Premium automakers including Mercedes, have extended their timelines for phasing out combustion engines and will continue to develop hybrid solutions.
The recent announcement by Ola Källenius, CEO of Mercedes, came as no surprise following the collapse in sales of Mercedes electric models in 2024. A few days ago, Källenius told Auto Motor und Sport magazine that “The electrified, high-tech combustion engines will run longer than we originally expected. We have made this course correction.” Initially, Mercedes had planned to sell only electric models by 2030, where market conditions allow.
Just three days prior to Källenius’s statement, Audi CEO Gernot Döllner told the British magazine Autocar that the company had abandoned its plan to cease sales of combustion engine models by 2033. Audi had originally intended to launch its last combustion engine model in 2026 and completely stop selling it by 2033. However, Audi has changed its mind and announced that it will continue to sell combustion and hybrid models beyond 2033, without specifying a new deadline.
BMW, unlike Audi and Mercedes, which have been more successful in selling electric models, is also considering further development of hybrid-powered vehicles. In 2013, the BMW i3 was one of the first models to feature a range extender. The electric version with an 18.8 kWh battery had a real-world range of only about 150 km, while the range extender version, which used a two-cylinder motorcycle engine as a generator, had double the range at around 300 km. BMW is now considering using this system in larger models.
Sources from Germany and the UK report that BMW is working on a future BMW iX5 Rex, which could launch in 2026 based on the current model’s CLAR platform. This vehicle would use the new Electric Range Extender system developed by ZF, which combines an electric motor with an inverter, a planetary gear set, and a clutch. The technology is also compatible with the Neue Klasse platform, which means the new electric motors developed for that series could be used. The BMW iX5 Rex could achieve a massive range of up to 1,000 km, making it extremely appealing.
At the same time, Porsche CEO Oliver Blume announced that the company is evaluating the introduction of a new combustion engine SUV by the end of the decade. Although Blume did not specify the model, it’s very likely he was referring to a combustion-powered successor to the former Macan or an entirely new SUV.
Despite its exceptional quality and impressively low energy consumption, the Porsche Macan EV is not selling at the same level as its internal combustion predecessor. Blume mentioned that the new model would have to be clearly distinct from the current electric Macan, but gave no details on its size or positioning. Porsche has access to the PPC (Premium Performance Combustion) platform, developed jointly with Audi and already used in the new Audi Q5.
It also appears that Porsche is considering hybrid versions of its upcoming large SUV, codenamed K1, placed above Cayenne, which was initially planned as an electric-only model.
The decline in sales in China—one of the largest markets for premium manufacturers—is causing concern, prompting these brands to explore new solutions. A range extender system that offers much longer driving ranges could be one answer. Moreover, this technically complex solution is currently offered by very few Chinese competitors.
On the other hand, Mercedes will continue to develop electric models and hopes to see greater success with them in the future.
The Mercedes GLC EV is in its final testing phase and is built on the new MB.EA platform with 800V technology. It will debut at the Munich Motor Show on September 8, 2025, and go on sale in 2026. Also in 2026, Mercedes plans to launch an electric version of the C-Class, likely alongside the spring 2026 facelift.
Following that, an electric E-Class will also be introduced, and all future Mercedes EVs will drop the “EQ” label from their names. Despite being built on dedicated electric platforms, these models will feature designs and proportions similar to those with combustion engines.
Additionally, Mercedes is in the final stages of development and testing for the electric successor to the Mercedes-AMG GT 4-door coupe and for a standalone SUV, both of which will be based on the high-performance AMG.EA electric platform with YASA axial-flux engines.