The CEO of Mercedes-Benz, Ola Kaellenius, stated that the variable costs for producing electric vehicles will remain higher than those for combustion engine models for the foreseeable future. This, in turn, will continue to drive intense competition in the electric vehicle market. Kaellenius made these comments while revealing more details about the upcoming CLA compact electric sedan, which aims to offer 30% to 35% more driving range.
The higher variable costs for EV production are attributed to factors such as raw materials for batteries, software development, and electricity prices. Mercedes-Benz is working towards optimizing fixed costs and resource allocation to achieve the same profitability with electric cars as with combustion engines. The CLA will have a power use of 12 kilowatt hours per 100 kilometers and a driving range of 750 km. It is expected to reduce costs by approximately 50% compared to its previous generation. The batteries for the CLA will be supplied by CATL and ACC, of which Mercedes owns a third. The CLA will be available in hybrid and all-electric versions, with no diesel versions planned.