Daimler AG’s Mercedes-Benz vowed to spend more than 40 billion euros ($64 billion) this decade to electrify its lineup and defend its position as the world’s best-selling luxury-car maker through a historic industry transformation.

The manufacturer plans to launch three new all-electric vehicle platforms in 2025 and set up eight additional battery factories with partners, it said in a strategy update Thursday, July 22. Mercedes is betting that the luxury segment will shift faster toward battery-powered products than the mass market because of customers’ greater purchasing power.

“The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade,” Chief Executive Officer Ola Kallenius said in a statement. “This step marks a profound reallocation of capital.”

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