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OXFORD: Following the purchase of Oxford, UK-based electric motor manufacturer YASA, Mercedes-Benz says it will only produce electric-powered vehicles from 2025 as investments into combustion engines and plug-in hybrid technologies will have dropped nearly 80 percent by then.

The company says it will invest €40 billion in EV engine development between 2022 and 2030 for three platforms: MB.EA to cover all medium to large size passenger cars; AMG.EA dedicated to performance vehicles; and VAN.EA for purpose -built electric vans and light commercial vehicles.

With YASA, Mercedes gains access to unique axial flux motor technology and expertise to develop next generation ultra-high performance motors. Philipp Schiemer, CEO of Mercedes-AMG commented: “YASA’s impressive axial-flux technology allows future fully electric Mercedes-AMG performance cars to stay a step ahead of the competition.”

China, the world's largest new energy vehicle (NEV) market and home to hundreds of companies and suppliers specialising in EV components and software technologies, is expected to play a strategic role in the manufacturer’s new electrification strategy.

"The EV shift is picking up speed. The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade," said Ola Källenius, CEO of Daimler and Mercedes-Benz.

After launching its EQS flagship vehicle this year, Mercedes is developing a ‘Vision EQXX’ electric car with a range of over 600 miles for a launch in 2022 as a prelude to Shell providing its customers with over 30,000 more charging points in China, Europe and North America by 2025.

All passenger car and battery assembly sites run by Mercedes will switch to carbon neutral production by 2022 and the company plans to open a new recycling factory in Kuppenheim, Germany in 2023 to develop and secure capacity and know-how.

"Our main duty in this transformation is to convince customers to make the switch with compelling products. For Mercedes-Benz, the trailblazing EQS flagship is only the beginning of this new era," added Källenius.

A May 2021 survey of New Electric Vehicles in 53 cities across China by J.D. Power suggested the market is “heating up” as new brand models accounted for nearly 40 percent of total NEV sales of over one million in the first six months of 2021, according to the China Passenger Car Association.

“The competition intensifies as more and more automotive brands join the NEV race,” commented Jeff Cai, general manager of auto product practice at J.D. Power China. “Automotive brands have put more resources into fields such as intelligent and battery technologies in which they have already gained differentiation and first-mover advantages. While introducing advanced technologies into vehicles, they also focus on avoiding quality problems, therefore grasping the opportunity to win the new race.”
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