Transportation

Mercedes-Benz Walks Back EV Sales Target on Waning Demand

CEO says making EVs will be more expensive for years
Automaker is forecasting lower margins on a slowing economy

WATCH: “We want to signal to our investor that that money is available for future buybacks,” CEO Ola Källenius says.Source: Bloomberg

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By Wilfried Eckl-Dorna and Tom Mackenzie

February 22, 2024 at 6:30 AM UTC

Updated on

February 22, 2024 at 9:24 AM UTC

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Mercedes-Benz Group AG warned that electric vehicles will remain more expensive than their combustion-engine siblings for years to come as the luxury-car maker braces for cooling demand for cars with a plug.

The manufacturer on Thursday forecast lower returns in 2024, citing challenges from a slowing economy. Mercedes also pared back its outlook for EV sales, with demand mainly in the small and medium segments where it’s not as present.