Mercedes-Benz reduces EV outlook

Mercedes-Benz still aims to go all electric but says customers and market conditions will set the pace.

The company plans to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s.

It mainly blames uncertainty in the global economy and automotive markets for the EV handbrake, adding supply chains may be impacted by geopolitical and trade issues.

From this year, Mercedes-Benz says it will introduce a new guidance KPI – an “xEV” share of sales for new cars and vans which will replace the carbon dioxide emissions KPI for the new car fleet in Europe and reflects the Mercedes-Benz Group’s global activities.

It expects 2024 Mercedes-Benz Car sales to remain around last year’s levels with the ”xEV” share at about 19%-21% of new car sales and forecasts prices are likely to be around 2023 pricing.

Mercedes-Benz Vans sales are expected to soften in H2 2024 and be slightly lower in 2024 with a strong first quarter, the group says. “The xEV share is expected between 6% to 8% with the new eSprinter available for sale in the beginning of 2024.”

Electric architecture VAN.EA investment and other research and development spending is likely to “significantly” exceed 2023 levels, the company says.

The company expects” xEV” sales to reach up to 50% of overall sales in the second half of the decade.

“Factories are retooled to follow demand to capture the tipping point into an all-electric era, starting 2025 with the new electric CLA.

“While the upcoming models will set standards in improving efficiency and charging time, the company believes that the battery costs per kilowatt hour can be reduced by more than 30% in the next few years, thanks to optimised cell and module design, improved vehicle integration, further development of cell chemistries (such as NMC, next generation LFP), cell updates during the lifecycle and continuous improvement agreements with suppliers.”

Company-owned operating system MB.OS is expected to mark an important milestone in the field of car software, while Mercedes-Benz will continue to pioneer advancements in automated driving, it says.

Mercedes-Benz Group warns EVs will remain more expensive than their internal combustion engine (ICE) siblings for years to come as the luxury-car maker braces for cooling demand for EVs, says Bloomberg.