Mercedes-Benz remains steadfast in its electrification strategy despite a slowdown in global sales and lingering skepticism, according to the brand’s CEO for the Australia-Pacific region.
Last year, Mercedes-Benz ranked as the fifth best-selling electric vehicle (EV) manufacturer in Australia, trailing behind Tesla, BYD, MG, and Volvo. Notably, the brand achieved this status with a much broader range of electric vehicles than its competitors, which include the EQE sedan, EQS liftback, EQV and eVito Tourer people movers, and four SUVs: the EQA, EQB, EQE SUV, and EQS SUV. The Mercedes-Benz Vans division also offers the eVito and eSprinter commercial vehicles.
Despite its expanded EV lineup, Mercedes-Benz has faced a decline in sales in Australia. By the end of September, car sales were down 31% compared to the same period last year, while van sales decreased by 34.8%.
Jaime Cohen, CEO of Mercedes-Benz APAC, expressed the company’s commitment to its electrification path, stating, “The expectation was that electric adoption would happen faster. Now it has slowed down a little bit, but the trend continues to be towards electric. So for us, the end destination is to do electric.”
Cohen acknowledged that the company must adapt to the changing pace of the market, noting that customer experiences vary widely. He highlighted concerns about range anxiety and the accessibility of charging stations as factors influencing consumer decisions.
Earlier this year, Mercedes-Benz adjusted its global target to become an all-electric brand by 2030, extending its timeline by five years due to cooling demand for battery-powered vehicles in key markets. As a result, sales of petrol and diesel-powered vehicles will continue for the foreseeable future.
“Electric is a personal decision of what you want to drive and what you feel comfortable driving,” Cohen said. “Everybody has to feel comfortable with their driving habits before transitioning to an electric car. Adoption is still happening—some consumers are fully committed to electric, while others are testing the waters. We believe that in a few years, electric vehicles will be the only option available to everyone. The pace may have changed, but the direction remains clear.”
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