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Mercedes-Benz Shifts Focus to Exclusively Electric Cars by 2025

Mercedes-Benz, the renowned automaker, has unveiled its ambitious plans to produce solely electric vehicles (EVs) starting in 2025. The company’s CEO, Ola Kaellenius, announced that China will be at the forefront of this electrifying campaign, considering it is the world’s largest car market.

In a recent statement to German magazine Automobilwoche, Ola Kaellenius expressed the company’s determination to master electric drive technology with the same precision as digitization. This mastery aligns with the expectations of their esteemed customers, prompting Mercedes-Benz to pivot their focus to electric vehicles exclusively.

Mercedes-Benz is committed to catering to the unique needs of the Chinese market. To achieve this, the company plans to launch a model based on the Mercedes-Benz Education Academy (MB.EA) platform in China. The objective is to create a product that resonates better with local consumers by emphasizing digital features and content.

The move to concentrate on China is well-grounded, as the country has emerged as a significant market for German automobile manufacturers. While local manufacturers currently hold the majority market share for EVs at 81% as of 2022, Mercedes-Benz is eager to tap into this vast potential.

Notably, two Chinese companies, namely Beijing Automotive Group Co Ltd and Geely Automobile Holdings’ boss Li Shufu, hold significant stakes in Mercedes-Benz. This reinforces the importance of the Chinese market for the automaker’s future EV endeavors.

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Mercedes-Benz has already taken substantial steps towards embracing an all-electric future. Recently, they phased out the production of the internal combustion engine (ICE) for the Mercy E-Class model. In its place, the company introduced a model based on advanced battery technology, in line with the presence of the HEV model.

Chief Technology Officer Markus Schaefer disclosed that the production of the new all-electric car will be centralized in Germany and China. The model is set to hit the market in the third quarter of 2023, with sales commencing in the United States and China later that year and in early 2024, respectively.

Markus Schaefer emphasized the commitment to an all-electric lineup by introducing the EQE model as a testament to the company’s dedication to sustainable and eco-friendly transportation solutions.

By 2030, Mercedes-Benz aims to achieve exclusive battery-electric sales globally. However, this goal is contingent on market conditions that promise greater opportunities for the EV market.

To support their vision for an electric future, Mercedes-Benz has decided to significantly reduce investment in ICE and PHEV technology development. Approximately 80 percent of the investment will be diverted towards EV development, amounting to a substantial IDR 44 billion investment between 2022 and 2030.

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