- Mercedes-Benz was one of many automakers last year to abandon plans to go all-electric by 2030.
- Amid slower EV growth and problems staying competitive in China, Mercedes is renewing its focus on more internal combustion-powered cars.
- However, it does have several new EV models planned, including an electric E-Class and C-Class.
Suffice it to say that the last few years have been tough for Mercedes-Benz. Sales have been plunging in China and a lofty plan to go all-electric by 2030 stalled amid a tepid response to the designs of its EQ cars. Now, Mercedes is working on a turnaround plan, and it’s trying to do a lot at once: cut costs, invest in nascent technology like AI, focus more on “combustion” models and hybrids, and still bring new EVs to market as well.
That plan includes “dozens of new or refreshed models” to launch in the next two years, the German automaker announced at its annual Capital Market Day presentation. On the all-electric side, that push includes a new E-Class sedan, C-Class sedan and GLC-Class crossover—bringing battery power to some of its most popular and important models. Mercedes calls this plan “the most intense product launch program in its history,” with 19 new combustion engine models and 17 battery-electric cars out by the end of 2027.
All of these cars will lean big into new technologies, including steer-by-wire, where a car’s steering system is controlled entirely electronically without a mechanical link to the wheels. Several automakers have experimented with this over the years, but now the Tesla Cybertruck is sold without a steering column at all, which allows for reduced costs and better packaging options.
Photo by: Mercedes-Benz
Mercedes-Benz Capital Market Day
“All of them come with a fully integrated tech stack and leverage the latest developments in AI,” said Mercedes’ CTO Markus Schaefer, in a statement. “They will be packed with advanced technologies like the latest [automated driving assistance] systems and innovative tech features like a new steer-by-wire system.”
Photo by: InsideEVs
The kickoff for all of this will be the new Mercedes CLA-Class, debuting as a sedan and offering an all-electric or hybrid powertrain and potentially groundbreaking efficiency. It also debuts MB.OS, Mercedes’ new in-house operating system, and promises to be a truly software-defined vehicle like a Tesla or a Rivian—linked to devices like your smartphone and upgradeable over time with wireless updates. The CLA will use Mercedes’ new MMA platform, flexibly designed to accommodate electric power or electrified combustion engines. It will debut later this year.
That launch will be followed by the electric GLC, which Mercedes calls “a turning point in our midsize segment… this is the all-electric SUV our customers have been waiting for.” Though Mercedes doesn’t mention it specifcially, a new electric S-Class is planned as well, presumably around or after that model’s “major upgrade” in 2026.
Photo by: Mercedes-Benz
Mercedes CLA MMA Platform
Mercedes offered no details about the new electric E-Class or other models at its presentation. However, executives repeated what they have in the past: new Mercedes electric models won’t have their own unique design language or model designations, and all cars will have a more “conventional” look moving forward. In other words, more electric G-Class and less Mercedes EQS—the soap-bar-like looks of the EQ cars didn’t go over well with many buyers.
Mercedes executives also said they plan to double down on the more “specialized” divisions that are seeing growth, like AMG performance cars, the ultra-luxury Maybach brand and the growing G-Class family of off-road SUVs.
Still, Mercedes has a tough road ahead, and its challenges are indicative of the headaches facing the entire auto industry in the 2020s.
The company made a big bet on an all-electric future but saw far less growth than anticipated (and in Mercedes’ specific case, it was one of the few automakers to see negative EV growth in 2024.) It’s seeing big losses in China, its most important market and a vital profit center, as well as tariff uncertainties in the U.S. Meanwhile, it needs to invest in future EVs, add to its hybrid lineup, keep developing the combustion engines customers want and cut costs amid tough economic conditions.
The Stuttgart-based automaker warned that sales are expected to be lower in 2025 with lower earnings than last year as well. Reuters today called the guidance “a bleak outlook” amid a difficult time with the industry’s electric transition, China and now a U.S. market where the rules could change as well.
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