Mercedes-Benz will be ready to become a fully-electric car brand by the end of the decade, following a ramp-up in development of zero-emission vehicles.
The German car maker says it will offer electric models in all segments by next year and, from 2025, it will only launch electric platforms.
Existing models may continue beyond 2030, with petrol or diesel engines, in certain markets.
“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 Källenius, 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. Thanks to our highly qualified and motivated workforce, I am convinced that we will be successful in this exciting new era.”
To facilitate this shift, Mercedes-Benz says investments into battery electric vehicles between 2022 and 2030 will amount to more than €40 billion (£34bn).
The brand will base its future products on three platforms. The MB.EA will cover all medium to large cars, while performance models will use the AMG.EA. A third VAN.EA platform will be used for light commercials.
Mercedes-Benz says it will need a battery capacity of more than 200 Gigawatt hours and 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.
To showcase what’s possible, the car maker is developing the Vision EQXX: an electric car with a real world range of more than 600 miles.