Mercedes-Benz CEO Ola Källenius announced a shift in the company's electrification strategy, extending the production of combustion-engine vehicles well into the 2030s alongside electric models. The decision follows lower-than-expected demand for its premium electric vehicles, impacting profit margins. Market dynamics, including reduced EV incentives and infrastructural gaps, have influenced consumer choices. The move contrasts with the earlier plan to focus on high-end electric car sales, reflecting a pragmatic response to market conditions and profitability concerns. Mercedes aims to strengthen its position in the luxury sector while navigating the evolving EV landscape.