Mercedes-Benz, the luxury car manufacturer, plans to focus on electric vehicles (EVs) in the coming years, as it considers them technically superior to combustion engines, even when fueled by e-fuels. The company’s CEO, Ola Kallenius, recently stated that the electric car has great potential for progress, and that the electric drive will surpass the internal combustion engine in terms of performance before the end of the decade.

While Mercedes will continue to sell cars powered by combustion engines, the focus will be on developing more efficient and eco-friendly electric vehicles. The company aims to reach CO2 neutrality in balance sheet terms by 2039 and to achieve this goal, it will develop electric-only vehicle architectures that can be adapted to accommodate combustion engines when it makes business sense.

Mercedes will continue to make internal combustion engines more efficient and meet the new Euro 7 emissions standards, but investments in ICEs will be reduced by as much as 80% compared to today. In China, combustion engines will be available but only as plug-in hybrids developed in partnership with local partners from Geely.

Despite the shift to electric energy, Mercedes does not intend to change its positioning in the market. The company will focus on the high-end market but will also offer its customers entry-level luxury cars. Kallenius also explained that the new technology developed for luxury models to ensure ecological sustainability will be used in other cars in the future.