Combustion Engines Will Remain for Another 10–15 Years, Says Mercedes Chairman

Internal combustion engines will remain in use globally for at least another decade and probably longer, Mercedes-Benz Chairman Ola Källenius said, as differences in the pace of electrification require manufacturers to retain powertrain choice.

“The combustion engine, it will be around for minimum 10, probably 15 years more,” Källenius said at a media roundtable in Pune.

His assessment concerned the wider transition to electric mobility. Mercedes-Benz, he said, would continue serving customers seeking electrified combustion vehicles while expanding its electric range.

Källenius described the industrial transformation as a process lasting 20–25 years, reflecting the different speeds at which markets are changing. 

“If you’re an incumbent, you don’t cut off the leg that you stand on right now and you build a new one,” he said.

Mercedes-Benz has updated its combustion portfolio to Euro 7 requirements, Källenius said, with investment extending to a new V8 engine.

Diesel remains part of that strategy. Asked specifically about its future, he said the company had examined the technology carefully and prepared its engines for the European emission standard.

“Our portfolio of diesel engines is ready for the future,” he said.

Källenius identified light commercial vehicles as an important application, alongside larger passenger vehicles used by customers with high annual mileage.

For drivers covering 60,000–70,000 kilometres a year, whether for business travel or other transport requirements, diesel remained a strong option.

“It will stay in the portfolio for the foreseeable future,” he said.

During the discussion, Mercedes-Benz India managing director and CEO Santosh Iyer pointed to diesel’s lower pump price in India. Källenius said that further strengthened the case for customers whose driving requirements suited the technology.

The continued investment in combustion engines accompanies the rollout of Mercedes-Benz’s second generation of electric vehicles, including the new electric GLC launched in Pune.

Källenius said the company would offer an electric alternative across every meaningful model position by the end of the decade. He expects EVs to account for a substantially larger share of its Indian sales next year, supported by better products and improving charging infrastructure.

Zero-emission mobility remained the destination, he said. But complete electrification across all markets was still many years away.

Until then, Mercedes-Benz intends to serve both customers ready to switch to electric vehicles and those who continue to need combustion powertrains.

“As long as there’s meaningful demand for… high-tech, in our case electrified ICE, we have that as well,” Källenius said.