Daimler is planning to invest more than €7bn over the next two years on green powertrain technologies, including a plug-in hybrid electric-hydrogen fuel cell vehicle.
The company will invest €14.5bn in research and development in the next two years alone with more than half being spent on green automotive technologies. Passenger cars will receive about €5.4bn of this spending.
The fleet of vehicles resulting from this investment range from the smart city runabout and Mercedes-Benz passenger cars to buses, coaches, and trucks of the Fuso brand.
Daimler plans to electrify all Mercedes-Benz passenger car models in the next few years.
The company said reducing CO2 emissions across all vehicle categories is one of its top priorities.
Daimler board management member Thomas Weber said: "We are investing massively in electromobility, and we are convinced that the market is now ready. With the new vehicles we offer, we want to impress the benefits of the new mobility on car owners who have not yet opted for an electric vehicle."
In 2017, Daimler's Mercedes-Benz brand will introduce the GLC F-Cell, a plug-in hybrid hydrogen fuel cell vehicle that will have a longer operating range than the existing hybrids on the market.
The GLC F-Cell features a large lithium-ion battery, rated at around 9 kWh, which serves as an additional energy source for the electric motor. It can be charged externally by means of plug-in technology.
Daimler said the combination of fuel cell and battery systems will allow for a combined range of about 500 km.
The company is also developing a multi-model electric vehicle architecture for battery-powered vehicles, with the initial model expected to be launched onto the market before the end of 2020.
Mercedes-Benz already has 13 models on the market that are plug-in hybrids. Plans for 2017 include a re-vamped Model S 500 e that will enable for all-electric operating ranges of more than 50 km.
