inside in case of EQE/EQS in contrast with E-Class/S-Class.