Mercedes’ EV Push In America Has Nothing To Do With What American Buyers Want

Mercedes-Benz is not stepping back from electric vehicles, despite competitors scaling back amid slower adoption rates. The news comes as US demand for EVs cools following the rollback of federal tax credits.

Instead, during the next three years, Mercedes will introduce a number of new electric models to the United States, including three AMG performance EVs and battery-powered versions of popular models such as the GLC crossover, E-Class and the C-Class sedan that was previewed today.

The Global Need To Go Electric

The update to Mercedes’ plans came from Adam Chamberlain, the CEO of Mercedes-Benz USA, speaking to AutoNews, who explained the company’s position. Mercedes is sticking to its EV plans due to the requirement from global markets, said Chamberlain. Strict international regulations, especially in China and Europe, mean that for a brand selling worldwide, it is impossible to turn its back on EVs.

Also: Mercedes Heard ‘Too Many Screens’ And Built A New C-Class EV That’s One Giant Screen

However, unlike other manufacturers, they won’t be pushing electrification on consumers, hoping they’ll switch. Instead, Mercedes has moved to flexible vehicle platforms. Rather than their initial approach of offering a separate line of EVs, Merc’s current plan is to design cars compatible with gasoline engines, hybrids, or full battery-electric power.

American Demand For EVs Remains

Mercedes predicts pockets of demand among US consumers for EVs in the foreseeable future, despite the loss of federal incentives. While the company predicts EVs to constitute approximately 5 percent of its retail sales in the U.S. this year, that’s partly down to limited production and strong demand from Europe and China.

On the national scale, approximately 14 percent of consumers indicate that they would give serious consideration to an EV next time. In California, it grows to 28 percent. So, there is demand, but it is unevenly distributed. In fact, according to the report, Mercedes US have only been able to allocate around 200 electric CLA’s for customers, all units of which have been spoken for.

Read: Mercedes’ Future EVs May Be More Chinese Than You Think

Chamberlain thinks the U.S. EV sales would rise to 10 to 15 percent in the year 2021, with the supply increasing and more mainstream electric models coming into the market, such as battery versions of the GLC and C-Class. Nevertheless, profitability is still its focus. He made sure it was evident that Mercedes is not going to produce tens of thousands of vehicles without confirmed demand in its bid to achieve market share.