Mercedes Benz to move their EV-only production beyond 2030

There’s a recent buzz with electric vehicles (EVs) since Elon Musk took the production of efficient EVs to another level. While other conventional vehicles are looking to break into the market, Mercedes Benz is holding off on its plan to only sell electric vehicles after 2030, the company announced. 

According to recent reports, there has been a sluggish sales growth in all-electric vehicles which is the main driver for motor giant's decision. Looking back at 2021, Mercedes Benz was confident and ready to hit the market with EVs by 2030 selling only EVs as it would completely face out gas-powered vehicles, “where markets allowed.”

Recent shifts in the market might be hindering Benz from plunging into its original plans. On Friday, the company mentioned in its fourth-quarter earnings statement that it only expects 50 percent of its sales to be al-electric, which is a big decline from their initial forecast. Ultimately, gas and hybrid vehicles would continue to co-exist for years to come. 

Last year, EV sales ran bullish up to 8 percent of total numbers in the US alone, while the European market maintained a 13 percent share. There’s a big factor affecting customer acceptance, which is charging time and reliability when compared to gas-powered vehicles. While sales continue to rise, this underlying feedback could be a big concern for Mercedes Benz.

Without a doubt, the pace for transformation will be set by customers and favorable market conditions, according to Mercedes in a report. Although the company is looking at transitioning into EV manufacturing, it still wants to cater to different customer needs, whether EV, hybrid, or an electrified combustion engine. 

The company’s CEO, Ola Källenius told Reuters that, “it's not going to be 100 percent in 2030, for the European market, but probably from the Mercedes side.” 

Customers will be on the lookout for new updates from the company to know if they will be revisiting their plans or forging on with new realities.