"We plan an electric Smart for 2010 and for the same year a Mercedes (electric) model as well," Dieter Zetsche told Frankfurter Allgemeine Zeitung in comments to be published in the Saturday edition.
Daimler currently has in London a fleet of 100 first-generation Smart cars that run on electricity.
Unlike General Motors Corp (GM.N: Quote, Profile, Research), which has promised to launch a Chevrolet Volt plug-in electric car in 2010 selling for about $30,000 (15,182 pounds), Zetsche said no decision has been made regarding the price for the electric models.
"That depends on whether we sell the batteries with the car or lease them. The willingness (on the part of consumers) to pay more is limited," he said, adding that the group is also considering whether to manufacture electric motors itself.