Mercedes-Benz to Shift Focus to Electric Vehicles by 2025

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Mercedes-Benz will shift its focus entirely to electric vehicles in 2025 and be prepared to sell nothing but electric cars by 2030, the company said Thursday, adding a caveat that the transition depends on “market conditions.”

Mercedes thus joined a growing list of companies including General Motors, Stellantis and Renault that have declared their intention to hasten the demise of internal combustion engines in favor of battery powered vehicles with no tailpipe emissions.

Increasingly, they have little choice. The European Union will effectively ban new cars with internal combustion engines in 2035, while Britain, Norway and other countries have also set expiration dates for vehicles that run on fossil fuels.

Mercedes, the luxury carmaking division of Daimler, also faces pressure from Tesla, which has been stealing well-heeled buyers and is building a factory in Berlin.

Mercedes said it would invest 40 billion euros, or $47 billion, on electric cars, vans and light commercial vehicles by 2030. In 2025, the company will introduce three new electric vehicle platforms — collections of components and technology that can be shared among different models — and will no longer develop platforms for internal combustion engines.

The platform shift is significant because it allows Mercedes to exploit some of the design potential of battery powered vehicles, such as more interior space. Electric motors are smaller than internal combustion engines and do not require large transmissions.

Mercedes said that, working with partners, it would also establish a global network of plants to produce batteries and would produce its own electric motors.

“The EV shift is picking up speed — especially in the luxury segment, where Mercedes-Benz belongs,” Ola Källenius, the chief executive of Daimler, said in a statement. “The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade.”

But the company stopped short of promising not to sell any more cars with internal combustion engines. Some regions of the world by 2030 may not have the charging networks that make owning an electric vehicle practical.

“Mercedes-Benz will be ready to go all-electric at the end of the decade, where market conditions allow,” the company said in a statement.

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