Ola Kaellenius's comments come as Mercedes-Benz disclosed more details about its newest electric vehicle architecture, the CLA compact electric sedan, which will launch next year and target 30% to 35% more driving range. "The variable costs for an electric car are higher. It will remain that way for the foreseeable future," Kaellenius told journalists at the IAA car show in Munich, adding higher costs could not be passed on to customers on a like for like basis. Variable costs weighing on the price tag of EV production include raw materials for batteries, software development, and electricity prices. Batteries for the CLA will be produced by key supplier CATL (300750.SZ) and ACC, in which Mercedes owns a third.

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Persons: Ola Kaellenius's, Kaellenius, Markus Schaefer, Mercedes, Schaefer, Christina Amann, Christoph Steitz, Frances Kerry Organizations: Benz, Mercedes, IAA, ACC, Victoria, Thomson Locations: Woodstock , Alabama, MUNICH, Munich