Reporting on the Mercedes-Benz Group's results for 2023, the company announced that it is abandoning its previous commitment to produce exclusively electrified models. Mercedes-Benz will continue to produce vehicles with internal combustion engines for the next decade.
Mercedes-Benz now expects electrified vehicles (including hybrids) to account for 50 per cent of total sales in 2030. Under the 2021 plan, this figure was expected to reach 100 per cent.
In 2023, Mercedes-Benz's revenue rose 2.1% to $153.2bn, but operating profit fell 4% to $19.7bn.
Electric vehicles (including hybrids) accounted for 21.8% of sales in the fourth quarter of last year and 19.7% for the full year. Mercedes said it expects electric cars and hybrids to account for between 19% and 21% in 2024.
Electric car sales rose 61.3 per cent to 240,668 units. PHEV sales fell 12.5 per cent. Mercedes-Benz van sales were up 7.8% last year, with electrified vehicles accounting for 5.1%.
Mercedes-Benz officials attributed the revised plans for electric cars and hybrids to rising inflation, higher supply chain costs and the cost of future technology.
Sources: Reuters, Mercedes-Benz
