Mercedes-Benz had set ambitious targets for the rise of electrified vehicles, aiming for hybrids and EVs to make up 50 percent of its sales by 2025. However, facing the reality of slower adoption, the company has adjusted its goal for 2024 to just 21 percent of total shipments.
As a result, Mercedes-Benz has decided to extend the life cycle of its A-Class model, originally slated to be discontinued in 2024, until 2026. The A-Class serves as the entry-level model into the Mercedes lineup, priced at €37,401 in Germany. CEO Ola Kallenius acknowledged that price parity between combustion engine cars and electric models is still “many years away,” contributing to the decision to maintain production of gasoline cars.
Despite the shift towards electrification, Mercedes-Benz is developing a new family of compact cars, including the CLA, CLA Shooting Brake, GLA, and GLB, on a newly developed MMA platform that supports both gas engines and electric drivetrains. Plans for the A-Class hatchback, A-Class sedan, and B-Class minivan remain undisclosed, although a new “Little G” SUV is in the works.
Looking ahead to 2030, Mercedes-Benz anticipates plug-in hybrids and EVs to represent up to 50 percent of total shipments. This marks a change from previous projections, reflecting the slower adoption of EVs than initially anticipated.
While Mercedes-Benz is committed to transitioning to electric vehicles, it acknowledges that customer preferences and market conditions will dictate the pace of the transformation. As a result, the company intends to continue producing gasoline cars into the 2030s to meet consumer demand.
Despite plans for electrification, there are indications that the European Union’s proposed sales ban on new cars with emissions in 2035 may be delayed. Porsche’s Chief Financial Officer Lutz Meschke suggested that discussions around the end of the combustion engine could lead to a postponement, potentially prolonging the era of internal combustion engines.