Mercedes-Benz to go back to ICE vehicles, amidst slow EV sales

Mercedes-Benz margins are said to have tanked by 9% in the first quarter.

According to media reports, Mercedes-Benz is said to be retreating to ICE vehicles for the foreseeable future. The move comes amidst the weakening sales of electric vehicles.

The German luxury carmaker had previously announced its ambitious plans to become an EV-only brand at the end of the decade. However, company CEO Ola Kallenius has now confirmed that Mercedes-Benz will continue to make ICE and hybrid vehicles "well into the 2030".

The carmaker received disappointing order numbers for its premium EV models such as the EQS and EQE, which were key parts of the brand's plan to boost profit and top-end sales. Mercedes-Benz margins are said to have tanked by 9% in the first quarter - the lowest in more than 2 years. Mercedes' goal was to increase sales of its most expensive offerings by as much as 60% by 2026. These include its AMG models, Maybach models, G-Wagon and EQS. However, the carmaker has warned that the margins could fall further this year.

During the Beijing Motor Show, Mercedes and BMW managers stated that 90% of both brand's top-end models - S-Class and 7 Series, are ordered with combustion engines in China.

Source: EconomicTimes

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