In 2021, Mercedes revealed its goal to shift entirely to electric cars by the end of the decade, as long as the market allows it. They stated that starting from 2025, all new vehicle designs would be exclusively electric. Currently, Mercedes offers electric vehicles like the EQS and EQE sedan and SUV models, along with the EQB electric SUV.
However, recent announcements from Mercedes indicate a shift in their electric vehicle commitment. They now plan to continue producing gas-powered vehicles well into the next decade. Instead of aiming for 100% electrification by 2030, they now expect electrified vehicles (including hybrids) to make up only 50% of their total sales by that year.
This change comes after a 21% decrease in net profits for Mercedes in the fourth quarter. As a result, they are slowing down their transition to electric vehicles, stating that they will continue to offer options to cater to different customer preferences until at least the 2030s.
Electric Car Sales | Sales Figures |
---|---|
Total Sales | 2,043,800 units (0.2% increase compared to 2022) [Source] |
All-electric (BEV) Sales | Over 222,000 units (11% of total sales, 73% growth compared to 2022) [Source] |
Q4 Sales | 66,200 units (including Smart) (12.9% of total volume in Q4) [Source] |
Profit | Amount (€) |
---|---|
Earnings before interest and taxes (EBIT) | €14.7 billion (9% increase compared to 2022) [Source] |
Net profit | €8.7 billion (14% decline compared to 2022) [Source] |
In the last part of the year, Mercedes made less money in important places like the US (-7.4%) and Germany (-2.8%).
Even though they earned more overall throughout the year, with revenue increasing by 2.1% to $153.2 billion, their profits dropped by 4% to $19.7 billion in 2023.
However, electrified vehicles, which include hybrids, made up 21.8% of sales in the last quarter, with a share of 19.7% for the whole of 2023. Mercedes predicts that electric and hybrid cars will make up 19% to 21% of their sales this year.
In 2023, sales of all-electric vehicles increased by 61.3% to reach 240,668, while sales of plug-in hybrid electric vehicles (PHEVs) decreased by 12.5%. Mercedes-Benz vans experienced a sales growth of 7.8% last year, with electrified vehicles making up 5.1% of those sales.
So that’s Toyota and M-B agreeing this strategy within day’s! Outstanding and the correct decision. Hopefully large gas guzzling AMG motors will be about for many years to come.
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Mercedes is confident that its new electric vehicles (EVs) will be a hit, as they plan to reduce costs by about 30%. They say their entry-level EVs, like the electric CLA based on the upcoming MMA platform, can go approximately 466 miles (750 kilometres) on a single charge, according to the WLTP range test.
Moreover, these EVs can gain up to 250 miles (400 kilometres) of range with just a 15-minute fast charge.