FRANKFURT, Germany – Daimler AG’s luxury car brand Mercedes-Benz says it is advancing its transition to electric cars, plans to double sales by 2025 and outline a market scenario In which new car sales will “briefly” be fully electric. by the end of the decade.
“The shift to electric vehicles is gaining momentum – especially in the luxury segment, where Mercedes-Benz belongs,” said Ola Kalenius, CEO and head of Mercedes-Benz division of Daimler AG. We will be ready as markets switch to electric only by the end of this decade.”
The company plans to invest $47 billion in battery-powered vehicles between 2022 and 2080. It says it also intends to work with partners on setting up eight factories that produce battery cells — individual components that are assembled into larger battery packs in various vehicles.
The company said on Thursday that it will make up half of its sales by 2025 as battery-only or plug-in hybrid cars, up more than a quarter from previous forecasts. Such vehicles accounted for 10.3 per cent of total sales in the first six months of this year. The company sold 39,000 battery cars and 121,500 plug-in hybrids, which combine a battery with internal combustion.
The company’s statement updating its electric-vehicle strategy portrayed going fully electric as the “market scenario” for which the company would abandon sales of diesel or gasoline cars, rather than a fixed time frame. intends to be ready. The company said it is “getting ready to go power by the end of the decade, where market conditions allow.”
In Europe, the share of electric cars is increasing, driven by heavy regulation and government incentives. Last year, electrically chargeable cars made up 10.5% percent of the European market.
Mercedes said on Thursday that all newly launched vehicle architectures from 2025 will be electric-only, referring to mechanical structures that can be shared between different models.
The company has said that its model lineup will be climate neutral throughout its production range until 2039, but did not specify a date to stop selling internal combustion engines. For now, sales of highly profitable gasoline and diesel sedans and SUVs are providing cash to invest in the transition to electric cars.
Other carmakers, including Volkswagen’s Audi, General Motors and Volvo, have also indicated they are moving away from gasoline and diesel engines in the long term.