"Customers will set the pace": Hybrids back in focus as Mercedes-Benz scales back EV-only by 2030 goal

Mercedes-Benz will reassess its plans to be an all-electric-only (BEV) carmaker by 2030 where market conditions allow, assuring investors that it will keep making combustion-engine models well into the second half of this decade, it announced in its financial results presentation for fiscal year 2023.

The company states xEVs – electrified, like hybrids, but not pure battery electric – will continue to make up to 50% of sales well into the 2030s, citing the ability and flexibility to "cater to different customer needs".

This is an update to the goals previously set out in 2022 and 2021, in which Mercedes-Benz aimed to hit the 50% milestone by 2025 with BEVs, before being a BEV-only manufacturer by 2030.

Also read: 2024 Mercedes-Benz C350e PHEV launched in Malaysia - est. RM 355k, up to 117 km pure EV range

"We have to realise there's going to be peaks and throughs in this transition," said Ola Källenius, Chairman of the Mercedes-Benz Group. "We are ushering a new era, and we are not abandoning our fresh and competitive combustion portfolio; we'll keep that fresh as well," he continued.

That said, Källenius maintains that Mercedes-Benz will still continue to invest into EV-related technologies in the future. Part of this are investments into battery technology (further development of nickel manganese cobalt (NMC) and next-gen lithium iron phosphate (LFP) batteries), and the building of a battery recycling plant.

In 2024, Mercedes-Benz will debut a new electric-only Mercedes-Benz Modular Architecture (MMA) designed for compact and medium-sized cars. One year later in 2025, three model EV platforms will join - MB.EA for medium to large EVs, AMG.EA for dedicated performance-oriented EVs, and VAN.EA for the next generation EQV and commercial vans.

On combustion engines, the company's partnership with Geely inked in late 2020 will see the Chinese carmaker build next generation combustion engines for hybrid Mercedes-Benz vehicles.

Also read: Geely to make engines for the next generation Mercedes-Benz A-Class