Mercedes-Benz, the renowned German luxury automaker, is shifting its focus away from its original plan to transition to Electric Vehicles (EVs) by 2030 due to weak sales. CEO Ola Källenius recently informed shareholders that the company’s move towards EVs may take longer than initially anticipated.
Previously, Mercedes-Benz had committed to becoming fully electric by 2030 and even announced an all-electric push in July 2021. However, the slow uptake of its electric sedans led to disappointing sales figures and a decrease in profit margins. As a result, the company has decided to continue producing gas-powered vehicles beyond the beginning of the next decade.
This change in strategy is reflective of a broader trend in the industry, with other automakers like Ford also scaling back on production of electric vehicles due to lack of demand. Buick dealers in the US have even opted for buyouts to avoid selling EVs altogether, citing a lack of interest from consumers.
As the automotive industry navigates this shifting landscape, it is clear that the transition to EVs may not be as swift as initially anticipated. Manufacturers are adjusting their strategies to meet market demand and ensure profitability in the years to come.
