Mercedes-Benz is backing off its plan to only sell electric vehicles after 2030

Mercedes-Benz is backing off its plan to only sell electric vehicles after 2030

In 2021, the German automaker announced its intention to sell only electric vehicles by 2030, "where market conditions allow." However, it now appears that market conditions may not permit this.

In its fourth-quarter statement released on Thursday, the company stated that it would let customer demand "determine the pace" at which its fleet transitions to electric or remains gas-powered. As of the latest release, Mercedes-Benz anticipates that only 50% of its overall vehicle sales will be electric by 2030.

During a September interview at the Munich car show, Mercedes CEO Ola Källenius hinted at a more tempered view of the EV market.

"It's not going to be 100% in 2030, obviously... from the whole European market, but probably from the Mercedes side as well," he said, as reported by Reuters.

Mercedes-Benz expects its electric vehicle sales to represent approximately 19% to 21% of new car sales this year.

Mercedes is not alone in reassessing its electric vehicle plans. Consumer demand for EVs has waned as buyers seek more affordable options and encounter challenges associated with owning a vehicle that requires charging.

EV owners have reported difficulties in finding functional public chargers, particularly on long road trips. Additionally, high electricity rates at home have made home charging a more expensive option than initially anticipated by automakers.

"This is a challenging environment," said Harald Wilhelm, the chief financial officer of Mercedes-Benz, to analysts in 2023. "I can hardly imagine the current status quo is fully sustainable for everybody."