Mercedes-Benz backtracks on plan to go full electric by 2030

Mercedes-Benz has abandoned its goal of exclusively selling electric vehicles in major markets by 2030, CEO Ola Källenius said on Thursday during the automaker’s annual general meeting.

Mercedes first announced the goal in 2021 but slower than expected EV sales means the automaker now plans to continue offering gas-powered cars well into the next decade, the CEO said.

He also said Mercedes will delay by five years an interim goal of combined hybrid and electric vehicles accounting for 50% of sales by 2025. Even in Europe, EVs only made up 11% of Mercedes’ sales in 2023, and adding sales of hybrids only lifts the share to 19%.

Citing additional comments made by the Mercedes CEO, Reuters reported that the automaker is prepared to continue building gas powertrains into the next decade and is in a position to continue updating the powertrains should the market demand them.

Mercedes will soon launch a next-generation platform that supports both hybrid and electric powertrains. Known as the MMA, the platform is designed for compact cars and will debut shortly in a redesigned CLA-Class. All of the cars based on the MMA platform will likely be available next decade.

Eventually, Mercedes may have to go the full-electric route in certain markets where legislation could force bans on the sale of new vehicles still equipped with gas or diesel powertrains. Even in the European Union, where Mercedes is based, such plans are in place.

Planned E.U. legislation calls for a 100% reduction in carbon emissions from passenger cars and light vans by 2035, though there may be loopholes in place, for example allowing vehicles designed to run on carbon-neutral e-fuels. The legislation is part of the E.U.’s overarching plan to become climate neutral by 2050.