Mercedes-Benz has decided to alter its future plans regarding electric vehicles (EVs) as consumer demand for EVs remains lower than expected. The German automaker is scrapping its initial goal of only selling electric vehicles after 2030. This decision marks a significant change from its previous pledge made three years ago to phase out gas-powered vehicles entirely by 2030 and transition to selling only EVs.

In its fourth quarter earnings statement, Mercedes-Benz stated that "customers and market conditions will set the pace of the transformation." The company now aims to cater to various customer needs, offering both all-electric drivetrains and electrified combustion engines until well into the 2030s. The report indicates that Mercedes-Benz expects EV sales to constitute "up to 50%" of their total sales by that time.

Acknowledging the slow pace of EV adoption, Tesla CEO Elon Musk mentioned that Tesla anticipates a decrease in sales numbers in the upcoming year. This shift in perspective from Mercedes-Benz comes amid reports that the Biden administration is easing its push for EVs as consumer demand for such vehicles remains low. Dealerships have expressed concerns, and automakers have had to readjust production due to reduced demand for electric cars.

Furthermore, Ford recently announced significant cuts to the workforce at its Rouge Electric Vehicle Center, reducing around 1,400 positions responsible for producing the F-150 Lightning truck. This decision was made in response to the tepid customer demand for the vehicle. The automaker's move reflects the challenges posed by lower-than-expected consumer interest in electric vehicles within the automotive industry.

The adjustments made by Mercedes-Benz and Ford highlight the complex landscape of transitioning to EVs amidst consumer preferences and market conditions that are shaping the future of the automotive industry.