Mercedes-Benz CEO tones down electric vehicle expectations

The CEO of German carmaker Mercedes-Benz has toned down expectations of EV demand, telling CGTN Europe it will keep making engine vehicles well into the next decade.

Mercedes had been preparing for all-electric sales by 2030 but now expects the electric and hybrid market to make up only 50 percent of its sales by then.

Ola Källenius, CEO of Mercedes-Benz Group AG, speaking to CGTN Europe in an exclusive interview, said the company can afford to be flexible with how it moves forward in the electric vehicle market.

"If you look at Mercedes-Benz cars, it was actually 73 percent of battery electric growth last year. This is very significant but we can't expect this transformation to be a straight line," he told CGTN's Peter Oliver.

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Källenius said there would be "peaks and troughs," with factors such as extending charging infrastructure or incentivization that will help drive the market. He added: "In this case we are happy that we are flexible in our plans, we can choose to produce battery electric vehicles or high-tech combustion vehicles so we will go with the market but in terms of investment, we are full speed ahead with new vehicles in the pipeline."

China is dominating the electric vehicle market, with Chinese brands now representing approximately half of all EVs sold globally. Mercedes says it is not worried about China's dominance.

"We take all competitors seriously, the ones that we know and new competitors coming but you have to focus on your own strategy; you have to focus on delivering your brand," Källenius said.

"We are present in more than 150 countries in the world. We went to China in a big way 15-20 years ago so we will focus on exploiting growth for Mercedes in every market in the world."

In its fourth quarter earnings, the German carmaker exceeded expectations, with the CEO describing 2023 as a strong year with solid results. Revenue rose by two percent in 2023 and shares jumped 5 percent after the earnings were released.

So where does the Mercedes CEO see the future of the brand? 

Källenius added: "If you're looking for the perfect combination, the perfect blend between innovation and technology, which Mercedes has always stood for as the ultimate and first pioneer of the auto industry. 

"But if you want to combine that with desirability, timeless elegance and iconic luxury, it is that perfect blend that Mercedes delivers. That's what we will focus on and try to delight customers around the world."

Interview by Peter Oliver.

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