Between 2022 and 2030, Mercedes-Benz will invest over €40 billion ($47.2bn) in electric vehicles to enable this shift
Daimler, a German car maker has announced that its Mercedes-Benz brand would manufacture electric vehicles (EVs) by the end of the decade, where market conditions allow.
By next year, it will have electric vehicles (EVs) in all segments, the company said, and from 2025, “all newly launched architectures will be electric-only”, with consumers also having the option of purchasing electric vehicles alternative for every model the company makes.
Until 2030, the company will keep producing existing combustion models and stop making them afterwards.
“The EV shift is picking up speed, especially in the luxury segment, where Mercedes-Benz belongs. The tipping point is getting closer and we will be ready as markets switch to electric only by the end of this decade”, said Ola Kallenius, chief executive of Daimler.
Between 2022 and 2030, Mercedes-Benz will invest over €40 billion ($47.2bn) in electric vehicles to enable this shift. In the year 2025, the company will launch three new electric-only vehicles.
“This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz”, Mr Kallenius added.
Restrictive emissions and fuel-efficiency regulations have forced car manufacturers to focus on vehicles that are more environmentally friendly.
In March, the Swedish car maker Volvo said it would make full electric vehicles by 2030. In February, Jaguar Land Rover said its luxury brand Jaguar will make all electric vehicles by 2025 as it aims to become a net-zero carbon business by 2039.
In January, the largest US car maker, General Motors, said it plans to eliminate petrol and diesel light-duty cars, including SUVs, by 2035. South Korean car maker Kia is planning to launch its first EV in the first quarter of this year, while Germany’s Volkswagen, the second-largest car maker by sales last year, plans to unveil about 70 new models of electric vehicles by the year 2028.
Mercedes-Benz said it needs a battery capacity of more than 200 Giga-watt hours and it plans to set up eight Giga-factories for producing cells, together with its partners around the world.
“Next-generation batteries will be highly standardised and suitable for use in more than 90 per cent of all Mercedes-Benz cars and vans”, the company said.
Eight Mercedes-Benz electric vehicles will be produced at seven locations on three continents by next year. By 2022, all passenger car and battery assembly sites run by the company will switch to carbon neutral production.
The company also plans to install a new battery recycling factory in Kuppenheim, Germany, which will start operations in the next two years.