Daimler: all-electric vehicles to account for 15-25% of total unit sales by 2025

In line with CASE strategy, advancing levels 4/5 automated driving and mobility services

2018/01/30

Summary
Daimler to introduce more than ten new all-electric vehicles by 2022
Daimler aims to achieve levels 4/5 automated driving in the early-2020s
Investment in numerous companies to expand mobility services
Mercedes-Benz to launch new A-Class and G-Class in 2018
China: Mercedes-Benz has localized 68.8% of its vehicle production
Mercedes-Benz Cars' unit sales and business results
Sales Forecast by LMC Automotive: Daimler Group's sales to grow to 3 million units in 2021

Summary

Record unit sales in 2017

Mercedes-Benz Cars, Daimler's passenger car division, achieved record sales of 2.42 million units in 2017, up 8.8% year-over-year (y/y). This was the seventh consecutive record year for the company. The car division's growth was driven by its new E-Class and the SUV models. As a result of record sales in three core regions of Europe, Asia-Pacific and NAFTA, Mercedes-Benz was the best-selling premium brand for the second consecutive year.

Revenue and EBIT for January-September 2017 grew significantly

Mercedes-Benz Cars' revenue for the period January-September 2017 increased by 6.7% y/y to EUR 69.7 billion and EBIT (earnings before interest and taxes) grew by 22.2% to EUR 6.8 billion. As of October 2017, the company expected its EBIT for 2017 to increase significantly from the previous year.

Daimler's CASE Strategy

In October 2016, Daimler announced its CASE Strategy, Mercedes-Benz Cars' new strategy for the 2020s. As a company to offer future mobility solutions, Daimler aims to take the lead in the four fields of the strategy: Connected, Autonomous, Share & Services and Electric. In 2018, based on the success of its core business of automotive production and sales, Daimler will continue to invest in the four fields and implement its CASE strategy.

Plans to introduce more than 10 new all-electric vehicles by 2022

According to its powertrain strategy announced in October 2017, Daimler is continuing to develop three powertrains for electric vehicles (EV), plug-in hybrid vehicles (PHV), and internal combustion engine (ICE)-powered vehicles. Regarding EVs, the automaker will bring more than 10 new all-electric vehicles to market by 2022. Under its new EQ sub-brand for EVs, the EQC, the first series production model, will begin production starting in 2019. Daimler expects that EVs will account for 15-25% of its total sales by 2025.

Concept EQA: Compact EV concept
(CES 2018)

Daimler and Bosch partner to develop autonomous driving technologies

The new Mercedes-Benz E-Class Coupe and the face-lifted S-Class released in 2017 are capable of highly advanced Level 2 autonomous driving. In April 2017, Daimler and Bosch, a leading supplier, agreed to partner to develop Levels 4/5 (highly/fully) autonomous driving technologies. Daimler aims to achieve Levels 4/5 automated driving on urban roads by the early-2020s.

Expansion of mobility services

Daimler has been expanding its Shared & Services mobility services business through its subsidiaries including car2go (car sharing) and mytaxi (ride hailing). In 2017, Daimler also invested in a number of new companies and by the end of the year was offering mobility services such as car and ride sharing in more than 100 cities in Europe, North America, and China.

In October 2017, Daimler announced plans to enhance the effectiveness of its group by restructuring to make the Mercedes-Benz Cars and Vans as well as Daimler Truck and Bus businesses independent, in addition to its existing independent financial services business unit. The spin offs are expected to be approved at the general shareholders meeting as early as in 2019.

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