Mercedes-Benz Continues To Produce Petrol Engines While Focusing On Electric Mobility
Electrification takes a step back as petrol returns to centre stage.
By Syazwan Bahri — 23 Feb 2024, 04:17 PM
The German marque Mercedes-Benz adjusted its plans for electric mobility
Mercedes-Benz has revised its approach to the electric vehicle (EV) transition, as the demand for EVs has been slower than anticipated. The German automaker announced in an investor statement today, 23 February, that it is recalibrating its EV transition pace, reducing the number of electric models it aims to sell by 2030 by half.
Despite the rising demand for EVs, the internal combustion engine (ICE) models currently still have a significant demand and therefore both play an important role at this transition point. The pace of this shift is determined by customer preferences and market dynamics, yet Mercedes-Benz's primary focus lies on advancing electric mobility rather than combustion engines.
Despite setting major plans back a couple of years, Mercedes-Benz remains agile through this setback, adapting its strategy to the evolving market conditions
In response to the evolving market dynamics, Mercedes-Benz emphasised its commitment to remaining "strategically focused" and "tactically flexible."
The company is awaiting the alignment of factors such as increased demand, maturation of charging infrastructure, and streamlining of the supply chain. This approach reflects a pragmatic stance as the automotive industry navigates the transition to electric vehicles.
Following this announcement, the carmaker's stock price surged by 5.9%. Moreover, investor confidence was further bolstered by the unveiling of a US$3.3 billion (RM15.77 billion) share buyback program late on Wednesday, 21 February.
Mercedes-Benz has offered a couple of fully electric models in recent times
The German marque offers more than petrol-powered vehicles, with Mercedes-Benz Malaysia offering seven all-electric models starting from RM296,888.
The brand offers two electric-powered sedans in the form of the EQE and the EQS. The SUV offerings are more generous, with five models: the EQA, EQB, EQC, EQE, and the EQS.
Mercedes-Benz isn't the only manufacturer that is facing challenges in the EV market at the moment
Responding to a question about its next-gen vehicles during a recent earnings call, Tesla chief Elon Musk cautioned that the company is anticipating a notable slowdown in sales growth for 2024.
Meanwhile, EV-exclusive brands such as Rivian and Lucid indicated their expectations for production levels to remain steady this year. Conversely, other automakers like GM and Ford have postponed factory construction plans or scrapped certain models amidst these shifting dynamics in the automotive industry.
