Mercedes-Benz: Sales increased, CO2 targets achieved - thanks to PHEV

Mercedes-Benz describes its 2020 annual balance as a "significant progress." The key driver for this enthusiasm is the increase in xEV deliveries. According to the corporation, more than 160,000 plug-in hybrids and fully electric vehicles were sold worldwide, with approximately 87,000 of those sales occurring in the last quarter alone. This boosted the sales share from 2% in 2019 to 7.4% in 2020. The manufacturer now prides itself on achieving climate targets, with an optimistic forecast:

"We were able to more than triple the sales of our plug-in hybrids and fully electric vehicles. The demand for our xEVs increased significantly, especially towards the end of the year. Our internal forecasts for 2020 indicate that we met the European CO2 targets for passenger cars last year. We are pushing forward with our 'Electric First' strategy and further expanding our electric model campaign. Based on current data, we expect to meet the CO2 targets in Europe for 2021 as well,” stated Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.

Stable numbers and optimistic forecasts

Mercedes-Benz plans to further advance electrification in 2021. Four new models are to be introduced this year: EQA, EQB, EQE, and EQS - extensions of the plug-in hybrids and electrified versions of the C- and S-Class. The company hopes this will increase the share of the xEV sector to about 13%.

The pandemic year of 2020 brought Mercedes-Benz stable figures in the passenger car segment as well. According to the corporation, they delivered more than two million vehicles for the fifth consecutive year, a total of 2,164,187 units. Nevertheless, the sales numbers decreased by 7.5%. The Smart brand, in particular, reported losses: Over 38,000 models were delivered, a decline of 67.1%. Germany remains the largest market for the compact car, with sales of the electric variant doubling to 104.9%, driven by the innovation premium.

Significant growth in the Chinese market

Mercedes-Benz Vans also saw a decline in sales. In total, 2020 saw the sale of 325,71 Sprinter, Vito, Vito Tourer, and Citan vehicles, a decrease of 8.9% compared to the previous year. Overall, sales faltered in the European region, with passenger car sales down 16.4%, followed closely by North America. Here, the total decline was 14.7%. The winner was the Chinese market, where Mercedes-Benz sales increased by 11.7% in 2020.

What does this mean?

It's hardly surprising that hybrids and fully electric variants are increasingly gaining ground. Nor is it surprising that China has the largest sales growth. Overall, the Asian region saw a 4.7% increase, with the Chinese share being substantial. The only question remains whether the CO2 target figures will have as much impact on the environment as they do on the corporation's year-end report.