Source: Gasgoo
As the electrification transition slows and the development costs of electric vehicles continue to rise, Mercedes Benz will suspend the development of the MB.EA pure electric platform for large models such as the S-Class and E-Class.
German media reported that due to cost considerations, Mercedes will further develop the existing Electric Vehicle Architecture, Electric Vehicle Architecture (EVA2), instead of developing the MB.EA large-scale architecture originally planned to be released in 2028.
Mercedes expects the parallel development of internal combustion engine cars and electric vehicles to take longer than originally thought. Mercedes confirmed the news to foreign media, saying: “The pace of the transition will depend on market conditions and the wishes of customers.”
Image source: Mercedes-Benz
Mercedes-Benz Group Chief Executive Ola Kallenius said in February that the company would not be able to meet its goal of fully switching to electric vehicles by 2030 under current market conditions due to a lack of demand.
Mercedes now expects sales of electric vehicles, including pure electric vehicles and plug-in hybrids, to account for half of its total sales by 2030.
Kang Linsong said that the company would continue to sell internal combustion engine models after 2030 if there was enough demand. In February, Mercedes warned that the price of electric cars would remain higher than those with internal combustion engines for years after development due to lower-than-expected demand, and admitted that consumer demand for electric cars had not reached the heights expected.
Mercedes still plans to launch an all-electric G-class SUV, which was unveiled at the Beijing Auto Show earlier this month.
Mercedes faces challenges ranging from cheaper Chinese competitors to the soaring cost of its in-house operating system, MB.OS, and is overhauling its sales model and selling its last remaining company-owned stores to private investors. Mercedes is planning to move to a so-called agency model, where the company controls inventory and offers fixed prices to consumers through online sales.
Several carmakers in Europe are facing slowing sales of electric vehicles as national subsidies to encourage demand are phased out and consumer enthusiasm for electric vehicles cools. In addition, a price war among electric car makers, led by Tesla, has also affected margins.
