A marathon, not sprint: Mercedes-Benz CEO outlines challenges in shift to EVs

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A Mercedes-Benz EQA photographed successful Berlin connected Jan. 20, 2021.

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The displacement to zero-emission mobility should beryllium viewed arsenic a marathon not a sprint, according to the CEO of Germany's Mercedes-Benz.

Speaking to "Squawk Box Europe," Ola Kallenius sought to item the immense situation facing the automotive manufacture successful the years up arsenic it shifts its absorption toward electrical vehicles (ESs).

"I deliberation we person to recognize that the modulation to zero-emission driving is truly a marathon, and I judge we're possibly connected kilometer 8 oregon kilometer 9 connected that travel close now," helium told CNBC's Annette Weisbach Thursday. "So it's not thing that we should look astatine arsenic a sprint. The strategical absorption is wide — we're investing into the future, we're going to spell zero-emission."

Kallenius said Mercedes-Benz's EVs had received a "good reception" truthful far. The automaker's EV models see the EQA, EQB and the EQE SUV. 

His comments came arsenic the Mercedes-Benz Group reported net for the 2nd 4th this week. Earnings earlier involvement and taxes roseate 8% to deed 5 cardinal euros, oregon astir $5.48 billion.

When it comes to EVs, its artillery electrical conveyance income reached 61,211 compared to 31,259 successful the 2nd 4th of 2022. Plug-in hybrid income for the 2nd 4th came successful astatine 34,699, a flimsy summation connected the 32,335 sold successful the aforesaid play past year.

"We person a full big of our, truthful to speak, archetypal procreation electrical vehicles connected the marketplace now," Kallenius told CNBC Thursday. "And there, we're gaining momentum."

The concern was also, helium explained, "investing successful caller architectures" that would look toward the mediate of the 2020s and "define our electrical play for the 2nd fractional of this decade."

"So we are bullish connected electrical vehicles and zero emanation driving and we're putting billions into it," helium added.

However, Kallenius did accent the value of maintaining what helium called tactical flexibility erstwhile it comes to balancing EVs with accepted autos. "In this case, our accumulation web is flexible to nutrient some high-tech electrified combustion engines and electrical vehicles," helium added.

Read much astir electrical vehicles from CNBC Pro

The Mercedes chief's comments travel arsenic large economies astir the satellite formulate plans to determination distant from vehicles that usage fossil fuels successful favour of electrical cars.

With the bulk of cars connected the roadworthy inactive utilizing diesel oregon gasoline, immoderate displacement to low- and zero-emission mobility represents a monolithic task for lawmakers and businesses.

Despite this, immoderate parts of the satellite are already seeing important changes.

In the U.K., for instance, the Society of Motor Manufacturers and Traders said Thursday that electrified conveyance accumulation — which includes hybrid electric, plug-in hybrid and artillery electrical cars — reached 170,231 betwixt January and June 2023, a grounds for the archetypal fractional of a year.

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