Mercedes Benz is reevaluating its EV strategy and will continue to produce combustion engines because of the gradual global acceptance of EVs.

One of the biggest luxury car manufacturers, Mercedes Benz is rethinking their EV strategy and has changed their plans by continuing to produce their gasoline engines. “We will keep manufacturing internal combustion engines till the end of this century, thus extending their time period from the prescribed deadline”, as clarified by CEO of Mercedes Benz, Ola Kallenius, due to slower EV adoption. 

Strategical Change 

Kallenius expressed the revised strategy of the luxury manufacturer as Mercedes earlier had plans to go all-electric where EV technology is at the rise till 2030. But due to change in market dynamics they will continue with high-tech hybrid and combustion powertrains in their existing line-up in the future. 

Kallinus expressed his views and said, “In today's modern era, it is practical and logical to have both powertrains such as EVs and internal combustion engines as an option for users”, thus balancing a perfect chord between both powertrains amid regional demand variations and infrastructure support. 

Growth in the EV market remains Strong

As Mercedes is still doubtful about the growth of electric mobility, market figures indicate a different story as going by worldwide adoption of EVs, the sales of EVs are on a constant rise. According to the International Energy Agency, the global sales of EVs have seen a major rise of more than 25% in 2023 to 17 million units globally. If we look at the sales of EVs globally, China is leading at the forefront of the EV market. 

The Road Ahead

It is clearly evident that Mercedes is following the strategy of its German rivals BMW and Audi. Thus it is confirmed that all three brands will be implementing a dual-technology approach, striking a perfect balance between internal combustion engines and EVs, by making the mobility practical and accessible with different powertrain options for the users, indeed a welcome decision for ICE fans!!

However, manufacturers continuing with their petrol counterparts will arise certain challenges in the market such as how automobile companies will be meeting the European Union's 2035 ban on the sale of new ICE cars. 

Some key players are also waiting in silence for the probable delays in the regulation, but EU policymakers have projected a very little probability on this decision. 

However, it will be interesting to see the future take of key automotive players on this issue, but currently Mercedes Benz will be striking a perfect blend between both powertrains, thus moving forward in two boats which seems to be innovative and progressive, according to the market dynamics.