Luxury carmaker pivots from an EV-only push to a flexible, multi-powertrain strategy with 40 model launches in 30 months.
13 Sep 2025 | 7897 Views | By Hormazd Sorabjee & Ketan Thakkar
When Mercedes-Benz says it is preparing for the biggest product rollout in its 139-year history, the announcement is not just about the number of cars hitting the road. It signals a strategic pivot. For years, the Stuttgart-based luxury carmaker was seen as one of the frontrunners in the all-electric race.
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When Mercedes-Benz says it is preparing for the biggest product rollout in its 139-year history, the announcement is not just about the number of cars hitting the road. It signals a strategic pivot. For years, the Stuttgart-based luxury carmaker was seen as one of the frontrunners in the all-electric race.
Now, however, Mercedes is recalibrating. With global demand for EVs slowing and adoption patterns diverging sharply across regions, the company is betting on a multi-powertrain strategy — blending battery-electric, plug-in hybrid, and advanced internal combustion engines. Over the next two-and-a-half years, Mercedes plans to launch more than 40 new models, the most ambitious product offensive in its history. The goal: to insulate itself from demand volatility, protect its luxury credentials, and lead in performance and efficiency, regardless of powertrain.
“We are ahead of the biggest product launch campaign we have ever had with more than 40 models in only two and a half years,” said Mathias Geisen, Member of the Board of Management of Mercedes-Benz Group AG, Marketing & Sales, at the 2025 IAA Munich Mobility Show.
From EV-Only Push to Pragmatic Flexibility
Mercedes had once pitched itself as a pioneer in accelerating towards an all-electric line-up by the 2030s. But Geisen admitted those forecasts have been recalibrated.
“When I was head of corporate strategy in 2020, we believed the ramp-up would be quicker. We believed customers would switch to electric mobility faster than it finally happened,” he said.
The company is no longer committing to hard EV penetration targets. Instead, it has designed production flexibility to match regional realities.
“It is so regionally driven… that we will no longer predict any numbers. We will make sure we have a strategy with which we can address all the different scenarios possible,” Geisen explained.
“We can handle that if we have 50% of GLCs electric. If it’s 30%, we can handle that. If it’s 70%, we can handle that as well.”
One Design Language Across Powertrains
Another significant shift is in design philosophy. Earlier EVs were styled differently to signal futurism. Going forward, EVs and ICE models will look nearly identical.
“Everything you’ll see going forward will look the same, be it combustion or electric,” Geisen said.
This unified approach ensures customers make choices based on powertrain requirements, not design compromises — reinforcing brand continuity across the portfolio.
Balanced Focus on ICE
The offensive is not a retreat from combustion engines but an upgrade.
“We have updated all of them now to EU 7. We have invented or developed a new eight-cylinder engine. We just launched a new four-cylinder engine,” Geisen said.
Diesel also remains part of the mix. “There are no plans to discontinue the diesel engines,” he confirmed, even as the fuel faces headwinds in many markets.
On the performance side, Mercedes-AMG will broaden its range. “We will also have some positions where we had a four-cylinder setup, which will also be available as a six-cylinder going forward,” Geisen revealed.
Efficiency and Performance Benchmarks
At the core of the rollout is Mercedes-Benz’s drive to lead in both efficiency and performance.
“With the CLA, we have the most efficient compact class EV. With GLC, we have the most efficient midsize SUV in the market. With AMG, we have the highest performance ever recorded in an electric vehicle,” Geisen said.
The message is clear: “Our ambition is to lead whatever we offer. In whichever segment we compete, we have to build the best vehicle.”
Mercedes-Benz’s biggest-ever launch campaign is a course correction — away from an EV-only bet to a more region-sensitive, multi-powertrain playbook. By future-proofing its ICE line-up, doubling down on EV efficiency benchmarks, and ensuring design continuity, the brand is hedging against uncertainty while reinforcing its core values of luxury, craftsmanship and performance.
For India and other emerging markets — where EV adoption is likely to remain gradual and premium ICE models continue to command strong demand — this strategy ensures Mercedes-Benz stays ahead of rivals with both scale and flexibility.