German legacy automaker Mercedes-Benz plans to launch 25 new or revamped vehicles with affordable price tags in 2024 as it seeks to expand its market reach, BNN Breaking reports.
Mercedes-Benz to balance luxury with affordability
Mercedes-Benz plans to roll out 25 new or updated offerings to its dealerships throughout this year, focusing on cheaper vehicle models.
In that sense, these planned vehicles will be the automaker’s major sales drivers this year instead of more expensive battery-powered electric vehicles.
The move is apparently Mercedes-Benz’s response to the declining economic landscape and rapidly evolving dealership demands.
Customers seem to prefer alternatives to all-electric vehicles partly due to their high prices and other concerns such as lack of charging infrastructures and limited range.
Product portfolio expansion
Mercedes’ updated sales strategy will enable it to execute a diverse powertrain strategy that offers internal combustion engine-powered (ICE), hybrid (HEV), and battery-electric vehicle (BEV) models.
It reflects the recent move by American legacy brand General Motors, which scaled back from its intensified electrification push to bring back its hybrid offerings.
According to the report, Mercedes will cancel its electric vehicle strategy in the US market and shift its focus to ICE and HEV models.
All that said, it seems that customers are not yet ready to fully shift to electric vehicles, prompting automakers to consider what they actually prefer to buy.
“Mercedes is keeping touch with reality instead of trying to alter it. “The past year has shown that you can only fly so high before you become out of touch. Entry-level vehicles allow consumers to get a taste of what is to come – if they can afford to stay within the brand’s family.”
Edmunds Insights Director Ivan Drury
It will be interesting to see which automaker in the US will be the next to shift electrification strategy amid the current market situation, including high inflation and interest rates. These recent moves by major players highlight the need for the electric vehicle industry to continue to strive to make battery-powered models more affordable for most prospective buyers.
Despite Mercedes’ major strategy shift, it remains committed to gradually shifting to all-electrics with a new $4.7 billion debt deal to establish four new EV gigafactories in the European Union in the following years.
