After facing a slowdown in sales growth, the global auto industry appears to be feeling more dour about going all-electric in future.
Mercedes-Benz Backs Off From Selling Only EV
This is more evident as Mercedes-Benz is backing off from its plan to only sell electric vehicles after 2030, as the company in a statement said Thursday.
Just three years ago, the situation was absolutely different when the German luxury vehicle manufacturer was feeling quite bullish regarding the plug-in powertrains.
During that time Mercedes-Benz said that by 2030 they would only sell EVs.
Further adding that it would completely phase out gas-powered vehicles, while including the caveat “where markets allowed.”
But now, the picture has changed as the market is not allowing Mercedes to follow through on its plans.
In its fourth quarter earnings statement, Mercedes-Benz declared that it only expects 50 percent of its sales to be all-electric.
This appears to be a very significant drop from the once rosier outlook.
This statement also confirms that Gas and hybrid vehicles will continue to be a part of the company’s future for years to come.
Slow Growth Affecting EV Sales
According to Mercedes, “Customers and market conditions will set the pace of the transformation,” in its report.
Adding, “The company 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 company is planning to use the same strategy in Europe, where EV sales growth outpaces North America’s.
Here, the luxury car manufacturer expects to transition to EV-only sales anytime soon, the company’s CEO Ola Källenius said in a report.
Adding, “It’s not going to be 100% in 2030, obviously… from the whole European market, but probably from the Mercedes side as well.”
Concerns About Charging Time and Reliability
Basically, these comments express more caution about the EV future.
In the meantime, other players including Tesla CEO Elon Musk warned that the company is bracing for significantly slower sales growth in 2024.
On the other hand, the EV-only companies such as Rivian and Lucid expressed their concerns as they expect the production to stay flat this year.
Some brands including GM and Ford, have delayed factory construction or even canceled their models.
It is noteworthy here that the sales are still growing, but the consumers are becoming more discerning about price, while expressing concern about charging time and reliability.
In the meantime, there is a significant increase in hybrid sales as more people see the benefit of hedging their bets while the charging infrastructure gets built out.
