German luxury carmaker Daimler said Thursday it was investing 40 billion euros (approx. $60 billion CAD) in a full shift to electric Mercedes-Benz vehicles by the end of the decade.
"Mercedes-Benz will be ready to go all-electric within this decade," the firm said in a presentation, although it did add the caveat "where conditions allow".
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The carmaker unveiled an ambitious strategy that would have an electric version of all models by 2025 and a pledge that all new car platforms would be electric-only from that date.
To enable its shift to electric vehicles Daimler said it plans to open eight battery production facilities and planned to use a common battery platform across more than 90 percent of future vehicles.
"The EV shift is picking up speed, especially in the luxury segment, where Mercedes-Benz belongs," Daimler CEO Ola Kallenius said in a statement. "Our main duty in this transformation is to convince customers to make the switch with compelling products."
The company said it is aiming to boost efficiency across the board with the goal of providing a real driving range of over 1,000 km on a single charge.
A growing number of carmakers have unveiled plans to shift to electric vehicles, making it likely that the days of the internal combustion engine are numbered.
The EU signalled last week that it wants a ban on new petrol and diesel vehicles by 2035 to meet its target of reaching carbon neutrality by mid-century.