Overview

• Källenius, who also leads the European Automobile Manufacturers’ Association, said Europe needs a reality check to avoid heading “full speed against a wall.”
• He urged Brussels to adopt technology-neutral measures such as tax incentives and lower charging costs to encourage EV adoption without destabilising markets.
• The EU’s 2035 combustion-engine sales ban will be reviewed in the second half of 2025, offering a chance to adjust compliance schedules.
• Mercedes has deferred its original 2025 all-electric architecture plan by five years and intends to continue offering combustion-engine models.
• In Q2 2025, electrified vehicles made up just 20.7% of Mercedes’ unit sales, reflecting weaker consumer uptake and pressure from Chinese competitors.