Mercedes-Benz has reported a reduction in emissions in its 2025 Sustainability Update, with the company saying its new all-electric CLA model would contribute to its environmental targets.
The company has seen a 75% drop in its production carbon emissions since 2018, as of 2024. The electric CLA model will be produced at a plant wholly supplied by renewable electricity.
The CLA is “the most efficient Mercedes‑Benz ever built and sets new standards in terms of charging speed,” said Mercedes-Benz board of management chair Ola Källenius. “At the same time, it demonstrates our progress in decarbonising our value chain and closing the loop."
“Increasing energy efficiency and expanding the share of renewable energy we use in production make sense not just from an ecological standpoint, but also from a business perspective. During 2024, we achieved savings of more than 300 GWh for the second year running and we are well on track to reduce the energy, water and waste part in production costs by a further 25 percent by 2030,” said board member Jörg Burzer.
Both all-electric and hybrid versions of the CLA will be available by the end of 2025, the company has said. The CLA can add 325 kilometres of range within ten minutes of charging.
The electric CLA model’s carbon footprint is 40% smaller than previous non-electric CLAs. The vehicle’s lithium-ion batteries also include a 30% lower carbon footprint than earlier battery generations.
The new CLA will be produced at Mercedes-Benz’s Rastatt plant in Germany, which will be entirely supplied by renewable energy. Energy consumption for its production has also been reduced by 15% over previous CLA models, according to Mercedes-Benz.
Mercedes-Benz said it had reduced waste by 38% in 2024 compared with 2023 by increasing its recycling rates. It plans to lower carbon dioxide emissions in its supply chain by 50% within the next decade.
The CLA will launch in Australia in 2026, a Mercedes-Benz spokesperson told Azzet, though the company said it was too early to provide an expected price range.
The company saw a 23% decline in all-electric vehicle sales last year, though plug-in hybrid sales rose by 13%. While it planned in 2021 to exclusively sell electric vehicles from 2030, it indefinitely postponed this target in 2024.
It also said it would discontinue its A-class hatchback last week, as it seeks to simplify its lineup.
Mercedes-Benz’s (XETRA: MBG) share price closed at EU€55.75 on Friday, down from its previous close at €56.47. Its market capitalisation is €54 billion.
