Mercedes has confirmed it will enter Formula E at the start of the 2019/2020 season and quit DTM at the end of 2018.
The decisions will not impact on the German manufacturer's position in Formula One, which was recently bolstered by the announcement of a renewed title sponsorship deal with Petronas until 2020.
However, the decision to join Formula E does underline a shift in thinking in the motor industry as Mercedes becomes the latest major manufacturer to join the all-electric racing series.
Audi is set to step up its involvement with the Abt team next season while BMW recently announced its intention to run a works team with Andretti Autosport from the start of the 2018/2019 season. The increased involvement of the German car makers over the next two years will be in addition to the existing manufacturer-backed teams run by Renault and Jaguar.
In the end, Mercedes delayed its proposed entry date by one year in order to give itself time to fully prepare for the challenge.
"In motorsport like in every other area, we want to be the benchmark in the premium segment and to explore innovative new projects," Mercedes head of motorsport Toto Wolff said. "The combination of Formula One and Formula E delivers that.
"Formula E is like an exciting start-up venture: it offers a brand new format, combining racing with a strong event character, in order to promote current and future technologies. Electrification is happening in the road car world and Formula E offers manufacturers an interesting platform to bring this technology to a new audience -- and to do so with a completely new kind of racing, different to any other series.
"I am pleased that we were able to extend our entry option for one year to the 2019/20 season. This gives us time to properly understand the series and to prepare for our entry in the right way."
Under this season's Formula E regulations, the teams can develop their own powertrains, including Motor Generator Units and gearboxes. The battery is still provided by a single supplier, currently Williams Advanced Engineering, but McLaren Applied Technologies will take over the contract in 2018 on a two-year deal aimed at introducing a battery capable of completing a full race distance -- thus eliminating the need for a mid-race car swap. Mercedes hopes its entry will allow it to showcase the electric technology it is developing for the road.
"Mercedes-Benz will market future battery powered electric vehicles using the EQ label," said Dr Jens Thiemer, Mercedes' Vice President of Marketing. "Formula E is a significant step in order to demonstrate the performance of our attractive battery powered electric vehicles, as well as giving an emotional spin to our EQ technology brand through motorsport and marketing."
Mercedes' departure from DTM at the end of 2018 will bring an end to the marque's involvement in the German touring cars series, which stretches back to the its participation in the Deutsche Tourenwagen Meisterschaft in 1988. It has raced in every season of the DTM since it was reformed in 2000 and enjoyed a period of sustained success during the last decade before a barren spell without a constructors' championship from 2010 to today.
"Our years in the DTM will always be held high as a major chapter in the motorsport history of Mercedes," Wolff added. "I want to thank every team member whose fantastic work has helped to make Mercedes-Benz the most successful DTM manufacturer during that time. Although leaving is tough for all of us, we will be doing everything during this season and next to make sure we win as many DTM titles as possible before we go. We owe that to our fans and to ourselves."