When Mercedes admitted going all-in on electric cars was a mistake
Published on Jun 28, 2025 at 8:26 PM (UTC+4)
by Molly Davidson
Last updated on Jun 27, 2025 at 5:13 PM (UTC+4)
Edited by
Emma Matthews
Mercedes just did a massive EV U-turn. The brand was all-in on electric cars… until now.
CEO Ola Källenius has admitted their electric vehicle strategy hasn’t gone to plan.
The goal was a full switch to all-electric by 2030, but that dream is being parked.
Internal combustion engines are staying for much longer than expected.
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Why Mercedes is keeping gas engines after its EV strategy fell flat
The Mercedes-Benz CEO has officially called time on the brand’s EV-only future, for now.
He admitted that the brand’s ambitious goal to be fully electric by 2030 missed the mark, and it’s forcing a rethink at the highest level.
That all-electric vision? It’s no longer the plan. Uneven adoption and lagging infrastructure have thrown a wrench in the works.
Instead of cutting off combustion, Mercedes will keep gas and hybrid engines in the lineup into the mid-2030s – far beyond the original sunset date.
It’s clear that innovation is being tempered by market reality, but think of it as a course correction, not a backtrack.
Luxury buyers in emerging markets aren’t switching to electric cars at the same pace as in Europe or China, and the brand is adjusting accordingly.
This new strategy means future investment will be split between electric tech and improving its existing combustion lineup – not the clean break they once promised.
What this says about the EV future for luxury carmakers
Mercedes isn’t alone in walking back bold all-electric deadlines – it’s becoming a trend across the luxury space.
Brands are starting to hedge their bets, shifting from ‘all-in’ to ‘go slow,’ as the realities of all-electric adoption set in.
Confidence in the EV market has taken a hit, thanks to charging bottlenecks, battery concerns, and pricing pushback.
Even so, the German marque is still committed to electrification – just not exclusively. Flagship models like the EQS will continue, but they’ll now sit alongside new versions of gas-powered classics.
Far from a defeat, this move suggests that the electric takeover will be a marathon, not a sprint.
Mercedes was one of the first big players to bet the house on electric. Now it’s pulling back and proving that even legacy giants sometimes have to redraw the roadmap.
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Molly Davidson is a Junior Content Writer at Supercar Blondie. Based in Melbourne, she holds a double Bachelor’s degree in Arts/Law from Swinburne University and a Master’s of Writing and Publishing from RMIT. Molly has contributed to a range of magazines and journals, developing a strong interest in lifestyle and car news content. When she’s not writing, she’s spending quality time with her rescue English staffy, Boof.
