European Union’s EV dreams: Will they become reality?

Despite the end of incentives in the EU, concerns persist about the adequacy of charging infrastructure for electric vehicles (EVs). Toyota’s continued focus on hybrid models, coupled with VW and Audi’s reported plant closures, and the flurry of EV announcements from European manufacturers, have raised questions about the region’s commitment to EV production.

Türkiye Today recently interviewed the head of Mercedes-Benz to address these concerns. Here’s what they had to say.

Despite variations in domestic market dynamics across European countries, EV users face common challenges: inadequate charging infrastructure and limited vehicle range.

“Another notable trend is the withdrawal of government incentives for EVs in many European countries. This shift follows the aggressive pricing strategies adopted by Chinese EV manufacturers, prompting European automakers to explore alternative approaches.”

The frequent announcements of new battery-powered vehicle plans have led to misunderstandings in the media. Toyota’s staunch commitment to hybrid technology has contributed to speculation about German brands potentially abandoning electric production. Allegations of factory closures by VW and Audi have further intensified the debate, placing these companies, which are considered the backbone of Europe’s automotive industry, at the center of attention.

‘Consumers think price-oriented’

Answering our questions at the press launch organized in Cappadocia for the two new models they introduced to the Turkish market, Sukru Bekdikhan, CEO of Mercedes-Benz Otomotiv, pointed out that every brand has its own plan and said; “We have very serious investments in this area and we continue to put new investment plans into operation.”

Adding that the situation has changed in the eyes of the consumer, especially with the recent rollback of the incentives provided in Europe, Bekdikhan told Türkiye Today: “The first thing consumers consider is whether the price of the electric vehicle is significantly higher than gasoline or diesel vehicles. If the price gap is large, they hesitate, especially if they don’t drive much daily and don’t need the fuel savings. In such cases, they tend to avoid electric vehicles for now.”

‘Process may take longer but there is no turning back’

Stating that the withdrawal or decrease in the incentives provided for electricity has pushed many manufacturers to search for a new strategy, Bekdikhan said; “The cost of producing electric vehicles remains higher than that of gasoline and diesel vehicles. To make these more expensive products competitive, government incentives continue to be essential.

When asked about potential solutions, we recognized that market adaptation will take some time. If incentives were maintained, a rapid transition to electric vehicles across all European markets would be feasible. However, this scenario currently seems unlikely.”

Sukru Bekdikhan expressed concern that the current situation is hindering industrial transformation and adaptation. However, he emphasized that this does not imply a abandonment of electric vehicles. He highlighted the inevitability of fossil fuel depletion and the urgent need to address environmental challenges. Bekdikhan emphasized the crucial role of electric vehicles in reducing global temperatures.

‘Our goal is to electrify all our models in 5 years’ 

Stating that the transition process may vary from brand to brand and according to vehicle classes, Bekdikhan said: “As Mercedes-Benz, our goal is to switch to electric vehicles in all possible models by 2030. We will create our product portfolio accordingly. In other words, every customer will find an electric alternative in every segment and the choice will be entirely theirs. We don’t want to force our customers into a certain area; instead, we will offer both internal combustion and electric versions in all our models. We will leave the decision to them.”

EVs account for 17% of Mercedes-Benz sales in Türkiye

Bekdikhan revealed that electric models account for 17% of Mercedes-Benz sales in the Turkish market based on 2024 data. He added, “We recently launched the electric version of our iconic G Series, and it’s already generating significant customer interest.”

Bekdikhan projected that electric sales will comprise around 25% of total sales next year and reach 50% by 2030 in Türkiye. He acknowledged the variability of market conditions across regions like China, Europe, and America, making global predictions challenging. However, Bekdikhan reaffirmed Mercedes-Benz’s commitment to its roadmap, emphasizing the company’s dedication to offering electric options in every segment and ensuring adequate production, service, and spare parts capacity to meet growing demand.