Daimler’s CEO stressed the importance of low-emission technologies and innovation on Friday, telling CNBC that the auto industry was “in the midst of a transformation.”
“In addition to the things we know well – to build the world’s most sought after cars, frankly – there are two technology trends we’re doubling down: electrification and digitalization,” Ola Källenius told CNBC’s Annette Weisbach.
The firm, headquartered in Stuttgart, “poured billions into these new technologies,” he added, stating that they “would shape our path to CO2-free driving.” This decade, he claimed, would be “transformative.”
Källenius’ comments came on the same day that Daimler announced that its Mercedes-Benz Cars division had sold more than 160,000 plug-in hybrids and all-electric vehicles by 2020, a tripling compared to the previous year.
In the fourth quarter of 2020 alone, the German automotive giant said it sold approximately 87,000 xEVs – a term that refers to both plug-in hybrids and all-electric vehicles.
Daimler added that the share of xEVs at Mercedes-Benz Cars was 7.4% in 2020, down from just 2% in 2019. Looking ahead, it predicts that the share of xEVs at Mercedes-Benz Cars will grow to around 13% this year. , with several new models to be rolled out in 2021.
“We have more than tripled sales of our plug-in hybrids and all-electric cars,” Källenius said in a statement on the company’s website. “Demand for these vehicles has risen sharply, especially towards the end of the year,” he added.
New goals, symbolic shifts
The surge in electric vehicle sales for Daimler comes at a time when politicians and businesses alike are looking for low- and zero-emission transportation.
Last month, the European Commission, the executive arm of the EU, presented its strategy for sustainable and smart mobility. Among other things, it aims to have at least 30 million emission-free cars on the road by 2030.
Drivers’ habits seem to be changing. In the UK – which recently announced plans to stop selling new diesel and gasoline cars and vans by 2030 – road user demand for battery-powered electric vehicles increased by 185.9% in 2020, with 108,205 new registrations, according to the UK. Society of Motor Manufacturers and Traders.
Sales of plug-in hybrid electric vehicles reached 66,877 last year, up 91.2%, the SMMT’s figures show. The trade association said combined, battery, and plug-in hybrid electric cars “accounted for more than one in 10 registrations – up from about one in 30 in 2019.”
For the month of December, the Tesla Model 3 – an electric car – was the best-selling car in the UK
In Norway, the rise of electric vehicles has been even more pronounced than in the UK. Reuters reported Tuesday, citing the Norwegian Road Federation, that battery-electric vehicles accounted for 54.3% of all new car sales in Norway last year. This, it said, was a worldwide record.
Daimler is one of many major automotive companies looking to make great efforts in the electric vehicle industry and challenge Elon Musk’s Tesla.
For example, the Volkswagen group is investing 35 billion euros (about $ 42.86 billion) in electric vehicles and says it plans to roll out about 70 fully electric models by 2030.
Nissan also wants to expand its EV offering. In an interview with CNBC last month, Ashwani Gupta, the company’s chief operating officer, said a “turning point” had been reached when it came to the electrification of vehicles.
Gupta added that the Japanese company was “ready to tackle that possibility anywhere in the world.”