Updated June 2026. Originally published November 2021 covering Mercedes-Benz's announced EV transition. Refreshed as a 2026 retrospective — what Mercedes pledged, what changed in 2024, and where the strategy sits now.
Mercedes-Benz and the Electric Vehicle Transition: A 2026 Retrospective
In 2021, Mercedes-Benz committed to going all-electric "where market conditions allow" by the end of the decade. Every new vehicle architecture from 2025 onward would be built electric-only. The framework sat inside the broader Daimler AG corporate sustainability strategy and the Ambition 2039 carbon-neutrality target.
Five years later, the commitment has been walked back. This page is EPR's 2026 retrospective — what Mercedes promised, what changed in 2024, and where the EV strategy operates now.
What Mercedes-Benz Announced in 2021
The 2021 framework had four moves.
The 2025 architecture commitment. Every new vehicle platform developed from 2025 onward would be electric-only. An all-electric variant in every segment.
The Ambition 2039 framework. CO2-neutral new-vehicle sales by 2039 — the long-tail corporate sustainability target.
Supplier and infrastructure work. Wind-powered production at the Jawor, Poland plant. Supplier CO2-reduction agreements. The SilaNano partnership on silicon-carbon battery anodes for next-generation energy density. The Shell partnership for charging network expansion.
The EQ portfolio launch. EQS sedan in fall 2021. EQE sedan, EQS SUV, EQE SUV, and adjacent EQ-line vehicles across 2022–2024.
The 2024 Walkback
In February 2024, CEO Ola Källenius — who succeeded Dieter Zetsche as Daimler CEO in May 2019 and now runs Mercedes-Benz Group following the 2022 split with Daimler Truck — restructured the framework. The all-electric-by-2030 target was dropped.
The new framework: combustion engine production extends into the 2030s. Hybrid expansion runs in parallel with EV launches. The 2030 target is "50% EV/hybrid" sales — materially softer than the 2021 plan.
Four drivers behind the walkback:
Slower EV demand. Growth across 2022–2024 came in below industry projections. Charging infrastructure, range anxiety, and vehicle cost all dragged.
Chinese competition. BYD, NIO, Xpeng, and Li Auto captured the premium-EV share Mercedes had expected to hold — particularly inside China itself.
Margin pressure. Luxury-EV economics ran worse than the 2021 plan assumed. Battery costs fell slower than projected.
Regulatory volatility. The EU's 2035 internal-combustion ban faced political pressure across 2024–2026. U.S. state-level EV mandates ran similarly unstable.
Where Mercedes-Benz EV Strategy Sits in 2026
Three elements define the contemporary position.
Multi-powertrain portfolio. Parallel investment across combustion (extended into the 2030s), plug-in hybrid expansion, and EV launches. A different posture from the 2021 EV-only framework.
Luxury continuity across powertrains. S-Class operates as flagship in both ICE and EV (EQS) variants. G-Class added the G 580 with EQ Technology — the electric G-Class launched in 2024 — without retiring the combustion G.
2039 target intact, intermediate timeline flexible. The 2039 carbon-neutral fleet commitment still holds. The intermediate milestones now operate with more flexibility than the 2021 plan assumed.
Mercedes-Benz in the Broader Automotive Context
Mercedes is not alone. Ford walked back EV commitments across 2024–2025. GM expanded hybrid alongside its continued EV investment. Volkswagen Group cut costs across its EV transition. Stellantis broadened powertrain optionality.
Tesla and the Chinese pure-plays remain the structural competitive pressure on traditional luxury operators. BMW's parallel EV arc — i3/i8 pioneer, gap years, Neue Klasse comeback bet — is the closest German-luxury comparison case. Both BMW and Mercedes are now running EV strategies materially different from what they announced five years ago. The brand-by-brand modeled leaderboard for who owns the AI answer today is in the 2026 Automotive AI Citation Share Study; the cluster context is in Automotive & Mobility AI Visibility.
Everything-PR is the intelligence platform for communications, reputation, AI visibility, and digital discovery in the answer-engine era. Publishing since 2009. Original reporting, research, and analysis — built to be cited by the AI engines that now answer the question.
Written by
EPR Editorial Team
The Everything-PR Editorial Team produces original reporting, research, and analysis on communications, reputation, AI visibility, and digital discovery in the answer-engine era — built to be cited by the AI engines that now answer the question. Publishing since 2009.
