Mercedes-Benz has walked back its pledge to only sell electric vehicles by 2030, citing lower-than-projected consumer demand for EVs.
The automaker now says it will cater to customer needs with both electric and combustion engine vehicles through the 2030s, with EV sales expected to reach only “up to 50%” of total sales by that point.
“Customers and market conditions will set the pace of the transformation,” Mercedes stated. “The company plans to be in a position to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s.”
Tesla CEO Elon Musk also expects significantly slower EV sales growth this year.
The Biden administration is also reportedly preparing to ease its push to mandate EVs after concerns from automakers, dealers and unions given low consumer demand.
Issues like lack of charging infrastructure and performance problems in adverse weather have deterred buyers.
Ford recently cut 1,400 jobs producing its F-150 Lightning EV truck due to weak customer demand.
The industry is adapting expectations as EV adoption has not met automakers’ earlier projections.
