Mercedes-Benz Group is poised to launch several new models in the next two to three years, addressing the limitations of its initial battery-powered cars while boosting investment in profitable fuel-burning vehicles. CEO Ola Källenius emphasized the need for flexibility into the 2030s while maintaining the goal of carbon neutrality by 2039. Although committed to electrifying its entire lineup this decade, Mercedes will keep its combustion-engine cars competitive. 

Despite Mercedes’ EV lineup lagging behind rivals like BMW, with sales dropping 9% in the first quarter to 50,500 units compared to BMW’s 82,700, the company plans to revamp its offerings. The underperforming EQS, launched in 2021, led to Mercedes adjusting its target from exclusively selling EVs by 2030 to achieving around 50% EV sales by then. 

Next year, new vehicle generations will debut, starting with the CLA coupe and later the GLB SUV, both featuring advanced technology and spacious designs. Mercedes will also introduce an electric compact G-Wagon in 2026. Despite the EV focus, Mercedes will continue profiting from combustion-engine cars, seeking savings in purchasing and cost reduction. 

Mercedes aims to unlock up to €10.5 billion by selling its remaining stake in Daimler Truck Holding AG. Additionally, due to slowing EV demand, the company is pausing two of its three joint European battery plant developments with Stellantis NV and TotalEnergies SE, aligning capital allocation with EV adoption rates. 

Geopolitical tensions, including potential EU tariffs on China-made electric cars, add to the challenges. By balancing investments between EVs and combustion-engine vehicles, Mercedes-Benz aims to navigate the evolving automotive landscape and meet customer demands, maintaining a strong ESG commitment while progressing toward a carbon-neutral strategy. 

Sources: 

https://www.cbtnews.com/mercedes-benz-adjusts-strategy-to-address-challenges-in-ev-market/ 

https://timesofindia.indiatimes.com/auto/cars/mercedes-benz-adjusts-ev-strategy-amidst-slower-demand-growth/articleshow/107917405.cms