Mercedes-Benz To Keep ICE And EV Platforms Separate Amid Market Fluctuations: Future Plans And Strategies

Updated: Thursday, October 17, 2024, 12:30 [IST]

Mercedes-Benz plans to maintain distinct platforms for internal combustion engine (ICE) and electric vehicle (EV) models. CEO Ola Källenius stated that this strategy will continue as long as there is demand. He emphasised the importance of offering models without compromising on features, space, technology, or performance. Bespoke architectures are necessary to achieve this goal.

Källenius highlighted the challenges of converting ICE models to EVs or vice versa. He cited the upcoming S-Class, expected in late 2028, as an example where maintaining performance and interior space would be difficult if converted between ICE and EV. "If you don't believe that the market is 100 percent electric at that point, you have to have the choice for both," he explained.

Investment Strategy for Mercedes-Benz

The CEO acknowledged that investing in two versions adds some financial burden. However, he believes that with intelligent planning, additional investment can be kept manageable. This approach involves making non-powertrain components common between ICE and EV models to reduce costs.

Mercedes has already invested in new Euro 7-compliant combustion engines and hybridisation efforts. This positions the company strongly among established manufacturers to adapt to market changes. Källenius noted that Mercedes' commitment to going all-electric was always conditional on market readiness.

Market Dynamics and Future Plans

Källenius expressed surprise at the slower-than-expected adoption of EVs. Initial projections anticipated a quarter of sales being EVs by now; however, actual figures are less than half of that estimate. Despite this, Mercedes continues its dual strategy with both ICE and EV offerings.

The convergence of Mercedes's EV and ICE lines has begun with models like the electric G-Class being named G580 instead of EQG. This trend will persist as the EQ sub-brand is phased out over time. The company aims to extend its ICE strategy beyond initial expectations if market conditions remain mixed.

Mercedes-Benz India: Current Portfolio

In India, Mercedes-Benz offers a diverse range of both EV and ICE vehicles. The brand has launched 12 models this year, including the latest E-Class. Two more launches are anticipated before year-end, showcasing their commitment to catering to varied consumer preferences.

Källenius reiterated that customer satisfaction remains paramount for Mercedes-Benz. "The customer comes first in this equation," he said, adding that it will be an exciting decade for Mercedes customers with continued innovation and quality offerings.