Ahead of the determination of the title at the Berlin E-Prix last, Mercedes announced it would leave Formula E at the end of the 2022 season, which is the final year of Gen2 regulation.
This decision was made after Mercedes switched to offering an electric road car line in 2030, as part of an investment of £34 billion.
Mercedes Formula E CEO Toto Wolff and Team Principal Ian James will press ahead with plans to find private investment or a total sale of the Brackley-based racing team to continue the championship.
Speaking to Motorsport TV, Agag revealed how Mercedes' decision to leave Formula E had put him in a state of confusion.
“For me, I can't understand their decision. It just confuses me. They are increasingly selling electric cars. They will stop selling combustion cars in the UK by 2030,” he said.
In Mercedes' official announcement, it was explained that leaving Formula E would allow them to concentrate motorsport activities in Formula 1.
This refers to jet racing's status as the fastest laboratory for developing and proving future performance technologies that are sustainable and scalable.
Agag also suspected that the reason behind Mercedes' decision to leave Formula E was because The Silver Arrows wanted to spend the last moment with a car that uses a racing combustion engine.
“To get back to the burning race, maybe they have a little bit of the ‘last dance,'” Agag said.
“They want to enjoy the last years of burning fuel and then by 2030 they might be back in electric racing. Maybe before that.
“But I can't understand his decision, even if it doesn't matter.”
Mercedes is not the only manufacturer to leave. Audi and BMW will also leave. Nevertheless, Agag promises more new manufacturers to come while emphasizing the value of independent entry.
“We have other manufacturers who will join soon,” he said.
“We have a fantastic independent team. You have to prepare for the championship with an independent team. Formula E is in great shape.”
An announcement about the future of privateer Mercedes Formula E is currently believed to occur in the coming weeks.
Meanwhile, the electric car racing world championship will invite new manufacturers to provide input on Gen3 regulations.