Luxury automobile manufacturer Mercedes-Benz is getting ready to go all electric by the end of the decade, where market conditions allow.
Accordingly, the company is accelerating toward an emissions-free and software-driven future.
Under the plans, by 2022, Mercedes-Benz will have battery electric vehicles (BEV) in all segments the company serves.
Besides, from 2025 onwards, all newly launched vehicle architectures will be electric-only and customers will be able to choose an all-electric alternative for every model the company makes.
According to Mercedes-Benz, it intends to manage this accelerated transformation while sticking to its profitability targets.
"The EV shift is picking up speed -- especially in the luxury segment, where Mercedes-Benz belongs. The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade," said Ola Kallenius, CEO of Daimler AG and Mercedes-Benz AG.
"This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz."
Additionally, to facilitate this shift, Mercedes-Benz plans to significantly accelerate R&D.
In total, investments into battery electric vehicles between 2022 and 2030 will amount to over 40 billion.
In addition, Mercedes-Benz plans to set up eight Gigafactories for producing cells, together with its partners around the world.
"This is in addition to the already planned network of nine plants dedicated to building battery systems," the company said in a statement.
"Next generation batteries will be highly standardised and suitable for use in more than 90 per cent of all Mercedes-Benz cars and vans while being flexible enough to offer individual solutions to all customers."
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