Mercedes-Benz to Continue ICE Vans Alongside Electric Models Amid Slower EV Demand

Mercedes-Benz adjusts its electrification plans, retaining internal combustion engine vans alongside electric models due to slower EV demand. Learn about upcoming VAN.EA platform and market trends.

Mercedes-Benz is rethinking its approach to electrifying commercial vans. Despite previously announced plans to phase out internal combustion engines (ICEs) by 2030, the company has decided to continue offering ICE models alongside electric versions. This decision stems from slower-than-expected demand for electric vehicles, particularly in the European market, and the need to meet diverse customer demands worldwide.

This strategic shift doesn’t mean stepping back from innovation. In 2023, Mercedes-Benz introduced updated versions of its popular V-Class and Vito vans, available with both ICE and electric powertrains. For instance, the V-Class V220 d is equipped with a 2.0-liter diesel engine producing 163 horsepower and features a modern interior with the MBUX multimedia system. The Vito vans, known for their flexible configurations, offer front- and rear-wheel-drive options and different payload capacities, making them especially popular among businesses.

However, the most significant step in the long term will be the launch of the VAN.EA platform in 2026. Designed exclusively for electric vans, this platform will help streamline production by reducing model diversity by more than 50%. Nonetheless, the full transition to electrification is being postponed: the European market is showing slower growth than expected. In 2024, electric vans accounted for 6.1% of new registrations, down from 7.2% the previous year.

Meanwhile, competition is intensifying. Flexis—a joint venture between Renault, Volvo Group, and CMA CGM—has already secured orders for 15,000 electric vans from leading European transportation companies. This indicates that despite temporary slowdowns, demand for eco-friendly commercial vehicles is steadily growing, especially as environmental regulations become more stringent.

Ultimately, Mercedes-Benz is betting on a hybrid approach: combining ICEs and electric motors in the short term will help maintain competitiveness, while the future VAN.EA platform will enable a smooth transition to fully electric models. This balance between traditional and innovative technologies is likely to be the key to success in the commercial transportation market in the coming years.

Sourse: greencarreports.com