Mercedes-Benz is set to offer electric versions of all its cars by 2022.
Dieter Zetsche, chief executive of Mercedes-Benz owner Daimler, told investors that the company will sell at least 50 electric versions of Mercedes-Benz passenger cars to customers, Reuters reported.
The models will be both hybrid and full-electric versions of the cars. However, electric cars are relatively low margin, so Daimler is giving itself more ambitious savings targets to push through the changes, and is now aiming for $4.8bn in savings by 2025.
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Speaking to investors at an event in Sindelfingen, Germany, Frank Lindenberg, vice president of finance and controlling, said: "In the beginning of the cycle we believe that we will have to face a significantly lower margin.
"For some vehicles half of the margin of the vehicles they replace."
Daimler is forecasting that the purchasing costs for electric cars will be equal to those for combustion vehicles by 2025. Mercedes-Benz's Smart brand of cars will no long offer combustible engine versions from 2020 onwards.