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Mercedes-Benz scales back electric ambitions as EV pessimism grows

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A red Mercedes CLA at CES in 2023

Enlarge / Mercedes-Benz's next EV will be the CLA, which makes use of the very efficient powertrain tech we tested in the Vision EQXX concept. (credit: Mercedes-Benz)

Mercedes-Benz is the latest automaker to dial back its electric vehicle ambitions. In 2021, the company published its electrification plan, which called for it to sell only battery EVs from 2030, at least in countries with the infrastructure to support that. Today, Mercedes published its annual results for 2023, and it's clear that the company has little confidence that any region will be ready for EVs-only sales by that date.

Mercedes isn't giving up on EVs, but it now says it only expects electrified vehicles—which include hybrid EVs as well as BEVs—to account for half its overall sales in the second half of this decade. While it says it is taking the necessary steps to go all-electric, it also "plans to be in a position to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s."

The change, evidently, has been percolating within Mercedes' board rooms for some time. Last September, CEO Ola Kaellenius warned that even Europe would not be ready for an entirely electric lineup by 2030.

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