Mercedes-Benz boosts EV race with $47bn investment for industry shift

By Arya M Nair, Intern Reporter
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Mercedes Benz
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Mercedes-Benz, Germany’s Daimler-owned luxury car aims to invest more than $47 billion by 2030 to compete with Tesla in the all-electric car market but has warned that the shift in technology may result in joblessness.

As part of this historic industry shift Mercedes plans to launch three new all-electric car platforms in 2025 and to build eight battery plants with partners, according to a strategy update released last day. Mercedes is betting the luxury segment will shift faster towards battery cars than the mass market because of customers’ greater purchasing power.

Ola Källenius
Ola Källenius
CEO – Mercedes Benz

“We really want to go for it and be dominantly, if not all-electric, by the end of the decade. We need to move the debate away from when you build the last combustion engine because it’s not relevant. The question is how quickly can you scale up to being close to 100 percent electric and that’s what we’re focusing on.”

After years of criticism for being late to adopt entirely battery-powered automobiles, the German automaker stepped up its game with the unveiling of the EQS, the electric version of its bestselling E-Class sedan, earlier this year. Analysts and car reviewers praised the sedan for combining upscale appeal with a competitive battery range that rivals Tesla models.

Daimler shares rose to 2.5 percent after the news that came just over a week after the European Union suggested an effective ban on the sale of new petrol and diesel cars from 2035 as part of a broad package of climate-change policies. By 2039, it aims to turn its new-car fleet carbon-neutral.

The company is splitting the businesses because it believes they will take different electrification paths, with passenger cars moving toward battery power and hydrogen fuel cells likely playing a greater role in commercial vehicles.

Daimler stated that it would develop a battery recycling plant in Kuppenheim, Germany, as part of its electrification strategy, with operations set to begin in 2023.

Related: Mercedes-Benz gives a sneak peak into its sleek new electric van

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